<PAGE>



HIBERNIA COPRPORATION

Corporate Offices
313 Carondelet St.
New Orleans, LA 70130
504-533-3333

Mailing Address
P.O. Box 61540
New Orleans, LA 70161

Electronic Adress
Internet: www.hibernia.com
E-mail: mailus@hibernia.com

Shareholder, Employee Data
(at December 31, 1999)
Shareholder's of record: 17,243
Full-time equivalent employees: 5,211

Stock Listing
Common Stock
Exchange: NYSE
Symbol:  HIB
Price and volume
Listed  as  "Hibernia" or "HIB" in the  Wall Street Journal  and  under  similar
designations in other daily newspapers.

Sharholder Assistance
For  change  of  address,  records,  transfer of stock from one name to another,
assistance  with lost  certificates,  direct deposits of dividends or a Dividend
Reinvestment and Stock Purchase Plan prospectus:
   ChaseMellon Shareholder Services
   Securityholder Relations Department
   85 Challenger Road, Overpeck Centre
   Ridgfield Park, NJ 07660
   Toll free: 800-814-0305
   www.chasemellon.com

Dividend Reinvestment and Stock Purchase Plan
Once  enrolled,  shareholders may purchase new shares  directly form the Company
through  reinvested dividends,  optional  cash purchases  or both-an economical,
convenient  way to increase  Hibernia holdings.  For more information call, 800-
245-4388, Option 3.

Direct Deposit of Dividends
Obtain  dividends  faster  through  direct  deposit.   To  sign  up  or  receive
information, call 800-814-0305.

For Information
Shareholders,  media  and other individuals requesting the annual report,  Forms
10-K or 10-Q and  general information:  Jim Lestelle,  Senior Vice President and
Manager of Corporate Communications, 504-533-5482 or 800-245-4388, Option 4.
    Analysts and others requesting financial data: Trisha Voltz,  Vice President
and Manager of Investor Relations, 504-533-2180 or 800-245-4388, Option 2.
    For  fax access to news  releases, quarterly reports,  analyst reports,  and
dividend reinvestment details, call 800-207-9063.

Duplicate Mailings
Hibernia  is required to mail information to each shareholder on its list,  even
when there is duplication.  To eliminate duplicates, write to ChaseMellon Share-
holder Serevices at the address above  and  indicate  names to be removed.  This
does not affect dividend or proxy mailings.

<TABLE>
<CAPTION>
Hibernia Stock Price And Dividend Information
                             1999                            1998
--------------------------------------------------------------------------------
                                      Cash                             Cash
                   Market Price(1)    Dividends     Market Price(1)    Dividends
                   High     Low       Declared      High     Low       Declared
--------------------------------------------------------------------------------
<S>                <C>      <C>       <C>           <C>      <C>       <C>
1st quarter        $17.25   $13.19    $.105         $21.63   $17.25    $.09
2nd quarter        $16.19   $11.44    $.105         $21.94   $19.56    $.09
3rd quarter        $16.19   $11.63    $.105         $20.31   $13.50    $.09
4th quarter        $14.19   $10.38    $.12          $17.75   $13.06    $.105
--------------------------------------------------------------------------------
----------
(1) NYSE closing price.
</TABLE>


<PAGE>
<TABLE>
<CAPTION>
Five-Year Consolidated Summary of Income and Selected Financial Data (1)

Hibernia Corporation and Subsidiaries
====================================================================================================================================
Year Ended December 31
($ in thousands, except per-share data)                           1999            1998           1997           1996           1995
====================================================================================================================================
<S>                                                     <C>               <C>             <C>            <C>            <C>
Interest income .....................................   $    1,055,325    $    977,728    $   864,704    $   736,718    $   660,988
Interest expense ....................................          470,520         434,934        370,624        305,859        281,657
------------------------------------------------------------------------------------------------------------------------------------
Net interest income .................................          584,805         542,794        494,080        430,859        379,331
Provision for loan losses ...........................           87,800          27,226          3,433        (11,887)           733
------------------------------------------------------------------------------------------------------------------------------------
Net interest income after
  provision for loan losses .........................          497,005         515,568        490,647        442,746        378,598
------------------------------------------------------------------------------------------------------------------------------------
Noninterest income:
  Noninterest income ................................          214,271         181,530        153,677        127,292        113,973
  Securities gains (losses), net ....................              432           5,899          2,739         (5,200)         1,081
------------------------------------------------------------------------------------------------------------------------------------
Noninterest income ..................................          214,703         187,429        156,416        122,092        115,054
Noninterest expense .................................          440,921         426,155        418,879        366,294        325,950
------------------------------------------------------------------------------------------------------------------------------------
Income before taxes .................................          270,787         276,842        228,184        198,544        167,702
Income tax expense ..................................           95,684          95,886         80,289         68,465         19,298
------------------------------------------------------------------------------------------------------------------------------------
Net income ..........................................   $      175,103    $    180,956    $   147,895    $   130,079    $   148,404
------------------------------------------------------------------------------------------------------------------------------------
Net income applicable to common shareholders ........   $      168,203    $    174,056    $   140,995    $   128,339    $   148,404
====================================================================================================================================
Per common share information: (2)
  Net income ........................................   $         1.07    $       1.11    $      0.90    $      0.82    $      0.95
  Net income - assuming dilution ....................   $         1.06    $       1.09    $      0.89    $      0.82    $      0.95
  Tax-effected net income (3) .......................   $         1.07    $       1.11    $      0.90    $      0.82    $      0.70
  Cash dividends declared ...........................   $        0.435    $      0.375    $      0.33    $      0.29    $      0.25
Average shares outstanding (000s) ...................          157,253         157,169        156,324        155,689        155,804
Average shares outstanding - assuming dilution (000s)          158,902         159,615        158,854        157,187        156,730
Dividend payout ratio ...............................            40.65%          33.78%         36.67%         35.37%         26.32%
====================================================================================================================================
Selected year-end balances (in millions)
Loans ...............................................   $     10,856.7    $    9,907.2    $   8,387.2    $   6,894.5    $   5,389.4
Deposits ............................................         11,855.9        10,892.6       10,103.0        9,331.4        7,812.5
Debt ................................................            844.8           806.3          507.6           59.8           36.7
Equity ..............................................          1,375.5         1,344.6        1,220.4        1,100.0          915.1
Total assets ........................................         15,314.2        14,329.9       12,704.0       11,015.2        9,176.4
====================================================================================================================================
Selected average balances (in millions)
Loans ...............................................   $     10,455.8    $    9,121.6    $   7,496.9    $   6,036.3    $   4,865.7
Deposits ............................................         11,177.2        10,218.2        9,507.5        8,242.5        7,580.4
Debt ................................................            840.5           711.6           96.0           32.2           30.6
Equity ..............................................          1,359.7         1,286.4        1,154.9          966.0          830.3
Total assets ........................................         14,637.0        13,212.8       11,537.6        9,736.7        8,849.9
====================================================================================================================================
Selected ratios
Net interest margin (taxable-equivalent) ............             4.38%           4.51%          4.73%          4.84%          4.68%
Return on assets ....................................             1.20%           1.37%          1.28%          1.34%          1.68%
Return on common equity .............................            13.35%          14.67%         13.37%         13.65%         17.87%
Return on total equity ..............................            12.88%          14.07%         12.81%         13.47%         17.87%
Efficiency ratio ....................................            54.40%          57.93%         63.61%         64.74%         65.01%
Average equity/average assets .......................             9.29%           9.74%         10.01%          9.92%          9.38%
Tier 1 risk-based capital ratio .....................            10.21%          10.78%         11.26%         12.64%         15.19%
Total risk-based capital ratio ......................            11.46%          11.98%         12.51%         13.90%         16.46%
Leverage ratio ......................................             8.11%           8.55%          8.61%          8.92%          9.77%
====================================================================================================================================
Cash-basis financial data (3) (4)
Net income applicable to common shareholders ........   $      182,144    $    185,146    $   152,972    $   135,600    $   112,469
Net income per common share (2) .....................   $         1.16    $       1.18    $      0.98    $      0.87    $      0.72
Net income per common share - assuming dilution (2) .   $         1.15    $       1.16    $      0.96    $      0.86    $      0.72
Return on assets ....................................             1.31%           1.47%          1.40%          1.43%          1.27%
Return on common equity .............................            16.82%          17.91%         17.01%         17.24%         13.94%
Efficiency ratio ....................................            52.29%          56.24%         61.53%         63.45%         64.32%
Average equity/average assets .......................             8.18%           8.68%          8.78%          8.47%          9.14%
====================================================================================================================================
----------------
(1)All  financial information  has been  restated  for mergers  accounted for as
   poolings  of  interests.  The effects of mergers  accounted  for as  purchase
   transactions have been included from the date of consummation.  Prior periods
   have been  conformed to  current-period  presentation.
(2)Dividends per common share are historical amounts.  For  a  discussion of net
   income  per common share  computations  refer to Note 18  of the consolidated
   financial  statements - "Net Income Per Common Share Data."
(3)Adjusted  to reflect a 35% effective tax rate for  1995.
(4)Excluding amortization  and  balances of purchase  accounting intangibles net
   of applicable taxes.
</TABLE>

<PAGE>

Management's  Discussion and Analysis of Financial Condition and Results of
Operations

     Management's  Discussion  presents a review of the major factors and trends
affecting the performance of Hibernia Corporation (the  "Company" or "Hibernia")
and its subsidiaries, principally  Hibernia  National  Bank  (the "Bank").  This
discussion  should  be read  in conjunction  with  the  accompanying tables  and
consolidated  financial  statements.

1999 Highlights

--   Cash-basis  net  income  in  1999,  excluding  merger-related expenses, was
     $194.9 million ($1.20 per common share)  compared  to $194.1 million ($1.19
     per common share in 1998). Cash-basis net  income  excludes  the  effect of
     the amortization of purchase accounting intangibles.

--   Net  income  for 1999  totaled $175.1  million, a 3% decrease  compared  to
     $181.0  million for 1998.  Net income  per  common  share for 1999 of $1.07
     decreased 4% compared to $1.11 for 1998, and net income per common  share -
     assuming  dilution was $1.06 for 1999,  a decrease of  3% compared to $1.09
     for 1998.

--   Pre-tax,  pre-provision  earnings  in  1999  were  $358.6  million,  an 18%
     increase compared to $304.1 million in 1998 and a 55% increase compared  to
     $231.6  million  in 1997.  The  provision  for loan  losses in 1999 totaled
     $87.8  million  compared  to $27.2  million  in  1998.  The 1999  provision
     exceeded net  charge-offs  by $22.9  million.

--   Total assets increased  $1.0 billion (7%) to $15.3  billion at December 31,
     1999  compared to December  31, 1998.

--   Loans grew 10% to $10.9  billion at  December 31, 1999 compared to December
     31, 1998.  Consumer loans grew $843.9  million (21%) to $4.8 billion, small
     business  loans  increased  $292.1  million  (14%)  to  $2.4   billion  and
     commercial loans decreased $186.5 million (5%) to $3.7  billion. Commercial
     loans decreased as management  implemented new policies  designed to better
     manage and diversify the risk of the portfolio.

--   Delinquencies as a  percentage  of total loans  at  December  31, 1999 were
     0.46%,  down from 0.60% at December  31,  1998.  Commercial, small business
     and consumer loan delinquencies were 0.15%, 0.34% and 0.75%,  respectively,
     at year-end  1999,  compared  to 0.27%,  0.50% and 0.98%, respectively,  at
     year-end  1998.

--   Deposits increased to $11.9 billion at December 31, 1999, a $963.3  million
     (9%) increase  from December 31, 1998.

--   Net interest income  increased $42.0 million (8%) to $584.8 million in 1999
     from $542.8  million in 1998. The  net interest  margin was 4.38% for 1999,
     compared to 4.51% for 1998.  The decline in the margin  was  primarily  the
     result of lower yields on earning assets,  the increased use of market-rate
     funds and the  decline  in  the  percentage  of  noninterest-bearing  funds
     supporting earning assets.

--   On a taxable-equivalent basis,  excluding securities transactions, revenues
     for 1999 totaled  $810.6  million,  a $74.9 million (10%) increase from the
     1998  level  of  $735.6  million.  Noninterest income, excluding securities
     transactions,  increased $32.7 million (18%) to $214.3 million  compared to
     1998.  Noninterest expense for 1999  totaled  $440.9  million,  an increase
     of $14.8 million (3%) from 1998.

--   Operating  efficiency  and  productivity  continued  to  improve.  In  1999
     the efficiency  ratio was 54.40%  compared to 57.93% in 1998 and 63.61%  in
     1997.  The  cash-basis  efficiency  ratio,  which  excludes  the  impact of
     amortization  of  purchase  accounting  intangibles,  was  52.29%  in  1999
     compared to 56.24% in 1998  and  61.53%  in  1997.  Revenue  per  full-time
     equivalent   employee,   another   efficiency   measure,  increased  9%  to
     approximately  $155,000  in  1999  from approximately  $142,000 in 1998.

--   Cash  dividends  per  common  share  for 1999 increased  to  $.435,  or 16%
     higher than the 1998 cash dividend of $.375 per common share and 32% higher
     than the 1997 cash  dividend of $.33 per  common share. The dividend payout
     ratios for 1999, 1998 and 1997 were 40.7%, 33.8% and 36.7%, respectively.

--   In  1999  Hibernia  completed  a  merger  with  one  East  Texas  financial
     institution  and  purchased  the assets and assumed the  liabilities of the
     Beaumont  branches of Chase Bank of Texas,  N.A. These  mergers  added $785
     million in assets and 13 banking  offices.


Merger  Activity

     In 1999 the Company completed  a merger  with  MarTex  Bancshares,  Inc. in
East  Texas  which  was accounted  for as a pooling of  interests.  Additionally
in 1999,  the Company purchased  the assets and assumed the  liabilities  of the
Beaumont  branches ofChase Bank of Texas,  N.A.  (the  "Beaumont  transaction").
In 1998 the Company completed  four mergers, three in Louisiana  and one in East
Texas, which were accounted for as poolings of interests.  The Company completed
two mergers with East Texas  financial institutions in 1997 which were accounted
for as poolings of interests.

     The  institutions  with which  the Company merged are collectively referred
to as  the "merged  companies."  The  merged  companies  that  were  acquired in
transactions  accounted  for  as  poolings of interests  are  referred to as the
"pooled   companies,"  and  institutions  that  were  acquired  in  transactions
accounted for as purchases  are referred to as the  "purchased  companies."

     All prior-year  information  has been  restated  to  reflect  the effect of
mergers accounted for as poolings of interests.  For purchase  transactions, the
financial information of those institutions is combined with Hibernia  as of and
subsequent  to  consummation;   therefore,   certain  items  contained  in  this
discussion are only  comparable  after  excluding  the effect of  the  purchased
companies.

     Measures of financial  performance  subsequent to the purchase transactions
are more relevant when comparing "cash-basis" results (i.e., before amortization
of purchase accounting intangibles)  because they  are  more  indicative of cash
flows, and thus the Company's ability to support growth and pay  dividends.  The
cash-basis measures of financial  performance are presented in the Five-Year and
Quarterly Consolidated Summary of Income and Selected Financial Data on pages 20
and 43.


Financial   Condition

Earning  Assets

     Interest  income from  earning  assets (including loans, securities, short-
term investments and mortgage loans held for sale) is the Company's  main source
of income.  Average  earning assets totaled $13.6  billion in 1999,  compared to
$12.3 billion in 1998 and $10.7 billion in 1997. The increase in average earning
assets of $1.3  billion in 1999 and $1.6  billion in 1998 was  primarily  due to
growth in the loan  portfolio.

     Loan demand remained strong throughout 1999.  Average loans as a percentage
of average earning assets  increased to 76.7% in 1999  compared to 74.2% in 1998
and 70.3% in 1997.  Average  securities  decreased  to 20.3% of average  earning
assets in 1999 from 22.1% in 1998 and 26.1% in 1997. The Company funded the 1999
increase in earning assets through growth in interest-bearing deposits of $787.5
million, other  interest-bearing  liabilities  of  $424.5  million, noninterest-
bearing liabilities of $138.9 million and shareholders' equity of $73.3 million.

     Total earning assets at December 31, 1999  were  $14.2  billion,  up $838.6
million (6%)  from  a  year  earlier  primarily  due to a  $949.5  million (10%)
increase in loans.

     LOANS.  The  Company's  lending  activities  are  subject  to  both prudent
underwriting  standards and liquidity  considerations.  Loans allow  Hibernia to
meet  customer  credit  needs  and at the  same  time  achieve  yields  that are
generally  higher  than  those  available  on  other  earning  assets.   Lending
relationships  are one way Hibernia  meets its goal of providing  for all of the
financial needs of its customers.

     Hibernia engages in commercial,  small business and consumer  lending.  The
specific  underwriting  criteria for each  major loan category are outlined in a
credit policy approved by the Board of Directors.  In general,  commercial loans
are  evaluated  based on  cash flow, collateral,  market conditions,  prevailing
economic  trends,  character and leverage capacity of the borrower,  and capital
and investment  in a particular  property,  if applicable.  Most small  business
and consumer loans are  underwritten  using credit scoring models which consider
factors  including payment capacity, credit history and collateral. In addition,
market  conditions,  economic  trends  and  the  character of  the  borrower are
considered.  The  credit  policy,  including the underwriting criteria for major
loan categories,  is reviewed on a regular basis and adjusted when  warranted.

     Average  loans increased  $1.3 billion (15%) in 1999 and $1.6 billion (22%)
in 1998.  Excluding  the effect  of  the  Beaumont  transaction,  average  loans
increased  approxi-mately  14% from 1998 to 1999.  Hibernia's efforts to achieve
its  goal of being recognized as the integrated financial services leader in the
Gulf South by building  the most  comprehensive  and convenient banking network,
and  delivering top-quality service  across a broad range of financial  products
and  services,  enabled the Company to increase loans by deepening relationships
with  existing  customers and by  attracting  new customers  from competitors.

     Table 1 details Hibernia's commercial  and small  business loans classified
by  repayment source  and consumer loans classified  by type.  In 1999  consumer
loans  grew $843.9 million (21%),  small business loans increased $292.1 million
(14%) and commercial  loans decreased $186.5 million (5%). The portfolio mix was
44%  consumer,  22% small  business and 34% commercial at year-end 1999 compared
to 40%, 21% and 39%, respectively, at year-end 1998. Hibernia's lending strategy
includes  maintaining  an  appropriately  balanced  portfolio.

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
TABLE 1 - COMPOSITION OF LOAN PORTFOLIO
=====================================================================================================================
December 31 ($ in millions)                                           1999                          1998
---------------------------------------------------------------------------------------------------------------------
                                                           Balance         Percent       Balance        Percent
---------------------------------------------------------------------------------------------------------------------
<S>                                                     <C>                 <C>        <C>                <C>

Commercial:
    Commercial and industrial ..................        $   1,501.0         13.8%      $  1,371.2         13.8%
    Services industry ..........................              955.4          8.8          1,055.6         10.7
    Real estate ................................              434.2          4.0            457.4          4.6
    Health care ................................              298.1          2.7            306.5          3.1
    Transportation, communications and utilities              228.6          2.1            212.0          2.1
    Energy .....................................              192.6          1.8            422.0          4.3
    Other ......................................               83.4          0.8             55.1          0.6
---------------------------------------------------------------------------------------------------------------------
          Total commercial .....................            3,693.3         34.0          3,879.8         39.2
---------------------------------------------------------------------------------------------------------------------
Small Business:
    Commercial and industrial ..................              823.4          7.6            770.8          7.8
    Services industry ..........................              539.6          5.0            440.2          4.4
    Real estate ................................              340.2          3.1            274.7          2.8
    Health care ................................              150.8          1.4            107.6          1.1
    Transportation, communications and utilities               91.9          0.9             82.2          0.8
    Energy .....................................               43.7          0.4             46.3          0.5
    Other ......................................              372.3          3.4            348.0          3.5
---------------------------------------------------------------------------------------------------------------------
          Total small business .................            2,361.9         21.8          2,069.8         20.9
---------------------------------------------------------------------------------------------------------------------
Consumer:
    Residential mortgages:
        First mortgages ........................            2,263.4         20.8          1,915.5         19.3
        Junior liens ...........................              282.1          2.6            190.1          1.9
    Indirect ...................................            1,277.3         11.8            850.5          8.6
    Revolving credit ...........................              374.2          3.4            325.8          3.3
    Other ......................................              604.5          5.6            675.7          6.8
---------------------------------------------------------------------------------------------------------------------
          Total consumer .......................            4,801.5         44.2          3,957.6         39.9
---------------------------------------------------------------------------------------------------------------------
Total loans ....................................        $  10,856.7        100.0%      $  9,907.2        100.0%
=====================================================================================================================
</TABLE>

     Commercial Loans.  The change in the commercial portfolio was primarily due
to  decreases in energy,  down $229.4 million (54%),  and the services industry,
down $100.2 million (9%), partially offset by an increase of $129.8 million (9%)
in  commercial   and   industrial.  Hibernia's   loan   portfolio  remains  well
diversified, as evidenced by the portfolio percentages presented in Table 1. The
decrease in commercial loans is the result of the implementation of new policies
designed to better  manage and  diversify  the risk of the  portfolio.

     Although  the overall economy  continues  to  expand,  the energy  industry
experienced a decline in 1998 and early 1999 as oil prices decreased  worldwide.
The  Company's experienced energy/maritime  management  team  reviews the energy
portfolio  for potential adverse developments and proactively manages Hibernia's
exposure to risk. As a result of these efforts,  the Company's energy  portfolio
has been reduced.  However, the Company remains active in the energy industry on
a selective basis, and the energy portion of the loan portfolio  represents 2.2%
of total loans as of December 31, 1999.

     Hibernia's commercial loan  portfolio does not contain significant exposure
to foreign  countries.

     Small  Business  Loans.   Hibernia  generally  categorizes  companies  with
revenues of less than  $10 million  as  small  businesses.  The  small  business
portfolio showed increases primarily in the services industry,  up $99.4 million
(23%); real estate, up $65.5 million (24%); commercial and industrial,  up $52.6
million  (7%);  and health care, up $43.2 million (40%).

     Centralized   underwriting,  utilization  of sophisticated  credit  scoring
models and Hibernia's shortened application  form,  "No Financials Application,"
have  made  the  underwriting  process more  efficient  while maintaining credit
quality.  This allows  Hibernia's  experienced  business bankers located in each
market to concentrate on serving the credit and other  financial  needs of small
business customers.

     Consumer  Loans.  The increase in the consumer  portfolio  was spread among
residential  mortgages,  up $439.9  million  (21%);  indirect, up $426.8 million
(50%);  and  revolving  credit,  up  $48.4  million (15%).  These increases were
partially  offset by a decrease of $71.2 million (11%) in the "other" category.

     Residential  mortgage loans comprise  more  than  half of the consumer loan
portfolio.  Increased marketing efforts, new products, shortened application and
approval processes, extended  service hours and an increase in the percentage of
adjustable-rate   mortgages   funded   and  retained   were  the  major  factors
contributing  to the growth from 1998.  Hibernia's  increased  focus on mortgage
lending resulted in  approximately $2.3  billion in  mortgage  loan originations
during 1999.

     The level of adjustable-rate  mortgages  increased in 1999 as a  result  of
changes  in   the   interest  rate   environment.  Generally,  Hibernia  retains
adjustable-rate  mortgage  loans  and  sells  fixed-rate  mortgage loans,  while
retaining  the  associated  servicing  rights.   At  December 31, 1999  Hibernia
serviced  approximately $5.4 billion in residential  mortgage loans.

     In addition to loans for the purchase of homes, Hibernia offers customers a
broad assortment of loans secured by residential mortgages, including the Equity
PrimeLine(R),  an  attractively  priced line of credit secured by the customer's
residence.

     An  additional factor contributing  to the change in the consumer portfolio
during 1999 was the increase in indirect loans. This growth was fueled primarily
by a strategic expansion  into the Texas market  and  the  introduction of a new
automobile  lease  product.  When  new markets are  entered and new products are
introduced,  outstanding  loans  grow  rapidly  for  the  first  few years until
maturing  loans and pay-offs begin to offset  current  production.

     During 1999, Hibernia  securitized  $512.6 million of its residential first
mortgages  through the Federal National  Mortgage  Association  (FNMA), of which
$210.0 million  was  securitized  during the second quarter of 1999  and  $302.6
million was securitized during the fourth quarter of 1999. These portions of the
consumer portfolio were securitized with recourse provisions,  and reserves have
been  established  to cover estimated  losses.   These transactions  affect  the
categorization  of  individual  line  items on  the  balance  sheet by  reducing
mortgage  loans and increasing securities.

<TABLE>
<CAPTION>
==========================================================================================
TABLE 2 - COMPOSITION OF SECURITIES
------------------------------------------------------------------------------------------
December 31  ($ in millions)                    1999            1998            1997
------------------------------------------------------------------------------------------
<S>                                       <C>             <C>             <C>

Available for sale:

U.S. Treasuries ..................        $    277.0      $    257.6      $    437.8
U.S. government agencies:
     Mortgage-backed securities ..             997.8         1,019.7         1,349.2
     Bonds .......................           1,065.3         1,153.2           626.4
States and political subdivisions              224.4           255.8           260.8
Other ............................              95.8            75.4            66.6
------------------------------------------------------------------------------------------
          Total available for sale           2,660.3         2,761.7         2,740.8
------------------------------------------------------------------------------------------
Held to maturity:
U.S. government agencies:
     Mortgage-backed securities ..             300.5             -               -
------------------------------------------------------------------------------------------
          Total held to maturity .             300.5             -               -
------------------------------------------------------------------------------------------
Total securities .................        $  2,960.8      $  2,761.7      $  2,740.8
==========================================================================================
</TABLE>

     SECURITIES.  At the  end of  1999,  securities  totaled  $3.0  billion,  an
increase of $199.1  million, or 7%, from the end of 1998. Of total securities at
December 31, 1999,  89% are  debt  securities  of  the  U.S.  government or  its
agencies.  Most securities held by the Company qualify as pledgeable  securities
and are used to collateralize  repurchase  agreements and public fund  deposits.
The  composition of the securities  portfolio is shown in Table 2.

     During 1998,  as  a  result of  the  interest  rate  environment,  Hibernia
restructured  a portion of its  securities  portfolio,  resulting in the sale of
$30.0 million of U.S.  Treasuries  and the purchase of a similar amount of U. S.
government  agencies.  In  connection  with  these  transactions,   the  Company
recognized a gain on the sale of  securities of $1.3  million,  while  enhancing
future interest  income.

     Trading  Account  Assets.  The  Company  held  no trading account assets at
December 31, 1999  or  December 31, 1998.  The Company  held  $35.9  million  in
securities  as trading  account  assets at December 31, 1997.  These securities,
purchased in late 1997,  related to a single transaction  associated  with a tax
planning  strategy  and were sold  in early 1998  for  slightly  more than their
carrying value at year-end 1997.  Hibernia classifies its trading account assets
as short-term investments.

<TABLE>
<CAPTION>
====================================================================================================================================
TABLE 3 - MATURITIES AND YIELDS OF SECURITIES(1)
====================================================================================================================================
                                                           Due after 1       Due after 5
                                         Due in 1 year    year through      years through        Due after
December 31, 1999 ($ in millions)           or less          5 years          10 years           10 Years             Total
------------------------------------------------------------------------------------------------------------------------------------
                                        Amount  Yield    Amount   Yield    Amount   Yield     Amount   Yield     Amount   Yield
====================================================================================================================================
Available for sale:
<S>                                   <C>       <C>     <C>       <C>     <C>       <C>     <C>        <C>     <C>        <C>
U.S. Treasuries ..................    $  47.0   5.74%   $ 230.0   5.67%   $     -      -%   $      -      -%   $  277.0   5.69%
U.S. government agencies:
    Mortgage-backed securities (2)       13.3   6.50       36.1   6.62      174.9   7.46       773.5   6.47       997.8   6.65
    Bonds ........................      107.6   5.72      127.2   5.92      716.3   6.76       114.2   6.93     1,065.3   6.57
States and political subdivisions        10.0   7.51       51.9   7.82       45.8   7.85       116.7   8.61       224.4   8.19
Other ............................       90.7   4.11        2.4   5.03        1.3   5.03         1.4   5.69        95.8   4.16
------------------------------------------------------------------------------------------------------------------------------------
       Total available for sale ..    $ 268.6   5.28%   $ 447.6   6.06%   $ 938.3   6.94%   $1,005.8   6.77%   $2,660.3   6.56%
------------------------------------------------------------------------------------------------------------------------------------
Held to Maturity:
U.S. government agencies:
    Mortgage-backed securities (2)    $     -      -%   $     -      -%   $   6.3   5.09%   $  294.2   6.15%   $  300.5   6.13%
------------------------------------------------------------------------------------------------------------------------------------
       Total held to maturity ....    $     -      -%   $     -      -%   $   6.3   5.09%   $  294.2   6.15%   $  300.5   6.13%
====================================================================================================================================
----------
(1)Yield computations are presented on a  taxable-equivalent  basis using market
   values for securities  available for sale, amortized cost for securities held
   to maturity and a statutory income tax rate of 35%.
(2)Mortgage-backed  securities are classified  according to contractual maturity
   without  consideration of principal  amortization,  projected  prepayments or
   call options.
</TABLE>

     Securities  Available  For  Sale.  Average  securities  available for  sale
increased  $21.1  million (1%) to  $2.7  billion  in  1999.  Average  securities
available for sale decreased $68.6 million from 1997 to 1998.

     At December 31, 1999 the securities  available for sale  portfolio included
$350.2  million  of  adjustable-rate   securities,   primarily   mortgage-backed
securities,  which are tied to a cost-of-funds index. In much the same manner as
Hibernia's  cost of funds adjusts to new market rates over a period of time, the
rates on these  securities  may not fully  reflect  a change in market  interest
rates for more than a year.

     The average  repricing  period of securities available for sale at December
31, 1999 was 5.5 years,  unchanged from December 31, 1998.  Carrying  securities
available  for sale at market value has the effect of recognizing a yield on the
securities  equal  to the  current  market  yield.

     Securities Held To Maturity.  Average  securities held to maturity  totaled
$31.5 million in 1999. The increase was a result of the securitization of $302.6
million  of  residential  first  mortgages  in the fourth  quarter  of 1999.

     At  December 31, 1999  the  securities  held to maturity portfolio included
$238.2 million of adjustable-rate mortgage-backed securities,  which are tied to
a cost-of-funds index.  The average  repricing  period  of  securities  held  to
maturity at  December  31, 1999 was 4.5 years.

      Maturities and yields of securities at year-end 1999 are detailed in Table
3. Mortgage-backed securities are classified according  to contractual  maturity
without consideration of principal amortization,  projected  prepayments or call
options.

     SHORT-TERM  INVESTMENTS.  Average short-term investments, primarily federal
funds  sold  and  securities  purchased  under  agreements  to  resell  (reverse
repurchase agreements) decreased $24.6  million (10%) in 1999 to $232.5 million.
This decrease is the result of the securitization of residential first mortgages
previously  discussed which generated  collateral required for certain deposits,
thus  reducing   the   need  for  short-term  investments.   Average  short-term
investments decreased $60.6 million (19%) in 1998 compared to 1997.

     MORTGAGE  LOANS HELD FOR SALE.  Mortgage loans held for sale are loans that
have been  originated and are  pending securitization or sale in  the  secondary
market.  Average  mortgage  loans  held for sale were $167.2  million in 1999, a
$32.3  million (16%)  decrease from $199.5  million  in 1998.  Average  mortgage
loans held for sale in 1998 increased  $135.7 million (213%) from $63.8 million.
Since  mortgage warehouse  loans are  generally  held in  inventory  for a short
period of time (30 to 60 days),  there  may be  significant differences  between
average and period-end balances.  At year-end 1999, mortgage loans held for sale
totaled $92.7 million  compared to $281.4  million and $69.6 million in 1998 and
1997, respectively.

     Mortgage loans held for sale, previously included in total  loans, began to
be reported as a separate line item on the balance sheet as of January  1, 1999.
Prior-period  information  has  been reclassified to reflect this change.


Asset Quality

     Several key measures are used to evaluate  and  monitor the Company's asset
quality.  These measures include the level  of  loan  delinquencies;  nonaccrual
loans; restructured loans; and foreclosed assets and excess bank-owned property,
in addition to their related ratios.

     Table 4  details  loan  delinquencies and  delinquencies as a percentage of
their  related  portfolio  segment and in total for each of the past five years.
The  level of  accruing,  delinquent  loans  past due 30 days or more was  $49.6
million,  or 0.46% of loans at December 31, 1999,  down from $59.6  million,  or
0.60% of total loans at December 31, 1998 and $70.4  million,  or 0.84% of loans
at year-end 1997. The decline in 1999 reflects lower levels of delinquent  loans
in each of the three loan  portfolio  segments - commercial,  small business and
consumer. Commercial delinquencies improved to 0.15% at year-end 1999, down from
0.27% a year ago and down  slightly  from  0.18% at  year-end  1997.  The  small
business loan delinquency ratio improved to 0.34% in 1999 from 0.50% in 1998 and
0.80% in 1997,  and the consumer  loan  delinquency  ratio  improved to 0.75% in
1999,  from 0.98% and 1.47% in 1998 and 1997,  respectively.  The improvement in
small business  delinquencies in 1999 is the result of continued enhancements in
the underwriting, portfolio management and collection processes. The improvement
in consumer  delinquencies  for 1999 is primarily due to ongoing  adjustments in
the  underwriting  criteria and  enhancements  in the  collection  process.  The
reduction  in consumer  delinquencies  from 1997 to 1998 is  primarily  due to a
change in the reporting  methodology for mortgage loans from number of days past
due to payment  cycle date,  a  methodology  utilized  in the banking  industry.

<TABLE>
<CAPTION>
===================================================================================================================
TABLE 4  -  LOAN DELINQUENCIES (1)
===================================================================================================================
December 31 ($ in millions)                             1999        1998        1997        1996      1995(2)
-------------------------------------------------------------------------------------------------------------------
<S>                                                 <C>         <C>         <C>         <C>         <C>
Days past due:
  30 to 89 days ...............................     $   43.6    $   52.6    $   64.6    $   80.6    $   56.1
  90 days or more .............................          6.0         7.0         5.8         6.0         3.5
-------------------------------------------------------------------------------------------------------------------
     Total delinquencies ......................     $   49.6    $   59.6    $   70.4    $   86.6    $   59.6
===================================================================================================================
Total delinquencies as a percentage of loans:
  Commercial ..................................         0.15%       0.27%       0.18%       0.84%       0.45%
  Small business ..............................         0.34%       0.50%       0.80%       1.00%          -
  Consumer ....................................         0.75%       0.98%       1.47%       1.75%       2.01%
  Total loans .................................         0.46%       0.60%       0.84%       1.26%       1.11%
===================================================================================================================
----------------
(1) Accruing loans past due as to principal and/or interest 30 days or more.
(2) Small business loans are included in commercial loans in 1995.
</TABLE>

     Nonperforming  loans consist of  nonaccrual loans (loans on  which interest
income is not currently  recognized) and  restructured loans (loans with  below-
market  interest rates or other  concessions due to  the deteriorated  financial
condition  of  the  borrower).  Nonperforming  loans totaled  $76.5  million  at
December 31, 1999,  up from $40.9  million a year ago and $23.6 million in 1997.
The change from 1998 was primarily  driven by nonaccrual loans in the commercial
loan  portfolio, which increased to $51.6 million from $19.2 million as a result
of  the deterioration  of  two large credits in  the health  care and death care
industries  during  the latter  part of  1999.  The  majority  of  nonperforming
consumer loans are residential mortgage loans  on  which  no significant  losses
are expected.  The composition of nonperforming loans, foreclosed assets (assets
to which title has been assumed in  satisfaction  of debt) and excess bank-owned
property as well as certain asset quality ratios for the past five years are set
forth in Table 5.

     Interest  payments  received  on nonperforming  loans are applied to reduce
principal  if  there  is  doubt  as  to  the  collectibility  of  the principal;
otherwise, these receipts are recorded as interest income. Certain nonperforming
loans are current as to principal and interest  payments but  are  classified as
nonperforming  because there is doubt concerning full  collectibility.

     Loans  are  considered to be impaired  when it is probable that all amounts
due in accordance with the contractual terms will not be collected.  Included in
nonaccrual  loans are loans that are considered to be impaired  under  Statement
of Financial  Accounting  Standards  No. 114 totaling $70.0  million at December
31, 1999 and $37.2  million at December 31, 1998.  Included in the 1999 and 1998
amounts  were $65.9  million  and $33.2 million, respectively, of impaired loans
for  which the  related reserve for  loan  losses  was  $17.2 million  and  $9.8
million,  respectively.

<TABLE>
<CAPTION>
====================================================================================================================
TABLE 5  -  NONPERFORMING ASSETS
====================================================================================================================
($ in thousands)                             1999           1998           1997           1996         1995(1)
--------------------------------------------------------------------------------------------------------------------
<S>                                    <C>            <C>            <C>            <C>            <C>
Nonaccrual loans:
  Commercial ......................    $   51,620     $   19,215     $    5,282     $    4,230     $   14,569
  Small business ..................        18,329         17,694         11,762          9,335              -
  Consumer ........................         6,512          4,031          6,532          4,053          4,255
--------------------------------------------------------------------------------------------------------------------
    Total nonperforming loans .......      76,461         40,940         23,576         17,618         18,824
--------------------------------------------------------------------------------------------------------------------
Foreclosed assets ...............           7,710         10,762          3,056          5,828          7,136
Excess bank-owned property ......           4,197          2,648          2,360          3,670          2,946
--------------------------------------------------------------------------------------------------------------------
    Total nonperforming assets ......  $   88,368     $   54,350     $   28,992     $   27,116     $   28,906
====================================================================================================================
Reserve for loan losses .........      $  156,072     $  130,347     $  126,557     $  146,097     $  167,505
Nonperforming loan ratio:
  Commercial ......................          1.40%          0.50%          0.17%          0.18%          0.47%
  Small business ..................          0.78%          0.85%          0.61%          0.55%             -
  Consumer ........................          0.14%          0.10%          0.19%          0.14%          0.19%
  Total loans .....................          0.70%          0.41%          0.28%          0.26%          0.35%
Nonperforming asset ratio .......            0.81%          0.55%          0.35%          0.39%          0.54%
Reserve for loan losses as a
  percentage of nonperforming loans        204.12%        318.39%        536.80%        829.25%        889.85%
====================================================================================================================
----------------
(1) Small business loans are included in commercial loans in 1995.
</TABLE>

<TABLE>
<CAPTION>
==========================================================================================================================
TABLE 6 - SUMMARY OF NONPERFORMING LOAN ACTIVITY
==========================================================================================================================
                                              Commercial          Other          Small
($ in thousands)                             Real Estate     Commercial       Business      Consumer          Total
--------------------------------------------------------------------------------------------------------------------------
<S>                                              <C>         <C>            <C>            <C>           <C>
Nonperforming loans at December 31, 1998         $    81     $   19,134     $   17,694     $   4,031     $   40,940
Additions ..............................             414        114,685         18,438         9,300        142,837
Gross charge-offs ......................             (16)       (40,779)        (2,695)         (688)       (44,178)
Transfers to foreclosed assets .........             (65)        (1,676)          (951)       (2,464)        (5,156)
Returned to performing status ..........               -         (4,948)          (591)       (1,122)        (6,661)
Payments and sales .....................            (300)       (34,910)       (13,566)       (2,545)       (51,321)
==========================================================================================================================
Nonperforming loans at December 31, 1999         $   114     $   51,506     $   18,329     $   6,512     $   76,461
==========================================================================================================================
</TABLE>

     In addition to the nonperforming  loans discussed earlier,  there are $62.7
million of loans which, in   management's   opinion,   are   currently   subject
to  potential   future classification  as  nonperforming.

      Table 6  presents  a summary  of changes in nonperforming loans  for  1999
by loan  type  (commercial  real  estate, other commercial,  small  business and
consumer).  Loans totaling  $142.8 million were added during the year, primarily
in the commercial  loan  portfolio.  Sales and  payments  resulted  in  a  $51.3
million reduction  in nonperforming loans.  Charge-offs of $44.2 million further
reduced   nonperforming  loans  during 1999.  A  significant  portion  of  these
charge-offs  related to the sales of a  number of large  credit relationships in
the  secondary  market.  In addition,  $6.7  million in  loans were  returned to
performing status.  Recoveries  experienced on previously charged-off  loans are
reflected  in the reserve for loan losses in Table 7 and  are not a component of
nonperforming loan activity.

     Foreclosed assets and excess bank-owned property, which are recorded atfair
value less  estimated selling costs, totaled $11.9 million at December 31, 1999,
$13.4 million at December 31, 1998 and $5.4 million at December 31, 1997.

     Nonperforming assets as a percentage of  total loans plus foreclosed assets
and  excess   bank-owned   property (nonperforming  asset  ratio) is one measure
of asset  quality.  At December 31, 1999 the Company's nonperforming asset ratio
was 0.81%  compared to 0.55% at year-end 1998 and 0.35% at year-end  1997.

     Another  measure of asset quality is the amount of net  charge-offs  during
the year  compared to average loans.  As illustrated in Table 7, net charge-offs
totaled  $64.9 million  in 1999 compared to $23.4  million  in  1998  and  $23.5
 million  in 1997.  Net charge-offs as a percentage of average  loans were 0.62%
in 1999  compared  to 0.26% in  1998  and 0.31% in  1997.  The  increase  in net
charge-offs  primarily  occurred  in the commercial  loan  portfolio,  while net
charge-offs  in the small  business and consumer portfolios declined from levels
experienced in the previous two years.


Reserve and  Provision for Loan Losses

     The  provision  for  loan losses is a charge to  earnings to  maintain  the
reserve for loan losses at a level  consistent  with management's  assessment of
the loan  portfolio  in light of current  economic conditions and market trends.
The Company recorded an $87.8 million provision for loan losses in 1999 compared
to $27.2 million in 1998 and $3.4 million in 1997. The increase in the provision
was made primarily to address credit quality issues within  the commercial  loan
portfolio, as indicated by higher levels of charge-offs and nonperforming loans.
The  provision  for  loan  losses  for  1999  exceeded  net charge-offs by $22.9
million.  Table 7 presents an analysis of the activity  in the reserve  for loan
losses for the past three  years.

     The reserve for loan losses is composed of  specific reserves (assessed for
each loan that is reviewed for impairment or for which a  probable loss has been
identified),  general  reserves  (based  on  historical  loss  factors)  and  an
unallocated  reserve.

     The  Company continuously evaluates its reserve for loan losses to maintain
an adequate level to absorb loan losses inherent in the loan portfolio. Reserves
on impaired  loans are based on discounted cash flows using the  loan's  initial
effective  interest rate,  the  observable  market value of the loan or the fair
value  of  the  collateral  for  certain   collateral-dependent  loans.  Factors
contributing to the  determination  of specific  reserves  include the financial
condition  of the  borrower,  changes  in the value of  pledged  collateral  and
general  economic   conditions.   General  reserves  are  established  based  on
historical charge-offs  considering factors which include risk rating,  industry
concentration and loan type, with the most recent charge-off experience weighted
more  heavily.  The  unallocated  reserve,  which  is  judgmentally  determined,
generally  serves to compensate for the  uncertainty in estimating  loan losses,
including  the  possibility  of changes in risk  ratings  and  specific  reserve
allocations.  It also  considers  the lagging  impact of  historical  charge-off
ratios  in  periods  where  future  charge-offs  are  expected  to  increase  or
decrease   significantly.   In  addition,   the  reserve   considers  trends  in
delinquencies and nonaccrual loans,  industry  concentration,  the volatility of
risk ratings and the evolving  portfolio  mix in terms of  collateral,  relative
loan size,  the degree of  seasoning  in the  various  loan  products  and loans
recently acquired through mergers.  The results of reviews performed by internal
and external examiners are also considered.

<TABLE>
<CAPTION>
====================================================================================================================================
TABLE 7  -  RESERVE FOR LOAN LOSSES ACTIVITY
====================================================================================================================================
Year Ended December 31
($ in thousands)                                                            1999                    1998                    1997
====================================================================================================================================
<S>                                                                   <C>                     <C>                     <C>
Balance at beginning of year                                          $  130,347              $  126,557              $  146,097
Loans charged off:
    Commercial                                                           (46,195)                 (1,751)                 (4,695)
    Small business                                                       (12,134)                (12,485)                (11,329)
    Consumer                                                             (25,037)                (26,652)                (30,393)
Recoveries:
    Commercial                                                             5,303                   6,090                   9,135
    Small business                                                         4,835                   2,680                   2,445
    Consumer                                                               8,300                   8,682                  11,385
------------------------------------------------------------------------------------------------------------------------------------
Net loans charged off                                                    (64,928)                (23,436)                (23,452)
Provision for loan losses                                                 87,800                  27,226                   3,433
Addition due to purchase transactions                                      3,035                       -                     479
Transfer due to securitizations                                             (182)                      -                       -
------------------------------------------------------------------------------------------------------------------------------------
Balance at end of year                                                $  156,072              $  130,347              $  126,557
====================================================================================================================================
Reserve for loan losses
    as a percentage of loans                                                1.44%                   1.32%                   1.51%
Net charge-offs as a percentage
    of average loans:
        Commercial                                                          1.06%                  (0.12)%                 (0.17)%
        Small business                                                      0.33%                   0.50%                   0.51%
        Consumer                                                            0.38%                   0.49%                   0.62%
        Total loans                                                         0.62%                   0.26%                   0.31%
====================================================================================================================================
</TABLE>

     The methodology used in the periodic review of  reserve adequacy,  which is
performed at  least  quarterly,  is  designed  to  be  dynamic and responsive to
changes in actual credit losses. These changes are reflected in both the general
and unallocated reserves.  The historical loss ratios,  which are key factors in
this analysis,  are  updated  quarterly and are weighted more heavily for recent
charge-off experience.  The review of reserve adequacy is performed by executive
management and presented to the Board of Directors for its review, consideration
and  ratification.

     There were  no significant changes in the composition of the loan portfolio
during 1999, except for the  previously  discussed  decreases in the  commercial
portfolio  and the growth in indirect  lending.  The Company proactively managed
its  problem  loan  exposure  primarily  through  the  sales  of  certain  large
commercial credits at a discount.  Reserve levels increased  during 1999 in view
of the risk profile of the portfolio as indicated by the Company's internal risk
rating  system and based upon  consistent  application of the Company's  reserve
methodology.

     The reserve  coverage of net  charge-offs declined during 1999 to 240% from
556% in  1998 and 540% in 1997.  This  decline was  primarily  due to the higher
level of commercial  net charge-offs  experienced during  1999.  The reserve for
loan losses is  established  to provide  for losses  which are  inherent  in the
portfolio.  Therefore, a comparison of historical  charge-offs  to  the  reserve
is not necessarily an appropriate measure of reserve adequacy,  since the timing
of charge-offs  and recoveries  impacts these ratios.  This is particularly true
with respect  to 1999, since a significant portion of charge-offs relates to the
complete  disposition  through sale of several  large  commercial  credits.

     The year-end 1999  reserve  of  $156.1  million  provided  204% coverage of
nonperforming loans compared to  $130.3 million with 318%  coverage at  year-end
1998 and $126.6 million with 537% coverage at year-end 1997.  As a percentage of
total loans, the reserve for loan losses was 1.44% at December 31, 1999 compared
to  1.32% and  1.51% at  December  31, 1998 and 1997,  respectively.  While  the
reserve for loan losses as a percentage of loans has generally declined over the
past  five years,  the present leve   is considered  adequate to absorb probable
loan losses inherent in the portfolio  considering the level and mix of the loan
portfolio,  current economic  conditions  and market  trends.

     During  2000 the Company  expects to provide less for  loan  losses than in
1999.  Loan  growth, the level of nonperforming  loans, the risk  profile of the
portfolio,  and  the  amounts and  timing  of future cash  flows expected  to be
received on impaired  loans,  will be considered and will impact the estimate of
the reserve for loan losses, and thus the level of the required  provision.

     The  allocation  of  the  December 31, 1999  reserve  for  loan  losses  is
presented  in  Table  8.

<TABLE>
<CAPTION>
=============================================================
TABLE 8 - ALLOCATION OF RESERVE
FOR LOAN LOSSES
=============================================================
December 31, 1999              Reserve for   % of Total
($ in millions)                Loan Losses      Reserve
---------------------------------------------------------------
<S>                              <C>             <C>
Commercial real estate loans     $    3.6          2.3%
Other commercial loans .....         43.7         28.0
Small business loans .......         21.7         13.9
Consumer loans .............         47.6         30.5
Unallocated reserve ........         39.5         25.3
-------------------------------------------------------------
Total ......................     $  156.1        100.0%
=============================================================
</TABLE>

     The   assumptions  and methodologies  used in  allocating  the reserve  for
loan  losses were  unchanged  during  the year.  Allocations  to  the commercial
portfolio increased  as a result of the higher levels of  losses  experienced in
1999.  The  allocation to  the small  business  portfolio  increased,  while the
allocation to the consumer  portfolio declined  as a  result  of  improving loss
experience  in  recent  years.  The  unallocated  reserve  declined  from 29% in
1998 to 25% in 1999 as more reserves were allocated to the commercial portfolio.
This reallocation is consistent with management's expectations and the loan loss
methodology  which weights recent history more heavily and reflects  the current
risk profile of the  portfolio.


Funding Sources

Deposits

     Deposits  are  the Company's  primary source of funding for earning assets.
Hibernia offers a variety of products designed to attract and retain  customers,
with the primary focus on core deposits.  Summaries of average deposit rates and
deposit composition are presented in Table 9 and Table 10,  respectively.

     Average  deposits  totaled  $11.2  billion  in 1999, a $959.0 million  (9%)
increase  from  1998.   Excluding   the  effect  of  the  Beaumont  transaction,
average deposits increased approxi-mately 7%.  Average  core  deposits  were  up
$696.4  million  (8%)  to  $9.1  billion  or  81%  of  total  average  deposits.
Approximately  one-third of this  increase was due to the effect of the Beaumont
transaction.  Average noninterest-bearing  deposits increased $171.5 million and
average  savings grew $570.6  million as a result of the  promotion of products,
including Tower GoldSM Services,  which offers liquidity,  competitive  interest
rates and the security of a bank deposit.

     NOW  account average balances for 1999 increased $13.6 million  compared to
1998 and money market average deposits were up $41.5 million in 1999 compared to
1998. NOW account average balances for 1998 were down $176.1 million compared to
1997,  and money market average deposits were up $227.5 million in 1998 compared
to 1997.  During the fourth quarter of 1995, Hibernia  instituted a new product,
the  Reserve Money  Manager account, in  which each NOW account is joined with a
money  market deposit account.  As needed, funds are moved from the money market
deposit  account to cover  items  presented for payment to  the  customer's  NOW
account up to a  maximum of six  transfers  per statement cycle.  As a result of
additional analysis, the Reserve Money Manager account was enhanced in the first
quarter of 1998  to create a more  efficient sweep  process.  The  effect of the
Reserve  Money  Manager  account on average balances  was  $1,389.1  million  in
1999,  $1,097.0 million in 1998 and $743.9 million in 1997 (reducing NOW account
average  balances and increasing money market deposit account average balances).
Net of this  effect,  NOW account average balances  were up $305.7 million (21%)
in  1999 compared to  1998 and up $177.0 million (14%) in 1998 compared to 1997,
and money market deposit account average balances were down $250.6 million (27%)
in 1999 compared to 1998 and down $125.6 million (12%) in 1998 compared to 1997.

<TABLE>
<CAPTION>
=================================================================
TABLE 9 - AVERAGE DEPOSIT RATES
=================================================================
                                  1999      1998      1997
-----------------------------------------------------------------
<S>                               <C>       <C>       <C>
NOW accounts ...........          2.63%     3.32%     2.77%
Money market
 deposit accounts .......         2.42      2.54      2.58
Savings accounts .......          3.69      3.21      2.89
Other consumer
 time deposits ..........         4.90      5.20      5.23
Public fund certificates
 of deposit of
 $100,000 or more .......         4.92      5.35      5.50
Certificates of deposit
 of $100,000 or more ....         5.21      5.30      5.23
Foreign time deposits ..          4.62      5.04      5.30
=================================================================
  Total interest-bearing
   deposits ...............       4.05%     4.24%     4.26%
=================================================================
</TABLE>

     Average  noncore  deposits increased  $262.6  million (14%) to $2.1 billion
in 1999  compared  to 1998.  Approximately one-third of the  increase was due to
the effect of the Beaumont transaction.  Public fund  certificates of deposit of
$100,000  or  more   increased  $46.8  million  (5%).  Other  large-denomination
certificates  of  deposit  increased  $134.0 million (22%) and foreign  deposits
increased  $81.8  million  (36%).   The  growth   in   other  large-denomination
certificates  of  deposit was  primarily the result of  competitive  pricing and
increased  marketing efforts.  Foreign deposits  were  positively  impacted by a
treasury  management  sweep  product  which moves commercial customer funds into
higher-yielding Eurodollar deposits.  Because of the nature of these funds, they
are  considered  stable  and not subject to the same volatility as other sources
of foreign deposits.

     Total deposits at December 31, 1999 were  $11.9 billion,  up $963.3 million
(9%) from December 31, 1998.  The effect of the Beaumont  transaction  accounted
for  approximately  half of the growth in total deposits.

<TABLE>
<CAPTION>
======================================================================================================================
TABLE 10  -  DEPOSIT COMPOSITION
======================================================================================================================
                                                  1999                    1998                      1997
----------------------------------------------------------------------------------------------------------------------
                                          Average      % of        Average        % of       Average        % of
($ in millions)                          Balances  Deposits       Balances    Deposits      Balances    Deposits
======================================================================================================================
<S>                                    <C>            <C>     <C>               <C>      <C>              <C>
Noninterest-bearing .............      $   2,012.4     18.0%   $   1,840.9       18.0%   $   1,666.9       17.5%
NOW accounts ....................            349.2      3.1          335.6        3.3          511.7        5.4
Money market deposit accounts....          2,073.3     18.5        2,031.8       19.9        1,804.3       19.0
Savings accounts ................          1,688.0     15.1        1,117.4       10.9          806.4        8.5
Other consumer time deposits.....          2,948.3     26.4        3,049.1       29.9        3,061.2       32.2
----------------------------------------------------------------------------------------------------------------------
    Total core deposits .........          9,071.2     81.1        8,374.8       82.0        7,850.5       82.6
----------------------------------------------------------------------------------------------------------------------
Public fund certificates of
  deposit of $100,000 or more ...          1,051.8      9.4        1,005.0        9.8        1,027.2       10.8
Certificates of deposit of
  $100,000 or more ..............            745.7      6.7          611.7        6.0          531.6        5.6
Foreign time deposits ...........            308.5      2.8          226.7        2.2           98.2        1.0
======================================================================================================================
     Total deposits .............      $  11,177.2    100.0%   $  10,218.2      100.0%   $   9,507.5      100.0%
======================================================================================================================
</TABLE>

 Borrowings

     Average borrowings - which include federal funds purchased; securities sold
under  agreements to repurchase  (repurchase agreements); treasury, tax and loan
account;  and  debt-increased  $424.5  million  (28%)  to  $1.9 billion  in 1999
compared to 1998.

     Average federal funds purchased and  treasury, tax and loan borrowings were
$628.8   million  during   1999,  an  increase  of  $233.6  million  from  1998.
Fluctuations  in short-term borrowings  stem from  differences  in the timing of
growth  in the  loan  portfolio  and growth of other funding sources  (deposits,
proceeds  from  maturing  securities and debt).  Average  repurchase  agreements
increased  $62.0  million  in  1999  compared  to 1998.  This increase primarily
resulted from treasury  management  products which sweep funds  from  commercial
customers'  deposit  accounts.

     The  Company's debt at December 31, 1999, which totaled $844.8  million, is
composed of  advances  from  the Federal  Home Loan Bank of Dallas  (FHLB).  The
average  rate on debt during 1999 was 5.58% compared to 5.60% during 1998.  Debt
increased $38.5 million from December 31, 1998 as Hibernia locked in  attractive
fixed rates. During 1999, the FHLB  exercised  its right to call a $100  million
advance,  and a $100  million  advance  reached  maturity.  Replacement  funding
consisted  of a $200  million advance  bearing  a fixed  rate of 5.65% and a $40
million  advance bearing a monthly adjustable rate.  The FHLB may demand payment
of $400  million  in callable  advances at quarterly  intervals,  of  which $200
million is not callable before September  2001 and $200 million is not  callable
before June 2003.  If called prior  to  maturity,  replacement  funding  will be
offered  by  the  FHLB  at  a  then-current  rate.  The  Company's  reliance  on
borrowings,  while  higher than a year ago,  continues  to be within  parameters
determined  by  management to be prudent in terms of liquidity and interest rate
sensitivity.


Interest  Rate  Sensitivity

     Interest rate risk represents the potential impact of interest rate changes
on net income and capital  resulting from  mismatches in repricing opportunities
of assets and  liabilities over a period of time.  A number of tools are used to
monitor and manage interest rate risk, including simulation  models and interest
sensitivity (Gap) analyses.  Management uses simulation  models to estimate  the
effects of changing  interest rates and various  balance sheet strategies on the
level of the Company's net income and capital.  As a means of limiting  interest
rate risk to an acceptable level, management may alter the mix of  floating- and
fixed-rate  assets and liabilities, change pricing  schedules, adjust maturities
through the sale and  purchase of securities  available for sale, and enter into
derivative  contracts.

     The simulation models  incorporate  management's  assumptions regarding the
level of interest rates or balance changes for indeterminate  maturity  deposits
(demand,  NOW,  savings and money market  deposits)  for a given level of market
rate changes.  These  assumptions  have been developed  through a combination of
historical analysis and future expected pricing behavior. Key assumptions in the
simulation   models  include   anticipated   prepayments   on   mortgage-related
instruments, loans and investments; contractual cash flows and maturities of all
financial instruments; deposit sensitivity; and changes in market conditions. In
addition,  the impact of planned growth and anticipated new business is factored
into the simulation models. These assumptions are inherently uncertain, and as a
result,  the models cannot  precisely  estimate net interest income or precisely
predict  the  impact of a change in  interest  rates on net  income or  capital.
Actual results will differ from simulated  results due to the timing,  magnitude
and  frequency  of interest  rate changes and changes in market  conditions  and
management  strategies,  among other factors.

     Hibernia's policy  objective is to limit the impact on net interest income,
from an immediate and sustained change in interest rates of 200 basis points, to
20% of projected  12-month  net income.  Based on the  results of the simulation
models  at  December 31, 1999,  the Company  would expect  an  increase  in  net
interest  income of $3.5 million in the event of an immediate and sustained 200-
basis-point  parallel  interest  rate  increase  and a decrease  in net interest
income of $11.9 million in the event of  an immediate  and sustained  200-basis-
point  parallel  interest rate decrease.  In addition, the Company  projects  an
increase in net interest income of $2.4  million and a decrease of $3.0  million
if  interest   rates  gradually  increase  or  decrease  in  parallel  movement,
respectively,  by 200 basis points over the next year.

     Table 11 presents Hibernia's interest rate sensitivity position at December
31, 1999.  This  Gap  analysis  is  based  on  a  point  in  time and may not be
meaningful  because  assets  and  liabilities must be  categorized  according to
contractual  maturities  and  repricing  periods  rather  than  estimating  more
realistic   behaviors,  as is done  in  the  simulation  models.  Also,  the Gap
analysis  does  not  consider subsequent  changes  in  interest  rate  levels or
spreads  between  asset and liability  categories.

     Although  the Gap  analysis  indicates  the  Company is liability-sensitive
(interest-bearing   liabilities exceed  interest-earning assets) up to one year,
this may not be true in practice.  The 1-30 days deposit category includes  NOW,
money  market  and  savings   deposits   which  have  indeterminate  maturities.
The rates paid on these core deposits, which account for 39% of interest-bearing
liabilities,  do  not  necessarily  reprice in direct relationship to changes in
market interest rates.  In addition, one of Hibernia's deposit  products  is the
consumer  One Way CDSM,  which  gives  the  customer a one-time  opportunity  to
adjust  the rate on  a certificate  of  deposit during its two-year term.  As of
December 31, 1999 these deposits totaled $490.5 million, of which  approximately
$113.1 million had been repriced. Of the remaining $377.4 million, approximately
$361.9  million  are  included in the 1-30 days  other interest-bearing deposits
category  because  they   may  reprice  at any  time.  However,  these  deposits
adjust to market  rates over a much longer  period as depositors  choose when to
exercise  the  option to  adjust  the rate on their deposits.

     In addition to core deposits,  which  serve to lessen the volatility of net
interest  income  in  changing  rate  conditions,  the  Company's loan portfolio
contains  mortgage  loans that have actual cash flows and  maturities  that vary
with the level of interest rates.  Depending on market  interest  rates,  actual
cash flows from these earning assets will vary from the  contractual  maturities
due to payoffs and  refinancing  activity.

      On a limited  basis,  Hibernia  uses derivative  financial  instruments to
manage  interest  rate  exposure.  These instruments involve the risk of dealing
with   counterparties  and  their  ability  to  meet  contractual  terms.  These
counterparties  must  receive a  ppropriate  credit  approval before the Company
enters into an interest  rate  contract.  Notional principal amounts express the
volume of these transactions, although the amounts potentially subject to credit
and  market  risk  are  much  smaller.  Deposit-related  interest rate swaps may
be  entered  into  as  hedges  against  deposits  of  the  same  maturity.   The
differential  to be paid or  received is accrued as interest rates change and is
recognized  as  an  adjustment to interest expens  on  deposits.  There  were no
deposit-related  interest rate swaps at the end of 1999.  The notional amount of
deposit-related  interest rate swaps at the end of 1998 and 1997 totaled  $125.0
million and $100.0  million,  respectively.

<TABLE>
<CAPTION>
====================================================================================================================================
TABLE 11 - INTEREST RATE SENSITIVITY AND GAP ANALYSIS
====================================================================================================================================
                                                                                                          Over 5 Years
December 31, 1999                         1-30       31-60         61-90         91-365       1 Year -      and Non-
($ in thousands)                          Days        Days          Days           Days        5 Years     Sensitive         Total
====================================================================================================================================
<S>                                 <C>           <C>          <C>           <C>            <C>           <C>           <C>
Earning assets:
  Loans..........................   $ 4,517,054   $ 171,251    $  170,247    $ 1,439,606    $ 3,906,770   $   651,748   $10,856,676
  Securities available for sale..     2,660,322           -             -              -              -             -     2,660,322
  Securities held to maturity....         9,393       8,794        10,290         80,505        165,064        26,479       300,525
  Mortgage loans held for sale...        92,704           -             -              -              -             -        92,704
  Other earning assets...........       256,648           -             -              -              -             -       256,648
------------------------------------------------------------------------------------------------------------------------------------
      Total earning assets.......     7,536,121     180,045       180,537      1,520,111      4,071,834       678,227    14,166,875
------------------------------------------------------------------------------------------------------------------------------------
Funding sources:
  NOW accounts...................       340,194           -             -              -              -             -       340,194
  Money market deposit accounts..     2,214,916           -             -              -              -             -     2,214,916
  Savings accounts...............     1,959,181           -             -              -              -             -     1,959,181
  Foreign deposits...............       362,723           -             -             -               -             -       362,723
  Other interest-bearing deposits     1,348,770     459,081       410,363      1,830,992        784,036        60,325     4,893,567
  Short-term borrowings..........     1,102,690           -             -              -              -             -     1,102,690
  Debt...........................            70          71            71        100,641        742,553         1,443       844,849
  Noninterest-bearing sources....             -           -             -              -              -     2,448,755     2,448,755
------------------------------------------------------------------------------------------------------------------------------------
      Total funding sources......     7,328,544     459,152       410,434      1,931,633      1,526,589     2,510,523    14,166,875
------------------------------------------------------------------------------------------------------------------------------------
Repricing/maturity gap:
  Period.........................   $   207,577   $(279,107)   $ (229,897)   $  (411,522)   $ 2,545,245   $(1,832,296)
  Cumulative.....................   $   207,577   $ (71,530)   $ (301,427)   $  (712,949)   $ 1,832,296   $         -
====================================================================================================================================
Gap/total earning assets:
  Period.........................           1.5%       (2.0)%        (1.6)%         (2.9)%         17.9%        (12.9)%
  Cumulative.....................           1.5%       (0.5)%        (2.1)%         (5.0)%         12.9%
====================================================================================================================================
</TABLE>

     Derivative  financial  instruments  are also held or issued by the  Company
for trading  purposes  to provide  customers the  ability to  manage  their  own
interest  rate  sensitivity.  Matched  positions are ordinarily  established  to
minimize risk  to  the  Company.  The  notional  value  of d erivative financial
instruments held for  trading  totaled  $500.3 million at  year-end 1999, $405.0
million at year-end 1998 and $224.3  million at year-end  1997.  In  addition to
these customer-related derivative financial instruments, the Company has entered
into contracts for its own account related to its mortgage origination  activity
which  totaled  $132.5 million,  $333.2  million  and $129.6 million at year-and
1999,  1998  and 1997,  respectively.  Hibernia's  credit exposure to derivative
financial  instruments  held for trading  totaled $5.4  million at December  31,
1999,  $4.0 million at December 31, 1998 and $0.9 million at December 31, 1997.


Net Interest Margin

     The  net  interest  margin  is taxable-equivalent  net interest income as a
percentage of  average  earning  assets.  Net interest  income is the difference
between  total  interest and fee income  generated  by earning  assets and total
interest  expense  incurred  on  interest-bearing liabilities and is affected by
the:

     o volume, yield and mix of earning assets;
     o level of nonperforming  loans;
     o volume,  yield and mix of  interest-bearing  liabilities;
     o amount  of  noninterest-bearing  funds supporting  earning assets;  and
     o interest rate  environment.

     The  net interest  margin is  composed of the  net interest  spread,  which
 measures the  difference between  the  average  yield on earning assets and the
average  rate  paid  on  interest-bearing liabilities,  and  the contribution of
noninterest-bearing funds, which  measures  the  effect  of  noninterest-bearing
funds  (primarily  demand  deposits and  shareholders'  equity) on net  interest
income. In general, the higher the ratio of noninterest-bearing funds supporting
earning assets, the higher  the net  interest  margin.  Hibernia's  noninterest-
bearing funds ratio was 18.61% in 1999  compared to 19.67% in 1998 and 19.92% in
1997.  Table 12 details the  components  of the net interest margin for the past
five  years.

<TABLE>
<CAPTION>
===================================================================================================================
TABLE 12 - NET INTEREST MARGIN (taxable-equivalent)
===================================================================================================================
                                                            1999       1998       1997       1996       1995
===================================================================================================================
<S>                                                        <C>        <C>        <C>        <C>        <C>
Yield on earning assets ...........................         7.83%      8.04%      8.21%      8.22%      8.09%
Rate on interest-bearing liabilities ..............         4.24       4.40       4.34       4.28       4.31
-------------------------------------------------------------------------------------------------------------------
  Net interest spread ...............................       3.59       3.64       3.87       3.94       3.78
Contribution of noninterest-bearing funds .........         0.79       0.87       0.86       0.90       0.90
===================================================================================================================
  Net interest margin ...............................       4.38%      4.51%      4.73%      4.84%      4.68%
===================================================================================================================
Noninterest-bearing funds supporting earning assets        18.61%     19.67%     19.92%     21.03%     21.07%
===================================================================================================================
</TABLE>

     The net interest margin  of 4.38%  in 1999 compares  to  4.51% in  1998 and
4.73% in 1997.  The decline in the net interest margin in 1999 was the result of
a decline in loan yields to 8.29% from 8.63% in 1998, a decline in the  interest
rate spread to 3.59% from 3.64% in 1998,  an  increased use of market-rate funds
and a decline in the  level  of  noninterest-bearing  funds  supporting  earning
assets.  The decline in loan yields and the  interest rate spread are the result
of an increasingly  competitive lending  environment.  The level of noninterest-
bearing funds supporting earning assets decreased 106 basis points to  18.61% in
1999 from 19.67% in 1998.  This change resulted in an eight-basis-point  decline
in the contribution of  noninterest-bearing  funds to the net interest margin to
0.79% in 1999. These negative impacts were partially offset by the change in the
mix of earning assets to proportionately  more loans with  comparatively  higher
yields  than other  earning  assets.  In 1999 loans  amounted  to 77% of average
earning  assets  compared  to 74% in 1998.

     The net interest margin was negatively  impacted (approximately three basis
points) in 1998 due  to a  $3.0 million  adjustment  related to  revenue-sharing
arrangements  with certain  automobile  dealers  brought about by a higher-than-
expected level of consumer  automobile  prepayments.  Borrowers had increasingly
opted to prepay these types of  loans,  resulting  in a decrease in the  reserve
established  to protect  the  Company against  the impact of  prepayments.  This
behavior  was primarily  due  to  economic  and market  conditions,  the current
interest  rate environment  and the ability of  borrowers  to obtain alternative
financing at attractive rates. In addition, the net interest  margin was reduced
approximately two basis  points  in 1998 by the  funding  cost of a  transaction
designed  to utilize capital  losses.  On a normalized  basis,  the net interest
margin would have been 4.56% for 1998.

     The net interest margin was reduced  approximately two basis points in 1997
by the funding cost of a  transaction  designed to utilize capital losses.  From
1997 to 1998, the normalized net interest margin decreased 19 basis points.  The
negative  effects of an  increased  use of  market-rate funds, a decline in loan
yields  to  8.63%  from  8.92%,  a  25-basis-point  decrease  in  the  level  of
noninterest bearing funds  supporting   earning   assets  and  a six-basis-point
increase  in the  cost  of  interest-bearing  liabilities were partially  offset
by the  change  in the  mix of  earning  assets.


Results  of Operations

     The Company earned  $175.1 million, or $1.07 per common share, in 1999.  In
1998 net  income  was  $181.0  million, or $1.11 per common  share, and 1997 net
income was  $147.9 million,  or $.90 per common share.  Net  income  per  common
share - assuming  dilution  was $1.06,  $1.09 and $.89 for 1999,  1998 and 1997,
respectively.

     Operating  results slightly  decreased  in 1999 because of an $87.8 million
provision for loan losses compared to a $27.2 million provision in 1998, a $14.8
million  increase  in  noninterest  expense  and  a  $5.5  million  decrease  in
securities gains. As discussed in the Reserve for Loan Losses section,  the 1999
provision for loan losses exceeded charge-offs by $22.9 million.  These negative
effects  on  operations  were  partially  offset  by a $42.2 million increase in
taxable-equivalent  net interest income resulting from a higher level of earning
assets and a $32.7 million increase in noninterest income (excluding  securities
transactions).

<TABLE>
<CAPTION>
================================================================================================================================
TABLE 13  -  INTEREST-EARNING ASSET COMPOSITION
================================================================================================================================
(Percentage of average balances)                        1999            1998            1997            1996          1995
================================================================================================================================
<S>                                                   <C>             <C>             <C>             <C>           <C>
Loans.......................................           76.7%           74.2%           70.3%           66.7%         58.8%
Securities available for sale...............           20.1            22.1            26.1            30.5          13.3
Securities held to maturity.................            0.2               -               -               -          25.6
--------------------------------------------------------------------------------------------------------------------------------
    Total securities........................           20.3            22.1            26.1            30.5          38.9
--------------------------------------------------------------------------------------------------------------------------------
Short-term investments......................            1.7             2.1             3.0             2.8           2.3
Mortgage loans held for sale................            1.3             1.6             0.6               -             -
================================================================================================================================
    Total interest-earning assets...........          100.0%          100.0%          100.0%          100.0%        100.0%
================================================================================================================================
</TABLE>

     The improvement in net income in 1998 from 1997 was due to a $49.3  million
increase in  taxable-equivalent net interest income, a $27.9 million improvement
in noninterest  income  (excluding securities  transactions)  and a $3.2 million
increase  in  securities  gains.  Partially  offsetting these favorable effects,
1998 results  included  a $27.2 million  provision for loan losses compared to a
$3.4 million  provision in 1997,  an  increase  in  noninterest  expense of $7.3
million and a $15.6 million increase in  income  tax  expense.


Net Interest Income

     Net interest income on a taxable-equivalent basis increased  $42.2 million,
or 8%, to $596.3 million in 1999 from $554.1 million in 1998. Taxable-equivalent
net interest income in 1997 was $504.9 million.  Taxable-equivalent net interest
income increased in 1999 compared to 1998 and in 1998 compared to 1997 primarily
as the  result  of the growth and change in the  mix of  earning assets.

     As  indicated  in  Table  14,  the  change  in  volumes  increased taxable-
equivalent  net interest income  in 1999 by $59.8  million  compared to 1998.  A
$112.1 million increase in  taxable-equivalent interest income due to the growth
in loans was  partially  offset by a $52.0 million  increase in interest expense
due  to  growth  in   interest-bearing liabilities.

<TABLE>
<CAPTION>
================================================================================================================================
TABLE 14 - CHANGES IN TAXABLE-EQUIVALENT NET INTEREST INCOME(1)
================================================================================================================================
                                                     1999 Compared to 1998                     1998 Compared to 1997
--------------------------------------------------------------------------------------------------------------------------------
                                                                Increase (Decrease) Due to Change In:
--------------------------------------------------------------------------------------------------------------------------------
($ in thousands)                                 Volume         Rate         Total       Volume         Rate         Total
================================================================================================================================
<S>                                          <C>          <C>           <C>          <C>          <C>           <C>
Taxable-equivalent interest earned on:
  Commercial loans .....................     $   29,443   $  (18,925)   $   10,518   $   72,196   $   (9,214)   $   62,982
  Small business loans .................         24,785       (6,185)       18,600       19,125       (6,230)       12,895
  Consumer loans .......................         57,828       (7,015)       50,813       48,420       (5,974)       42,446
--------------------------------------------------------------------------------------------------------------------------------
    Loans ..............................        112,056      (32,125)       79,931      139,741      (21,418)      118,323
--------------------------------------------------------------------------------------------------------------------------------
  Securities available for sale ........          1,343            2         1,345       (4,470)      (6,616)      (11,086)
  Securities held to maturity ..........          1,908            -         1,908            -            -             -
--------------------------------------------------------------------------------------------------------------------------------
    Securities .........................          3,251            2         3,253       (4,470)      (6,616)      (11,086)
--------------------------------------------------------------------------------------------------------------------------------
  Short-term investments ...............         (1,359)      (1,749)       (3,108)      (3,511)         844        (2,667)
  Mortgage loans held for sale .........         (2,118)        (193)       (2,311)       9,026          (34)        8,992
--------------------------------------------------------------------------------------------------------------------------------
     Total .............................        111,830      (34,065)       77,765      140,786      (27,224)      113,562
--------------------------------------------------------------------------------------------------------------------------------
Interest paid on:
  NOW accounts .........................            435       (2,399)       (1,964)      (5,487)       2,483        (3,004)
  Money market deposit accounts ........          1,041       (2,659)       (1,618)       5,799         (668)        5,131
  Savings accounts .....................         20,443        5,958        26,401        9,768        2,784        12,552
  Other consumer time deposits .........         (5,133)      (8,989)      (14,122)        (627)        (987)       (1,614)
  Public fund certificates of
    deposit of $100,000 or more ........          2,431       (4,394)       (1,963)      (1,208)      (1,517)       (2,725)
  Certificates of deposit
    of $100,000 or more ................          6,985         (560)        6,425        4,239          363         4,602
  Foreign deposits .....................          3,845       (1,002)        2,843        6,485         (266)        6,219
  Federal funds purchased ..............         11,897       (1,377)       10,520        6,988         (242)        6,746
  Repurchase agreements ................          2,864         (866)        1,998        2,648         (345)        2,303
  Debt .................................          7,196         (130)        7,066       34,504         (404)       34,100
--------------------------------------------------------------------------------------------------------------------------------
     Total .............................         52,004      (16,418)       35,586       63,109        1,201        64,310
--------------------------------------------------------------------------------------------------------------------------------
Taxable-equivalent
  net interest income ..................     $   59,826   $  (17,647)   $   42,179   $   77,677   $  (28,425)   $   49,252
================================================================================================================================
---------------
(1)Change due to mix (both  volume  and rate) has been  allocated  to volume and
   rate  changes in  proportion  to the  relationship  of the  absolute   dollar
   amounts to the changes in each.
</TABLE>

     The change in interest rates caused a decline in   taxable-equivalent   net
interest income of $17.6 million.  Taxable-equivalent interest  income  on loans
declined   $32.1  million  due  to  changes  in yields caused by the competitive
lending environment  and a  change  in the  mix of the loan portfolio.  Interest
expense decreased $16.4 million due to a decrease in the rates paid on interest-
bearing  deposits and a change in the mix of funding sources toward  market-rate
funds.

     Net  interest  income for 1998  was negatively  impacted by a $3.0  million
adjustment  related to  revenue-sharing  arrangements  with  certain  automobile
dealers, discussed in the Net Interest Margin section. In addition, net interest
income  in 1998 and 1997 was reduced by the funding cost of a  transaction  that
utilized  capital loss  carryforwards.  Income of $3.8  million in 1998 and $2.2
million  in  1997  associated  with this transaction is recorded as a securities
gain in noninterest  income rather than in net interest  income.

     For  1998  compared  to 1997,  the change in net volumes increased taxable-
equivalent net interest income by $77.7 million. This increase was primarily the
result of growth in loans adding $139.7  million to taxable-equivalent  interest
income,  partially offset  by a  higher  level of interest-bearing  funds  which
increased interest expense by $63.1 million.  Taxable-equivalent interest income
on loans decreased $21.4 million,  and interest expense  increased  $1.2 million
due to changes in the  interest  rate environment.


Noninterest Income

      Noninterest  income  totaled  $214.7  million  in  1999 compared to $187.4
million in 1998 and $156.4 million in 1997.  Excluding securities  transactions,
noninterest income was up $32.7 million (18%) in 1999 compared to 1998. Included
in noninterest income in 1999 is a $1.7 million gain related to an investment in
a mezzanine financing.

     Net  of the  nonrecurring  item and  securities  transactions,  noninterest
income  was up  $31.1  million (17%).  The effect  of the  Beaumont  transaction
accounted for approximately 25% of the increase in 1999.  The  major  categories
contributing  to  the  increase  in noninterest  income were service  charges on
deposits,  up $10.1 million;  trust fees,  up $6.5  million;  retail  investment
service fees, up $6.3 million; debit/credit card fees, up $3.7 million; mortgage
loan  origination  and  servicing  fees,  up $3.4 million; and ATM fees, up $1.7
million.

<TABLE>
<CAPTION>
============================================================================================================================
TABLE 15 - NONINTEREST INCOME
============================================================================================================================
                                                                                           Percent Increase (Decrease)
----------------------------------------------------------------------------------------------------------------------------
                                                                                                  1999        1998
($ in thousands)                                        1999           1998           1997   over 1998   over 1997
============================================================================================================================
<S>                                               <C>            <C>            <C>              <C>         <C>
Service charges on deposits ..........            $   97,301     $   87,222     $   79,909        11.6%        9.2%
Trust fees ...........................                23,190         16,683         15,535        39.0         7.4
Retail investment service fees........                23,561         17,230         12,070        36.7        42.8
Mortgage loan origination
  and servicing fees .................                18,737         15,366          9,739        21.9        57.8
Other service, collection and
  exchange charges:
  ATM fees ...........................                12,010         10,333          9,030        16.2        14.4
  Debit/credit card fees .............                11,660          7,983          4,919        46.1        62.3
  Other ..............................                12,319         10,351          8,911        19.0        16.2
----------------------------------------------------------------------------------------------------------------------------
     Total other service, collection
       and exchange charges ..........                35,989         28,667         22,860        25.5        25.4
----------------------------------------------------------------------------------------------------------------------------
Other operating income:
  Gain on sales of mortgage loans                      5,578          8,640          3,758       (35.4)      129.9
  Other income .......................                 9,915          7,722          9,806        28.4       (21.3)
----------------------------------------------------------------------------------------------------------------------------
     Total other operating income ....                15,493         16,362         13,564        (5.3)       20.6
----------------------------------------------------------------------------------------------------------------------------
Securities gains, net ................                   432          5,899          2,739       (92.7)      115.4
============================================================================================================================
       Total noninterest income ......            $  214,703     $  187,429     $  156,416        14.6%       19.8%
============================================================================================================================
</TABLE>

     Service charges on deposits  increased $10.1 million (12%) to $97.3 million
in 1999 compared to 1998.  This change was the result of growth in  transaction-
based fees and commercial account analysis fees due to an increase in the number
of accounts.

     Trust  fees  were $23.2 million  in 1999, up $6.5 million (39%) compared to
1998  primarily  due to new business  and the  income  associated  with the $1.4
billion increase in trust assets resulting  from the  Beaumont transaction.  The
effect  of  the Beaumont  transaction  accounted  for  approximately  75% of the
increase in trust fees.

     Retail  investment  service  fees  increased  $6.3  million  (37%) in  1999
compared to 1998.  The  increase is  primarily  due to market  conditions  which
resulted in an increase in the sale of financial  products  including  annuities
and discount  brokerage  services,  and the  availability of insurance  products
throughout  the banking  office  network from business  lines  acquired in 1998.

     Mortgage loan origination and servicing fees were $18.7 million in 1999, up
$3.4 million (22%) compared to 1998.  The  increase in  mortgage fees  primarily
resulted  from  the  Company's  continued  emphasis  on mortgage banking and the
increase in the volume of  mortgage loans  serviced to  $5.4  billion.  In  1999
Hibernia  funded $2.3 billion in  residential  first  mortgages.

     ATM fees increased $1.7 million (16%) to $12.0 million in 1999  compared to
1998 due to the continued  growth of the ATM  network and  the  expansion of ATM
services.

     Debit/credit  card fees were  $11.7  million in  1999,  an increase of $3.7
million (46%)  compared  to 1998.  The  increase  primarily  resulted  from fees
generated by Hibernia's CheckMateSM debit card and Capital Access(C) credit card
for small  businesses.

     Gains  on sales of  mortgage  loans  decreased  $3.1 million  (35%) in 1999
compared to 1998.  As a result of changes in the interest rate environment,  the
Company  experienced an increase in the percentage of adjustable-rate  mortgages
funded and retained.  Generally, Hibernia retains adjustable-rate mortgage loans
and sells fixed-rate mortgage loans,  while  retaining the associated  servicing
rights.

     Securities  gains  decreased $5.5 million (93%) to  $0.4  million  in  1999
compared to 1998.  As previously   mentioned  in  the  Securities  section,  the
Company liquidated high-quality  securities  in  1998  for a gain  and  used the
proceeds  to buy securities with similar  credit quality and a higher yield made
possible by the interest  rate  environment.  This  transaction  resulted  in  a
$1.3  million securities  gain.  The remainder of the  securities  gains in 1998
were primarily the result of the completion of a transaction designed to utilize
capital losses.

     Nonrecurring items in  1997 affect  comparisons of  noninterest income from
1998  to  1997.  In  1997,  nonrecurring  items  included  a $1.2  million  gain
recognized on the sale of Hibernia's  interest in an electronic  funds  transfer
network  and $1.2  million in trading  account  income  resulting  from a single
transaction   related  to  a  tax  planning   strategy.   Excluding   securities
transactions and nonrecurring items,  noninterest income in 1998 increased $30.3
million  (20%)  compared to 1997.  The increase in 1998  noninterest  income was
primarily the result of growth in service charges on deposits, retail investment
service fees,  and mortgage loan  origination  and servicing  fees.


Noninterest Expense

     Noninterest  expense  totaled  $440.9  million  in  1999 compared to $426.2
million in 1998 and $418.9 million in 1997.

     Noninterest expense increased $14.8 million (3%) in 1999  compared to 1998.
Excluding  the effect of the  Beaumont transaction in 1999,  noninterest expense
would  have  increased  $2.4  million (1%) in 1999  compared to 1998.  Excluding
certain  merger-related  expenses  for  both years  and a nonrecurring charge in
1998,  noninterest  expense in  1999 would  have  been $431.9  million,  a $10.9
million (3%) increase from 1998.  Merger-related expenses were $9.0  million and
$3.1  million  in  1999 and 1998,  respectively.  Noninterest  expense  in  1998
included  a  $2.0  million  nonrecurring  charge  related to  asset  write-downs
resulting from activities designed to improve customer delivery  convenience  by
optimizing  an   expanding   banking   office  network.   The  major  categories
contributing  to the  increase  in  noninterest  expense  were  amortization  of
intangibles,  up $6.6 million; data  processing, up $1.9 million; occupancy  and
equipment, up $1.1 million; state taxes on equity, up $0.9 million; professional
fees, up $0.6 million;  and stationery and supplies,  up $0.6 million.

     Staff costs,  which represent the largest component of noninterest expense,
decreased $0.6 million in 1999 compared to 1998.  The Company reduced management
incentives in 1999 and reversed $8.0 million accrued in 1998 related  to a long-
term performance share award for senior management.  The reversal resulted  from
the  failure to meet certain  requirements  necessary to achieve a payout  under
that plan.  In addition, a management  bonus  program  for 1999 affecting a much
larger  group was not  fulfilled  at originally  planned  levels.  Excluding the
effect of  merger-related  expenses, staff costs  decreased $5.4 million (3%) in
1999  compared  to  1998.  Merger-related  expenses  were  $5.1 million and $0.4
million in 1999 and 1998, respectively. Merger-related expenses in 1999 included
the cost of a $4.4 million  stock grant  agreement with two key merger employees
that was in place  several years prior to  negotiation  of the merger agreement.

     Occupancy  and  equipmen  expenses  in  1999  increased  $1.1  million (2%)
compared to 1998.  Excluding the effect of merger-related  expenses and the $2.0
million  charge  in 1998  discussed  above,  occupancy  and  equipment  expenses
increased $1.7 million (3%).

     Data  processing  expenses  increased $1.9 million (6%) to $31.5 million in
1999. Excluding the effect of merger-related expenses, data  processing expenses
increased  $1.6  million  (5%).  The increase  in  data  processing  expenses is
primarily   related  to  continued  improvements  in  technology  and  increased
transaction  volume  related to growth in the Company's  customer base.

     Advertising and  promotional  expenses in 1999 decreased  $1.0 million (6%)
compared to 1998. Excluding the effect of merger-related  expenses,  advertising
and  promotional  expenses  decreased  $0.6 million (4%) primarily due to higher
expenses  in 1998  related to  advertising,  direct  marketing  and  shareholder
communications. Higher expenses in 1998 were the result of opportunities related
to mergers of several  competitors,  the  expansion  of the  franchise  into the
markets of merged companies and the promotion of products, including Tower Super
SavingsSM and Hibernia  CheckMateSM debit card.

     Amortization  of  intangibles, a  noncash  expense, increased $6.6  million
(39%) primarily  due to amortization of goodwill,  core deposit  intangibles and
trust  intangibles associated with the purchase of the  Beaumont  branches.  The
Beaumont transaction resulted in an increase of $62.6 million in goodwill, $12.7
million  in  core deposit intangibles and $17.1  million  in trust  intangibles.
These intangible assets are being amortized over periods from seven to 25 years.
The remainder of the change from 1998 is due to an  increase  of $2.0 million in
the  amortization  of  mortgage  servicing rights  resulting from  the growth in
mortgage lending activity.

<TABLE>
<CAPTION>
========================================================================================================================
TABLE 16 - NONINTEREST EXPENSE
========================================================================================================================
                                                                                       Percent Increase (Decrease)
------------------------------------------------------------------------------------------------------------------------
                                                                                            1999         1998
($ in thousands)                              1999            1998            1997       over 1998    over 1997
========================================================================================================================
<S>                                      <C>             <C>             <C>               <C>          <C>
Salaries ...........................     $ 177,904       $ 182,231       $ 174,243          (2.4)%        4.6%
Benefits ...........................        33,622          29,911          33,475          12.4        (10.6)
------------------------------------------------------------------------------------------------------------------------
  Total staff costs ................       211,526         212,142         207,718          (0.3)         2.1
------------------------------------------------------------------------------------------------------------------------
Occupancy, net .....................        33,388          34,604          34,691          (3.5)        (0.3)
Equipment ..........................        33,465          31,167          31,259           7.4         (0.3)
------------------------------------------------------------------------------------------------------------------------
  Total occupancy and equipment ....        66,853          65,771          65,950           1.6         (0.3)
------------------------------------------------------------------------------------------------------------------------
Data processing ....................        31,503          29,590          26,891           6.5         10.0
Advertising and promotional expenses        14,258          15,226          15,907          (6.4)        (4.3)
Foreclosed property expense, net ...          (866)         (1,019)         (3,173)        (15.0)       (67.9)
Amortization of intangibles ........        23,763          17,138          15,034          38.7         14.0
Telecommunications .................         9,844          11,259          11,437         (12.6)        (1.6)
Postage ............................         7,256           7,216           7,110           0.6          1.5
Stationery and supplies ............         6,344           5,736           6,355          10.6         (9.7)
Professional fees ..................         7,371           6,755          10,539           9.1        (35.9)
State taxes on equity ..............        12,115          11,237           7,681           7.8         46.3
Regulatory expense .................         3,061           2,867           2,953           6.8         (2.9)
Loan collection expense ............         5,003           4,771           4,054           4.9         17.7
Other ..............................        42,890          37,466          40,423          14.5         (7.3)
========================================================================================================================
  Total noninterest expense ........     $ 440,921       $ 426,155       $ 418,879           3.5%         1.7%
========================================================================================================================
Efficiency ratio (1) ...............         54.40%          57.93%          63.61%
========================================================================================================================
Cash-basis efficiency ratio (2).....         52.29%          56.24%          61.53%
========================================================================================================================
----------
(1)Noninterest expense as a percentage of taxable-equivalent net interest income
   plus noninterest income (excluding securities transactions).
(2)Excluding amortization of purchase accounting intangibles.
</TABLE>

     Telecommunications  expense in 1999  totaled  $9.8  million,  a decrease of
$1.4 million (13%) compared to 1998.  Stationery and supplies expense  increased
$0.6 million  (11%) to $6.3 million in 1999.

     Professional fees in 1999 totaled $7.4 million, an increase of $0.6 million
(9%)  compared to 1998.  State taxes on equity  expense  increased  $0.9 million
(8%) to $12.1  million in 1999 due to the growth  in  equity  and  increases  in
millages  used to  assess  those  taxes.

     Noninterest  expense  increased  $7.3   million  (2%) in 1998  compared  to
1997.  Excluding  the effect of merger-related expenses of $3.1  million in 1998
and $14.6 million in 1997, and a nonrecurring item in 1998 previously discussed,
noninterest  expense  increased  $16.8 million (4%) in 1998.  Other  significant
changes in noninterest  expense,  excluding  merger-related  expenses,  included
staff costs, up $7.8 million; data processing,  up $4.4 million;  state taxes on
equity,  up  $3.6  million;  occupancy  and  equipment,  up  $2.2  million;  and
amortization of intangibles,  up $2.1 million.

     The  Company's  efficiency  ratio,  defined  as  noninterest  expense  as a
percentage  of  taxable-equivalent  net interest income plus  noninterest income
(excluding securities transactions),  is  one  measure  of  the  success  of its
efforts to control  costs and generate  income efficiently. The efficiency ratio
for  1999  was  54.40%  compared  to  57.93%  in  1998  and 63.61% in 1997.  The
improvements in the efficiency  ratio reflect  continued higher  revenue  growth
rates  compared to expense  growth rates.  Excluding the merger-related expenses
and  nonrecurring  items discussed previously,  the efficiency  ratio would have
been  53.39%,  57.24% and 61.61% in 1999,  1998 and 1997,  respectively.

     The   cash-basis  efficiency  ratio,  which  excludes  the  impact  of  the
amortization  of  purchase  accounting  intangibles, was 52.29% in 1999 compared
to 56.24% and 61.53% in 1997.  Excluding  the effect of  merger-related expenses
and  nonrecurring  items discussed  previously,  the cash-basis efficiency ratio
would have been 51.28%, 55.55% and 59.52% in 1999, 1998 and 1997, respectively.


Income Taxes

     The Company  recorded a $95.7  million  provision for income  taxes in 1999
compared  to $95.9  million in 1998 and $80.3  million in 1997.

     Hibernia  National Bank  is subject to a Louisiana  shareholders' tax based
partly on income.  The income  portion  is  reported  as state  income  tax.  In
addition,  certain  subsidiaries  of the Company and Hibernia  National Bank are
subject to  Louisiana  state  income  tax.  Effective  January 1, 1999  Hibernia
National Bank of Texas was merged with and into Hibernia National Bank resulting
in one bank in all markets.  The Texas operations of Hibernia  National Bank are
subject to Texas franchise tax.

     Net  future  deductible  temporary  differences  at  December 31, 1999 were
$209.4  million.  The reserve for  loan losses  represents $156.1 million of the
future  deductible  temporary differences.  The provision for  loan losses which
contributed  to  the  reserve  has  been  recognized  as  expense  for financial
reporting purposes but is not deductible for federal  income tax purposes  until
the  loans  are charged off.  Valued  at the 35% federal statutory tax rate, the
net future deductible  amounts,  if ultimately  recognized,  would generate  tax
benefits of $73.3  million.  These benefits are recorded as a deferred tax asset
at December 31, 1999.


Capital

     Capital represents shareholder ownership in the Company - the book value of
assets  in excess  of  liabilities.  It provides a  base for  asset growth while
serving,  together  with  th  reserve  for  loan  losses,  as a  cushion against
potential losses. Support for future asset expansion could come from utilization
of existing  capital, issuance of debt or new capital and retention of earnings.

     Hibernia's  common dividend  payout ratio  (common  dividends declared per-
share divided  by net income per common share) was 40.7% in 1999,  33.8% in 1998
and 36.7% in 1997.

     Shareholders' equity  totaled $1,375.5  million at the end of 1999 compared
to $1,344.6  million at the end of 1998 and $1,220.4 million at the end of 1997.
The  $30.9  million  (2%)  increase  in  1999 was  primarily due to current-year
earnings  totaling  $175.1 million, the issuance of $9.8 million of common stock
($5.4  million of which  related to stock issued  by a pooled  company  prior to
merger) and a $3.1 million change in unearned compensation due to the allocation
of  shares in Hibernia's  Employee Stock Ownership Plan (ESOP).  These increases
were partially  offset by an $82.1 million change in unrealized  gains  (losses)
on securities  available for sale, $68.1  million in  dividends  on common stock
and $6.9 million in dividends on preferred stock. The change in unrealized gains
(losses) is primarily due to a rising  interest  rate  environment.

     The   $124.2   million  (10%)  increase  in  shareholders' equity  in  1998
reflected the Company's $181.0 million in earnings, the issuance of common stock
of $15.5 million and a $12.5 million increase in unrealized gains on  securities
available  for  sale.  These increases were partially offset by common dividends
totaling  $57.5 million,  preferred dividends  totaling $6.9 million and a $20.4
million change in unearned  compensation.  The increase in unearned compensation
is related to the purchase of stock for the ESOP. During 1998 the ESOP completed
its purchase of  the originally  authorized $30.0  million of stock and acquired
an  additional  $15.0 million in stock in a purchase which was  authorized later
that same  year.  As a result, the ESOP acquired  approximately 1,443,000 shares
of stock  during  1998.

     Regulations  applicable  to  national  banks and  their  holding  companies
prescribe  minimum  capital  levels.  These  levels  are  based  on  established
guidelines which relate required capital standards to both  risk-weighted assets
(risk-based capital ratios)  and total  assets (leverage  ratio).  In accordance
with  risk-based guidelines,  assets and off-balance-sheet financial instruments
are  assigned  weights  to  measure  their  levels of risk. The total risk-based
capital ratio for the Company was 11.46%  at year-end  1999,  11.98% at year-end
1998 and 12.51% at year-end  1997.  Leverage  ratios were 8.11%, 8.55% and 8.61%
at year-end 1999, 1998 and 1997,  respectively.  Table 17 shows the  calculation
of capital ratios for the Company for the past five years.

     The  purchase  of  the  Beaumont  branches  during 1999 enabled Hibernia to
leverage its capital by acquiring assets without increasing  equity. As a result
of this  transaction,  leverage and  risk-based capital  ratios declined in 1999
but  still  significantly  exceed the standards  required for  designation of an
institution as "well  capitalized" by regulators.

<TABLE>
<CAPTION>
=====================================================================================================================
TABLE 17 - CAPITAL
=====================================================================================================================
($ in millions)                             1999            1998            1997            1996           1995
---------------------------------------------------------------------------------------------------------------------
<S>                                 <C>             <C>             <C>             <C>             <C>
Risk-based capital:
  Tier 1 ....................       $    1,203.2    $    1,166.0    $    1,042.5    $      932.0    $     874.2
  Total .....................            1,350.7         1,296.3         1,158.4         1,024.9          947.3

Assets:
  Quarterly average assets(1)           14,833.7        13,629.9        12,108.1        10,450.6        8,944.7
  Net risk-adjusted assets ..           11,788.6        10,819.7         9,258.4         7,375.3        5,754.9

Ratios:
  Tier 1 risk-based capital .              10.21%          10.78%          11.26%          12.64%         15.19%
  Total risk-based capital ..              11.46%          11.98%          12.51%          13.90%         16.46%
  Leverage ..................               8.11%           8.55%           8.61%           8.92%          9.77%
=====================================================================================================================
----------
(1)Excluding the adjustment for unrealized gains (losses)on securities available
   for sale and disallowed intangibles.
</TABLE>


Liquidity

     Liquidity  is a  measure of the  ability to fund  loan commitments and meet
deposit maturities and  withdrawals in a  timely and  cost-effective way.  These
needs  can  be met by  generating profits,  attracting new deposits,  converting
assets   (including  short-term  investments,   mortgage  loans  held for  sale,
securities available for sale and loans) to cash and increasing  borrowings.  To
minimize funding risks,  management monitors liquidity through  periodic reviews
of maturity  profiles, yield and rate behaviors, and loan and deposit forecasts.

     Core  deposits that are  maintained at  competitive rates are the Company's
primary  source of liquidity.  Core deposits  totaled $9.5 billion  at  year-end
1999,  up $613.1  million (7%) from $8.9  billion a year earlier.  This increase
is the  result of  Hibernia's  extensive  banking  office network,  aided by the
introduction of new deposit products, and the effect of the Beaumont transaction
in 1999,  which added $331.0 million in core deposits.  As previously  discussed
in  the  Funding  Sources  section,  Hibernia  has  a  large  base  of  treasury
management-related repurchase agreements and foreign deposits that are a part of
total customer relationships.  Because of the nature of the relationships, these
funds  are considered  stable and  not subject  to the same  volatility as other
sources of noncore funds.  Large-denomination certificates of deposit and public
funds were additional  sources of liquidity  during the year.


     Hibernia's  loan-to-deposit  ratio  at  year-end  1999  increased  to 91.6%
compared to 91.0% at year-end 1998 and 83.0% at year-end 1997.  These  increases
primarily resulted  from  significant growth in loans, which outpaced  increases
in the deposit base. A factor contributing to the change in the growth rate from
1998 to 1999  compared  to the  growth  rate from  1997 to 1998 is the effect of
the  Beaumont  transaction  in 1999,  which added $464.8 million in deposits and
$172.0 million in loans (a 37.0% loan-to-deposit ratio).

     Another  indicator of  liquidity is the large liability  dependence  ratio,
which  measures reliance on  short-term borrowings  and other large  liabilities
(including  large-denomination  and  public  fund  certificates of  deposit  and
foreign deposits). Based on average balances, 22.1% of Hibernia's earning assets
were  funded  by  net  large  liabilities  (total  liabilities  less  short-term
investments) at year-end 1999, up approximately 236 basis points from the prior-
year  level of 19.7%.

     Management  believes that the current level of short-term  investments  and
securities  available  for  sale  is  adequate  to  meet the  Company's  current
liquidity  needs.  In  February  1999  Hibernia  National   Bank  established  a
$2.0 billion bank note  program.  Notes issued  under this  program  will mature
30  days or more  after the  date of  issue and bear fixed or floating  interest
rates.  Additional  sources of  liquidity available  to the Company  include the
ability to  issue brokered  certificates of deposit  and the  ability to sell or
securitize a substantial portion of the Company's $2.3 billion residential first
mortgage  portfolio and  $1.3 billion indirect consumer  portfolio.  The Company
also has available Federal funds lines and its membership in the FHLB to further
augment  liquidity  by  providing  a  readily  accessible  source  of  funds  at
competitive rates.

     Hibernia  Corporation (the  "Parent  Company") requires  liquidity  to fund
operating expenses and investments  and to pay  dividends.  At December 31, 1999
the Parent Company had $127.8 million in available funds. During 1999 the Parent
Company  received $77.0 million  in dividends  from its bank  subsidiaries.  The
Parent Company paid $68.1 million in dividends to common  shareholders  and $6.9
million in dividends to preferred  shareholders  and increased its investment in
two of its subsidiaries by a total of $15.5 million.

     The  Consolidated  Statements of  Cash  Flows can  be  used  to  assess the
Company's ability to generate positive future net cash flows from operations and
its ability to meet future  obligations.  The Company had a net decrease in cash
and cash  equivalents  in 1999 of $117.3 million.  This decrease  was the result
of cash  used in  investing  activities  of  $1,035.9 million,  as loans (net of
sales) used cash of $1,365.1 million and purchases of  securities  available for
sale totaled $428.3 million,  partially  offset by $608.2 million from the sales
and maturities of securities available for sale and the maturities of securities
held to maturity.  These activities were partially offset with net cash provided
from  financing  activities  of $436.5  million,  as deposits  provided  cash of
$498.5  million.  Net  cash  provided  by  operating  activities  totaled $482.1
million after  adjusting 1999 net income for noncash items.

     Cash and  cash equivalents  decreased $141.2 million  in 1998. Cash used in
investing activities totaled $1,591.9 million, as loans (net of sales) used cash
of $1,554.2 million and purchases of securities available for sale used $1,833.4
million,  partially  offset by $1,833.1 million from the sales and maturities of
securities  available for sale.  These activities were partially offset with net
cash  provided  from  financing  activities  of  $1,420.2  million,  as deposits
provided cash of $789.6 million,  short-term  borrowings provided $414.2 million
and the proceeds from debt issuance,  net of payments,  totaled $298.8  million.


     Cash and cash equivalents increased $182.7 million in 1997.  Cash  provided
by financing activities totaled $1,405.6  million,  as deposits provided cash of
$632.5 million,  short-term  borrowings provided $376.4 million and the proceeds
from debt issuance,  net of payments,  totaled $447.8  million.  These increases
were  partially  offset by net cash used in  investing  activities  of  $1,348.1
million,  as loans (net of sales) used cash of $1,460.3 million and purchases of
securities  available for sale used $920.3 million,  partially  offset by $994.2
million from sales and  maturities  of securities  available for sale.  Net cash
provided by operating activities totaled $125.3 million after adjusting 1997 net
income for noncash items.


Year 2000

     The Year 2000 issue arose from the fact that many computer  programs stored
and processed  data using two digits rather than four to  define  the applicable
year.   Any  computer   programs  that  have  date-sensitive  software  may have
recognized a date using "00" as the year 1900 rather than the year 2000 upon the
date change.  This issue affected not only Hibernia, but virtually all companies
and organizations that use computer information systems.

     A team composed of Hibernia employees and  representatives of the Company's
third  party data  processor,  Alltel Information Services, Inc., was  formed in
early 1997 to address the Year 2000  issue.  During  1999, the Company completed
its plan to achieve Year 2000  compliance for all mainframe application systems,
local  area  network  application  systems,  departmental and vendor application
systems  and   the  Company's  infrastructure.  Efforts   to  ensure  Year  2000
compliance, which included both the remediation of the  application program code
and the successful  unit testing in an isolated and fully functional environment
occurred  throughout  1999.  In  addition  to  testing  and  making  appropriate
changes to  its internal systems,  the Company discussed the Year 2000 issue and
its  potential  impact on  business  operations with  many of its  customers and
vendors.  The  Company  evaluated the Year 2000  readiness  of  its  significant
borrowers and the resulting  effect on the credit quality of its loan portfolio.
In addition,  the Company  evaluated the Year 2000 readiness of its  significant
depositors  and the  potential  effect  on its  liquidity.  The  status of these
activities  was provided to  Hibernia's  Board of  Directors,  and the Company's
regulators  monitored  Year 2000 efforts.

     The  majority of  the  costs  associated  with  Year 2000  efforts were the
responsibility of the Company's third party data processor  which also  provides
many of the  Company's software  applications. Contract  specifications required
the  Company's  third party  data  processor to ensure that all systems met Year
2000  compliance  and  other  banking  regulations.  Hibernia  supplemented  its
vendors' efforts  with  its  own efforts at a total cost of  approximately  $1.7
million,  most of which was expensed in 1998 and early 1999, in order to upgrade
ATMs,  hardware,  software and other technology.  Year 2000 expenses were spread
throughout  a number  of  noninterest  expense  categories  and did  not include
computer  equipment and software that was scheduled to be replaced in the normal
course  of business.  The Company  did not  separately track the  indirect costs
incurred for  the Year 2000 project,  which primarily consisted of payroll costs
of  employees  from  various  departments.  This  investment  was funded through
operating  cash flows and expensed  as incurred.  The Company does not expect to
incur any additional costs associated with the Year 2000 issue.

     As a result of the efforts and preparations, the Company did not experience
any systematic problems associated with the Year 2000 issue. The Company and its
data  processing  vendors and service  providers  achieved  their  objective  of
allowing Hibernia to conduct business without  interruption.  As a result of the
successful  transition into 2000,  customers were provided  continuous access to
their funds and account  information.  Based upon current analysis,  the Company
does not believe its borrowers,  depositors or vendors to be negatively impacted
by the Year 2000 issue.  The Company will  continue to monitor Year 2000 related
issues and will implement business  resumption plans as necessary;  however,  an
adverse  impact on the  Company's  operations is not  expected.

<PAGE>
<TABLE>
<CAPTION>
Quarterly Consolidated Summary of Income and Selected Financial Data (1)

Hibernia Corporation and Subsidiaries                            1999                                        1998
====================================================================================================================================
($ in thousands, except per-share data)        Fourth      Third     Second      First     Fourth      Third     Second      First
====================================================================================================================================
<S>                                         <C>        <C>        <C>        <C>        <C>        <C>        <C>        <C>
Interest income........................     $ 277,144  $ 270,480  $ 256,613  $ 251,088  $ 251,436  $ 246,738  $ 243,272  $ 236,282
Interest expense.......................       127,929    120,776    111,804    110,011    110,872    112,001    107,087    104,974
------------------------------------------------------------------------------------------------------------------------------------
Net interest income....................       149,215    149,704    144,809    141,077    140,564    134,737    136,185    131,308
Provision for loan losses..............        17,100     28,500     12,200     30,000      9,988      8,089      5,581      3,568
------------------------------------------------------------------------------------------------------------------------------------
Net interest income after
    provision for loan losses..........       132,115    121,204    132,609    111,077    130,576    126,648    130,604    127,740
------------------------------------------------------------------------------------------------------------------------------------
Noninterest income:
   Noninterest income..................        54,996     55,798     52,301     51,176     47,804     46,202     46,579     40,945
   Securities gains (losses), net......            24         (1)       368         41      2,201      2,774         37        887
------------------------------------------------------------------------------------------------------------------------------------
Noninterest income.....................        55,020     55,797     52,669     51,217     50,005     48,976     46,616     41,832
Noninterest expense....................       112,175    100,822    111,587    116,337    106,496    104,668    108,785    106,206
------------------------------------------------------------------------------------------------------------------------------------
Income before taxes....................        74,960     76,179     73,691     45,957     74,085     70,956     68,435     63,366
Income tax expense.....................        26,249     26,711     26,338     16,386     26,098     23,458     24,132     22,198
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
Net income.............................     $  48,711  $  49,468  $  47,353  $  29,571  $  47,987  $  47,498  $  44,303  $  41,168
------------------------------------------------------------------------------------------------------------------------------------
Net income applicable to common
 shareholders..........................     $  46,986  $  47,743  $  45,628  $  27,846  $  46,262  $  45,773  $  42,578  $  39,443
====================================================================================================================================
Per common share information: (2)
   Net income..........................     $    0.30  $    0.30  $    0.29  $    0.18  $    0.29  $    0.29  $    0.27  $    0.25
   Net income - assuming dilution......     $    0.30  $    0.30  $    0.29  $    0.18  $    0.29  $    0.29  $    0.27  $    0.25
   Cash dividends declared.............     $    0.12  $   0.105  $   0.105  $   0.105  $   0.105  $    0.09  $    0.09  $    0.09
Average shares outstanding (000s)......       157,513    157,354    157,186    156,952    156,887    157,342    157,354    157,093
Average shares outstanding -
 assuming dilution(000S)...............       158,741    158,879    158,693    158,952    158,833    159,686    160,241    159,926
Dividend payout ratio..................         40.00%     35.00%     36.21%     58.33%     36.21%     31.03%     33.33%     36.00%
====================================================================================================================================
Selected quarter-end balances
(in millions)
Loans..................................     $10,856.7  $10,876.1  $10,484.8  $10,148.8  $ 9,907.2  $ 9,612.2  $ 9,134.7  $ 8,676.3
Deposits...............................      11,855.9   11,459.6   11,328.9   10,828.9   10,892.6   10,209.1   10,202.8   10,274.8
Debt...................................         844.8    1,045.1      805.3      805.5      806.3      706.7      706.9      707.3
Equity.................................       1,375.5    1,367.1    1,345.1    1,349.6    1,344.6    1,334.9    1,280.9    1,255.5
Total assets...........................      15,314.2   15,045.9   14,734.6   14,283.7   14,329.9   13,590.8   13,143.2   12,869.0
====================================================================================================================================
Selected average balances
(in millions)
Loans..................................     $10,879.0  $10,654.5  $10,279.2  $ 9,998.3  $ 9,714.7  $ 9,331.7  $ 8,897.2  $ 8,527.3
Deposits...............................      11,554.2   11,304.1   11,072.6   10,767.9   10,388.2   10,229.5   10,185.9   10,065.7
Debt...................................         934.0      815.6      805.3      806.0      800.0      706.8      707.1      630.8
Equity.................................       1,372.3    1,353.4    1,356.5    1,356.5    1,333.7    1,301.3    1,268.2    1,241.1
Total assets...........................      15,022.0   14,827.7   14,428.4   14,259.2   13,816.6   13,257.4   12,945.7   12,820.0
====================================================================================================================================
Selected ratios
Net interest margin (taxable-equivalent)         4.34%      4.42%      4.39%      4.35%      4.42%      4.42%      4.61%      4.58%
Annualized return on assets............          1.30%      1.33%      1.31%      0.83%      1.39%      1.43%      1.37%      1.28%
Annualized return on common equity.....         14.77%     15.24%     14.53%      8.86%     15.00%     15.24%     14.58%     13.83%
Annualized return on total equity......         14.20%     14.62%     13.96%      8.72%     14.39%     14.60%     13.97%     13.27%
Efficiency ratio.......................         54.21%     48.30%     55.83%     59.64%     55.69%     56.95%     58.63%     60.67%
Average equity/average assets..........          9.14%      9.13%      9.40%      9.51%      9.65%      9.82%      9.80%      9.68%
Tier 1 risk-based capital ratio........         10.21%      9.99%      9.85%     10.82%     10.78%     11.03%     11.08%     11.29%
Total risk-based capital ratio.........         11.46%     11.24%     11.10%     12.07%     11.98%     12.28%     12.33%     12.54%
Leverage ratio.........................          8.11%      7.97%      7.96%      8.43%      8.55%      8.72%      8.66%      8.54%
====================================================================================================================================
Cash-basis financial data (3)
Net income applicable to
 common shareholders...................     $  50,984  $  51,963  $  48,708  $  30,489  $  48,974  $  48,529  $  45,377  $  42,266
Net income per common share (2)........     $    0.32  $    0.33  $    0.31  $    0.19  $    0.31  $    0.31  $    0.29  $    0.27
Net income per common share -
 assuming dilution (2).................     $    0.32  $    0.33  $    0.31  $    0.19  $    0.31  $    0.30  $    0.28  $    0.26
Annualized return on assets............          1.42%      1.47%      1.41%      0.91%      1.48%      1.53%      1.47%      1.39%
Annualized return on common equity.....         18.92%     19.70%     17.93%     10.98%     18.05%     18.48%     17.89%     17.17%
Efficiency ratio.......................         51.76%     45.72%     54.00%     58.14%     54.12%     55.27%     56.93%     58.84%
Average equity/average assets..........          7.94%      7.89%      8.32%      8.58%      8.67%      8.78%      8.71%      8.57%
====================================================================================================================================
----------
(1)All  financial  information  has  been  restated for mergers accounted for as
   poolings  of interests.  The  effects of mergers  accounted  for as  purchase
   transactions  have been included from the date of consummation. Prior periods
   have been  conformed to  current-period  presentation.
(2)Dividends  per common share are  historical  amounts. For a discussion of net
   income  per common  share  computations  refer to Note 18 of the consolidated
   financial  statements - "Net Income Per  Common  Share  Data."
(3)Excluding  amortization  and  balances of purchase accounting intangibles net
   of applicable taxes.
</TABLE>




<PAGE>
Fourth  Quarter Results

     Hibernia  reported  net income  of  $48.7 million in the fourth quarter  of
1999, a 2% increase  from $48.0  million in the fourth  quarter of 1998 and a 2%
decrease from $49.5 million in the third quarter of 1999.  Net income per common
share of $.30 for the  fourth  quarter of 1999  increased  $.01 from $.29 in the
fourth  quarter of 1998 and remained  unchanged  from the third quarter of 1999.
Net income per common share - assuming  dilution was $.30 in the fourth  quarter
of 1999  compared to $.29 and $.30 for the fourth  quarter of 1998 and the third
quarter of 1999,  respectively.

     Cash-basis  net  income  of $52.7  million  in the  fourth  quarter of 1999
increased 4% from $50.7 million in the fourth quarter of 1998  and decreased  2%
from  $53.7  million  in  the  third  quarter  of  1999.  Cash-basis  net income
per common share of $.32 for the fourth quarter of 1999 increased $.01 from $.31
in the fourth quarter of 1998 and decreased $.01 from the third quarter of 1999.
Fourth quarter 1999 cash-basis  net income per common share - assuming  dilution
was  $.32  compared  to $.31 for the fourth  quarter of 1998  and  $.33  for the
third  quarter  of 1999.

     Net interest income, on a taxable-equivalent  basis, totaled $151.9 million
in the fourth quarter of 1999 compared to $143.4  million in the fourth  quarter
of 1998 and $152.9 million in  the  third quarter of 1999.  Net interest  income
for the fourth  quarter of 1998  was negatively  impacted by the funding cost of
transactions designed to utilize an expiring loss carryforward. The $1.9 million
in  income associated with this  transaction is recorded as  securities gains in
noninterest income rather than in net interest  income.

     The fourth-quarter  1999  increase  in  net interest income compared to the
fourth quarter of 1998 was  primarily the  result of the  effect of the Beaumont
transaction  in  1999  (which  accounted  for  approximately  one-third  of  the
increase)  and  the  growth in  loans  both in  total  and  as a  percentage  of
average  earning  assets.  Average loans  increased $1.2 billion from the fourth
quarter of 1998 to $10.9 billion, or 78.1% of average earning assets compared to
75.2% of average  earning  assets in the fourth  quarter of 1998.  Average loans
increased  $224.5  million in the fourth  quarter of 1999  compared to the third
quarter of 1999. The net interest  spread of 3.54% in the fourth quarter of 1999
was down two basis  points  from the  fourth  quarter  of 1998 and down 11 basis
points from the third quarter of 1999.  The average yield on earning  assets was
7.98%,  up 15 basis points  compared to the fourth  quarter of 1998 and up seven
basis  points  from  the  third  quarter  of  1999.  The  average  rate  paid on
interest-bearing  liabilities  increased  by 17 basis  points  from  the  fourth
quarter of 1998 and 18 basis  points from the third  quarter of 1999 to 4.44% in
the fourth quarter of 1999.

     The  net  interest  margin  decreased eight  basis  points from  the fourth
quarter of 1998  to 4.34% for the  fourth  quarter  of 1999.  A  two-basis-point
increase  in  loan yields  and a 46-basis-point  increase  in securities  yields
led to the  15-basis-point  increase in the yield on earning assets. At the same
time, the  rate on interest-bearing  liabilities increased 17 basis points,  and
the  contribution  of  noninterest-bearing  funds  decreased  six  basi   points
compared to the fourth quarter of 1998.

     The net interest margin of 4.34% for  the  fourth quarter of 1999 decreased
eight  basis  points  from  the  third quarter  of  1999.   A  seven-basis-point
increase  in loan yields  and  a two-basis-point increase in securities resulted
in a seven-basis-point increase in the yield on earning assets.  These increases
were  offset  by an 18-basis-point increase  in  the  rate  on  interest-bearing
liabilities  and  a  15-basis-point  increase in the  cost of  funds  supporting
earning assets.  Table 18 illustrates the components  of the net interest margin
on a quarterly  basis for 1999 and 1998.

<TABLE>
<CAPTION>
=============================================================================================================================
TABLE 18 - NET INTEREST MARGIN  (taxable-equivalent)
=============================================================================================================================
                                                     1999                                        1998
-----------------------------------------------------------------------------------------------------------------------------
                                    Fourth     Third      Second     First      Fourth     Third      Second     First
                                   Quarter    Quarter    Quarter    Quarter    Quarter    Quarter    Quarter    Quarter
=============================================================================================================================
<S>                                 <C>        <C>        <C>        <C>        <C>        <C>        <C>        <C>
Yield on earning assets ....         7.98%      7.91%      7.72%      7.70%      7.83%      8.00%      8.17%      8.19%
Rate on interest-bearing
  liabilities ..............         4.44       4.26       4.11       4.14       4.27       4.47       4.44       4.43
-----------------------------------------------------------------------------------------------------------------------------
     Net interest spread ...         3.54       3.65       3.61       3.56       3.56       3.53       3.73       3.76
Contribution of noninterest-
  bearing funds ............         0.80       0.77       0.78       0.79       0.86       0.89       0.88       0.82
=============================================================================================================================
     Net interest margin ...         4.34%      4.42%      4.39%      4.35%      4.42%      4.42%      4.61%      4.58%
=============================================================================================================================
Noninterest-bearing funds/
  earning assets ...........        17.98%     18.27%     19.07%     19.17%     20.22%     19.89%     19.81%     18.66%
=============================================================================================================================
</TABLE>

     Average earning assets increased $1.0 billion (8%) to $13.9  billion in the
fourth quarter of 1999 from $12.9 billion in the fourth quarter of 1998. Average
earning  assets  were  up $176.3  million (1%) compared to the  third quarter of
1999. Average loans increased $1.2 billion (12%) from the fourth quarter of 1998
and increased $224.5 million (2%) from the third quarter of 1999.  Excluding the
effect  of   the   Beaumont   transaction  in  1999,  average   loans  increased
approximately  10% from the fourth quarter of 1998.  Average securities  for the
fourth  quarter of 1999 totaled $2.8 billion, down $30.9  million  (1%) from the
fourth quarter of 1998 and up $26.6 million (1%) from the third quarter of 1999.

     Average  deposits  increased  $1.2 billion  (11%) to  $11.6 billion  in the
fourth quarter of 1999 from $10.4 billion in the fourth quarter of 1998. Average
deposits  were up $250.1 million (2%) from the third quarter of 1999.  Excluding
the  effect of the  Beaumont  transaction  in 1999, average  deposits  increased
7% from the fourth  quarter  of 1998.

     Noninterest income,  excluding securities transactions,  was $55.0 million,
up $7.2 million (15%) from the fourth quarter of 1998 and down $0.8 million (1%)
from the third quarter of 1999. Excluding the effect of the Beaumont transaction
in 1999,  noninterest  income  would  have  increased  approximately 9% from the
fourth quarter  of 1998.  Service charges on deposits  and  income from mortgage
loan  origination and servicing fees were the  major categories  of  noninterest
income  that  increased  in the  fourth  quarter of 1999  compared to the fourth
quarter of 1998.

     Noninterest  expense of $112.2  million  in the fourth  quarter of 1999 was
$5.7 million (5%) higher  than $106.5  million in the fourth quarter of 1998 and
$11.4 million (11%)  higher than  $100.8 million  in the third quarter  of 1999.
Excluding  the effect of the Beaumont  transaction in 1999,  noninterest expense
would have been virtually unchanged from the fourth quarter of 1998.   Excluding
merger-related  expenses,  noninterest expense would have increased $6.3 million
(6%) from the fourth quarter of 1998.  The increase in noninterest  expense from
the third quarter of 1999 is primarily due to an increase of $11.0 million (26%)
in staff  costs.  During the third  quarter of 1999,  no accrual for  management
incentives was made and $11.3 million accrued in prior periods was reversed.

     In the fourth quarter of 1999 the Company incurred minimal expenses related
to  Year  2000  compliance,  as  virtually  all  expenses  related  to Year 2000
compliance occurred in prior  periods.

     The  Company's  efficiency  ratio was 54.21% in the fourth  quarter of 1999
compared  to 55.69% and 48.30%  in  the fourth quarter  of 1998  and  the  third
quarter  of  1999,  respectively.  The  change  in the efficiency ratio from the
third  quarter  of 1999  primarily  resulted  from the reduction in  staff costs
discussed  earlier.   The  cash-basis   efficiency  ratio,  which  excludes  the
amortization  of  purchase  accounting  intangibles,  was 51.76%  in  the fourth
quarter of 1999  compared to 54.12% in the fourth  quarter of 1998 and 45.72% in
the third quarter of 1999.

     Excluding the effect of merger-related  expenses, the Company's  efficiency
ratio  would have been 54.21%  in the fourth quarter of 1999 compared  to 55.35%
and  48.27%  in  the  fourth  quarter  of 1998  and  the  third quarter of 1999,
respectively.  Excluding  the effect of merger-related expenses,  the cash-basis
efficiency ratio  would have been 51.75% in the fourth quarter of 1999  compared
to 53.77% in the fourth quarter of 1998 and 45.69% in the third quarter of 1999.


     Statements in Management's Discussion and  Analysis  of Financial Condition
and Results of  Operations  that are not  historical  facts should be considered
forward-looking statements with respect to Hibernia.  Forward-looking statements
of  this  type  speak only  as of the date of this  filing.  By nature, forward-
looking  statements involve  inherent risk and  uncertainties.  Various factors,
including,  but  not limited to,  economic  conditions,  asset quality, interest
rates,  loan demand and changes in the  assumptions  used in making the forward-
looking statements,  could cause  actual results to differ materially from those
contemplated by the forward-looking statements.


<PAGE>
<TABLE>
<CAPTION>
Consolidated Average Balances, Interest and Rates
------------------------------------------------------------------------------------------------------------------------------------
Hibernia Corporation and Subsidiaries
Taxable-equivalent basis (1)                                           1999                                      1998
====================================================================================================================================
(Average balances $ in millions,                       Average                                   Average
interest $ in thousands)                               Balance       Interest       Rate         Balance       Interest       Rate
====================================================================================================================================
<S>                                                <C>            <C>               <C>      <C>            <C>               <C>
ASSETS
Interest-earning assets:
  Commercial loans ...                             $   3,863.7    $   306,945       7.94%    $   3,501.9    $   296,427       8.46%
  Small business loans                                 2,238.8        199,326       8.90         1,962.2        180,726       9.21
  Consumer loans ...............................       4,353.3        360,981       8.29         3,657.5        310,168       8.48
------------------------------------------------------------------------------------------------------------------------------------
    Total loans (2).............................      10,455.8        867,252       8.29         9,121.6        787,321       8.63
------------------------------------------------------------------------------------------------------------------------------------
  Securities available for sale.................       2,741.2        174,755       6.38         2,720.1        173,410       6.38
  Securities held to maturity ..................          31.5          1,908       6.06               -              -          -
------------------------------------------------------------------------------------------------------------------------------------
    Total securities ...........................       2,772.7        176,663       6.37         2,720.1        173,410       6.38
------------------------------------------------------------------------------------------------------------------------------------
  Short-term investments .......................         232.5         11,928       5.13           257.1         15,036       5.85
  Mortgage loans held for sale .................         167.2         10,962       6.55           199.5         13,273       6.65
------------------------------------------------------------------------------------------------------------------------------------
    Total interest-earning assets...............      13,628.2    $ 1,066,805       7.83%       12,298.3    $   989,040       8.04%
------------------------------------------------------------------------------------------------------------------------------------
Reserve for loan losses ........................        (147.9)                                   (126.3)
Noninterest-earning assets:
  Cash and due from banks ......................         492.5                                     452.2
  Other assets .................................         664.2                                     588.6
------------------------------------------------------------------------------------------------------------------------------------
    Total noninterest-earning assets                   1,156.7                                   1,040.8
------------------------------------------------------------------------------------------------------------------------------------
    Total assets ...............................   $  14,637.0                               $  13,212.8
====================================================================================================================================

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
  Interest-bearing deposits:
    NOW accounts ...............................   $     349.2    $     9,182       2.63%    $     335.6    $    11,146       3.32%
    Money market deposit accounts ..............       2,073.3         50,083       2.42         2,031.8         51,701       2.54
    Savings accounts ...........................       1,688.0         62,292       3.69         1,117.4         35,891       3.21
    Other consumer time deposits................       2,948.3        144,427       4.90         3,049.1        158,549       5.20
    Public fund certificates of deposit
      of $100,000 or more ......................       1,051.8         51,771       4.92         1,005.0         53,734       5.35
    Certificates of deposit
      of $100,000 or more ......................         745.7         38,823       5.21           611.7         32,398       5.30
    Foreign time deposits ......................         308.5         14,266       4.62           226.7         11,423       5.04
------------------------------------------------------------------------------------------------------------------------------------
      Total interest-bearing deposits...........       9,164.8        370,844       4.05         8,377.3        354,842       4.24
------------------------------------------------------------------------------------------------------------------------------------
  Short-term borrowings:
    Federal funds purchased ....................         628.8         31,824       5.06           395.2         21,304       5.39
    Repurchase agreements ......................         457.7         20,932       4.57           395.7         18,934       4.78
  Debt .........................................         840.5         46,920       5.58           711.6         39,854       5.60
------------------------------------------------------------------------------------------------------------------------------------
    Total interest-bearing liabilities                11,091.8    $   470,520       4.24%        9,879.8    $   434,934       4.40%
------------------------------------------------------------------------------------------------------------------------------------
Noninterest-bearing liabilities:
  Demand deposits ..............................       2,012.4                                   1,840.9
  Other liabilities ............................         173.1                                     205.7
------------------------------------------------------------------------------------------------------------------------------------
    Total noninterest-bearing liabilities.......       2,185.5                                   2,046.6
------------------------------------------------------------------------------------------------------------------------------------
Total shareholders' equity .....................       1,359.7                                   1,286.4
====================================================================================================================================
        Total liabilities and
          shareholders' equity..................   $  14,637.0                               $  13,212.8
====================================================================================================================================
SPREAD AND NET YIELD
Interest rate spread ...........................                                    3.59%                                     3.64%
Cost of funds supporting interest-earning assets                                    3.45%                                     3.53%
Net interest income/margin .....................                  $   596,285       4.38%                   $   554,106       4.51%
====================================================================================================================================
----------------
(1)Based on the statutory income tax rate of 35%.
(2)Yield computations include nonaccrual loans in loans outstanding.
</TABLE>


<TABLE>
<CAPTION>
Consolidated Average Balances, Interest and Rates
------------------------------------------------------------------------------------------------------------------------------------
Hibernia Corporation and Subsidiaries
Taxable-equivalent basis (1)                                           1997                                      1996
====================================================================================================================================
(Average balances $ in millions,                       Average                                   Average
interest $ in thousands)                               Balance       Interest       Rate         Balance       Interest       Rate
====================================================================================================================================
<S>                                                <C>            <C>               <C>      <C>            <C>               <C>
ASSETS
Interest-earning assets:
  Commercial loans..............................   $   2,652.6    $   233,445       8.80%    $   2,286.1    $   209,891       9.18%
  Small business loans..........................       1,756.4        167,831       9.56         1,127.1        106,831       9.48
  Consumer loans................................       3,087.9        267,722       8.67         2,623.1        233,860       8.92
------------------------------------------------------------------------------------------------------------------------------------
    Total loans  (2)............................       7,496.9        668,998       8.92         6,036.3        550,582       9.12
------------------------------------------------------------------------------------------------------------------------------------
  Securities available for sale.................       2,788.7        184,496       6.62         2,759.7        180,058       6.52
  Securities held to maturity...................             -              -          -               -              -          -
------------------------------------------------------------------------------------------------------------------------------------
    Total securities............................       2,788.7        184,496       6.62         2,759.7        180,058       6.52
------------------------------------------------------------------------------------------------------------------------------------
  Short-term investments........................         317.7         17,703       5.57           258.0         13,748       5.33
  Mortgage loans held for sale..................          63.8          4,281       6.71               -              -          -
------------------------------------------------------------------------------------------------------------------------------------
    Total interest-earning assets...............      10,667.1    $   875,478       8.21%        9,054.0    $   744,388       8.22%
------------------------------------------------------------------------------------------------------------------------------------
Reserve for loan losses.........................        (136.5)                                   (161.6)
Noninterest-earning assets:
  Cash and due from banks.......................         449.2                                     394.9
  Other assets..................................         557.8                                     449.4
------------------------------------------------------------------------------------------------------------------------------------
    Total noninterest-earning assets............       1,007.0                                     844.3
------------------------------------------------------------------------------------------------------------------------------------
    Total assets................................   $  11,537.6                               $   9,736.7
====================================================================================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
  Interest-bearing deposits:
    NOW accounts................................   $     511.7    $    14,150       2.77%    $     495.9    $    12,899       2.60%
    Money market deposit accounts...............       1,804.3         46,570       2.58         1,660.4         40,100       2.42
    Savings accounts............................         806.4         23,339       2.89           501.7         10,998       2.19
    Other consumer time deposits................       3,061.2        160,163       5.23         2,738.6        149,820       5.47
    Public fund certificates of deposit
      of $100,000 or more.......................       1,027.2         56,459       5.50           934.6         50,482       5.40
    Certificates of deposit
      of $100,000 or more.......................         531.6         27,796       5.23           412.1         21,443       5.20
    Foreign time deposits.......................          98.2          5,204       5.30            41.8          2,261       5.41
------------------------------------------------------------------------------------------------------------------------------------
      Total interest-bearing deposits...........       7,840.6        333,681       4.26         6,785.1        288,003       4.24
------------------------------------------------------------------------------------------------------------------------------------
  Short-term borrowings:
    Federal funds purchased.....................         265.6         14,558       5.48            51.2          2,643       5.16
    Repurchase agreements.......................         340.5         16,631       4.88           281.8         13,244       4.70
  Debt..........................................          96.0          5,754       6.00            32.2          1,969       6.11
------------------------------------------------------------------------------------------------------------------------------------
    Total interest-bearing liabilities..........       8,542.7    $   370,624       4.34%        7,150.3    $   305,859       4.28%
------------------------------------------------------------------------------------------------------------------------------------
Noninterest-bearing liabilities:
  Demand deposits...............................       1,666.9                                   1,457.4
  Other liabilities.............................         173.1                                     163.0
------------------------------------------------------------------------------------------------------------------------------------
    Total noninterest-bearing liabi1ities.......       1,840.0                                   1,620.4
------------------------------------------------------------------------------------------------------------------------------------
Total shareholders' equity......................       1,154.9                                     966.0
====================================================================================================================================
        Total liabilities and
          shareholders' equity..................   $  11,537.6                               $   9,736.7
====================================================================================================================================
SPREAD AND NET YIELD
Interest rate spread............................                                    3.87%                                     3.94%
Cost of funds supporting interest-earning assets                                    3.48%                                     3.38%
Net interest income/margin......................                  $   504,854       4.73%                   $   438,529       4.84%
====================================================================================================================================
-------------
(1)Based on the statutory income tax rate of 35%.
(2)Yield computations include nonaccrual loans in loans outstanding.
</TABLE>


<TABLE>
<CAPTION>
Consolidated Average Balances, Interest and Rates
---------------------------------------------------------------------------------------------------------------
Hibernia Corporation and Subsidiaries
Taxable-equivalent basis (1)
===============================================================================================================

                                                                                                5-Year
                                                                       1995                    Compound
----------------------------------------------------------------------------------------------Growth Rate
(Average balances $ in millions,                       Average                                For Average
interest $ in thousands)                               Balance       Interest       Rate       Balances
===============================================================================================================
<S>                                                <C>            <C>               <C>          <C>
ASSETS
Interest-earning assets:
  Commercial loans..............................   $   1,890.8    $   182,003       9.63%
  Small business loans..........................         922.3         90,081       9.77
  Consumer loans................................       2,052.6        179,524       8.75
---------------------------------------------------------------------------------------------------------------
    Total loans  (2)............................       4,865.7        451,608       9.28         20.8%
---------------------------------------------------------------------------------------------------------------
  Securities available for sale.................       1,101.8         71,692       6.51         17.5
  Securities held to maturity...................       2,118.4        134,635       6.36        (58.0)
---------------------------------------------------------------------------------------------------------------
    Total securities............................       3,220.2        206,327       6.41         (5.2)
---------------------------------------------------------------------------------------------------------------
  Short-term investments........................         189.3         11,165       5.90         (1.7)
  Mortgage loans held for sale..................             -              -          -            -
---------------------------------------------------------------------------------------------------------------
    Total interest-earning assets...............       8,275.2    $   669,100       8.09%        11.4
---------------------------------------------------------------------------------------------------------------
Reserve for loan losses.........................        (172.1)                                  (5.7)
Noninterest-earning assets:
  Cash and due from banks.......................         376.9                                    5.5
  Other assets..................................         369.9                                   12.0
---------------------------------------------------------------------------------------------------------------
    Total noninterest-earning assets............         746.8                                    8.9
---------------------------------------------------------------------------------------------------------------
    Total assets................................   $   8,849.9                                   11.5%
===============================================================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
  Interest-bearing deposits:
    NOW accounts................................   $     812.5    $    18,031       2.22%       (17.2)%
    Money market deposit accounts...............       1,332.2         35,328       2.65          8.1
    Savings accounts............................         479.6         10,907       2.27         26.7
    Other consumer time deposits................       2,484.9        138,094       5.56          5.9
    Public fund certificates of deposit
      of $100,000 or more.......................        760.2          44,761       5.89          8.8
    Certificates of deposit

      of $100,000 or more.......................         325.9         16,118       4.95         18.5
    Foreign time deposits.......................          35.1          2,018       5.75         78.3
---------------------------------------------------------------------------------------------------------------
      Total interest-bearing deposits...........       6,230.4        265,257       4.26          8.6
---------------------------------------------------------------------------------------------------------------
  Short-term borrowings:
    Federal funds purchased.....................          55.2          3,184       5.77         73.7
    Repurchase agreements.......................         215.5         11,202       5.20         26.0
  Debt..........................................          30.6          2,014       6.58         87.3
---------------------------------------------------------------------------------------------------------------
    Total interest-bearing liabilities..........       6,531.7    $   281,657       4.31%        12.1
---------------------------------------------------------------------------------------------------------------
Noninterest-bearing liabilities:
  Demand deposits...............................       1,350.0                                    9.0
  Other liabilities.............................         137.9                                   (0.4)
---------------------------------------------------------------------------------------------------------------
    Total noninterest-bearing liab1ities........       1,487.9                                    8.1
---------------------------------------------------------------------------------------------------------------
Total shareholders' equity......................         830.3                                   12.9
===============================================================================================================
        Total liabilities and
          shareholders' equity..................   $   8,849.9                                   11.5%
===============================================================================================================
SPREAD AND NET YIELD

Interest rate spread............................                                    3.78%
Cost of funds supporting interest-earning assets                                    3.41%
Net interest income/margin......................                  $   387,443       4.68%
===============================================================================================================
-------------
(1)Based on the statutory income tax rate of 35%.
(2)Yield computations include nonaccrual loans in loans outstanding.
</TABLE>


<PAGE>
GRAPHIC MATERIAL INDEX

GRAPHIC DESCRIPTION                     CROSS REFERENCE
-------------------                     ---------------

Average Earning Asset Mix Pie Chart     See Consolidated Average Balances,
                                             Interest and Rates

Total Loans Bar Graph                   See Five-Year Consolidated Summary of
                                             Income and Selected Financial Data

Total Deposits Bar Graph                See Five-Year Consolidated Summary of
                                             Income and Selected Financial Data

Net Interest Income Bar Graph           See Consolidated Average Balances,
                                             Interest and Rates

Annual Common Dividends Bar Graph       See Five-Year Consolidated Summary of
                                             Income and Selected Financial Data

Total Shareholdres' Equity Bar Graph    See Five-Year Consolidated Summary of
                                             Income and Selected Financial Data




<PAGE>

Report of Ernst & Young LLP, Independent Auditors

The Board of Directors and Shareholders
Hibernia Corporation

We have  audited  the  accompanying  consolidated  balance  sheets  of  Hibernia
Corporation  and  Subsidiaries as of December 31, 1999 and 1998, and the related
consolidated  statements of income,  changes in shareholders'  equity,  and cash
flows for each of the three years in the period ended  December 31, 1999.  These
financial  statements are the  responsibility of the Company's  management.  Our
responsibility  is to express an opinion on these financial  statements based on
our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable  assurance about whether the financial  statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting  the amounts and  disclosures in the financial  statements.  An audit
also includes assessing the accounting principles used and significant estimates
made by  management,  as well as  evaluating  the  overall  financial  statement
presentation.  We believe  that our audits  provide a  reasonable  basis for our
opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all  material  respects,   the  consolidated   financial  position  of  Hibernia
Corporation and Subsidiaries at December 31, 1999 and 1998, and the consolidated
results of their  operations and their cash flows for each of the three years in
the period ended  December 31, 1999, in conformity  with  accounting  principles
generally accepted in the United States.

/s/ Ernst & Young, LLP

New Orleans, Louisiana
January 17, 2000




<PAGE>
<TABLE>
<CAPTION>
========================================================================================================================
Consolidated Balance Sheets

Hibernia Corporation and Subsidiaries
December 31 ($ in thousands)                                                               1999            1998
------------------------------------------------------------------------------------------------------------------------
<S>                                                                                <C>             <C>
Assets
  Cash and cash equivalents ....................................................   $    827,699    $    945,021
  Securities available for sale ................................................      2,660,322       2,761,701
  Securities held to maturity (estimated fair value of $297,072
     at December 31, 1999) .....................................................        300,525               -
  Mortgage loans held for sale .................................................         92,704         281,434
  Loans, net of unearned income ................................................     10,856,676       9,907,194
      Reserve for loan losses ..................................................       (156,072)       (130,347)
------------------------------------------------------------------------------------------------------------------------
          Loans, net ...........................................................     10,700,604       9,776,847
------------------------------------------------------------------------------------------------------------------------
  Bank premises and equipment ..................................................        205,165         194,723
  Customers' acceptance liability ..............................................            108             331
  Other assets .................................................................        527,052         369,827
------------------------------------------------------------------------------------------------------------------------
          Total assets .........................................................   $ 15,314,179    $ 14,329,884
------------------------------------------------------------------------------------------------------------------------

Liabilities
  Deposits:
      Noninterest-bearing ......................................................   $  2,085,322    $  2,065,770
      Interest-bearing .........................................................      9,770,581       8,826,803
------------------------------------------------------------------------------------------------------------------------
          Total deposits .......................................................     11,855,903      10,892,573
------------------------------------------------------------------------------------------------------------------------
  Short-term borrowings ........................................................      1,102,690       1,134,136
  Liability on acceptances .....................................................            108             331
  Other liabilities ............................................................        135,114         151,905
  Debt .........................................................................        844,849         806,337
------------------------------------------------------------------------------------------------------------------------
          Total liabilities ....................................................     13,938,664      12,985,282
------------------------------------------------------------------------------------------------------------------------
Shareholders' equity
Preferred Stock, no par value:
    Authorized - 100,000,000  shares;  2,000,000 Series A issued and outstanding
     at December 31, 1999
     and 1998, respectively ....................................................        100,000         100,000
  Class A Common Stock, no par value:
    Authorized - 300,000,000  shares;  issued and  outstanding - 160,324,729 and
     159,850,398 at December 31, 1999 and
     1998, respectively ........................................................        307,824         306,913
  Surplus ......................................................................        425,185         416,269
  Retained earnings ............................................................        631,314         531,233
  Accumulated other comprehensive income .......................................        (54,122)         27,938
  Unearned compensation ........................................................        (34,686)        (37,751)
------------------------------------------------------------------------------------------------------------------------
          Total shareholders' equity ...........................................      1,375,515       1,344,602
------------------------------------------------------------------------------------------------------------------------
          Total liabilities and shareholders' equity ...........................   $ 15,314,179    $ 14,329,884
========================================================================================================================
----------
See notes to consolidated financial statements.
</TABLE>

<PAGE>
<TABLE>
<CAPTION>
====================================================================================================
Consolidated Income Statements

Hibernia Corporation and Subsidiaries
Year Ended December 31 ($ in thousands, except per-share data) 1999         1998         1997
----------------------------------------------------------------------------------------------------
<S>                                                     <C>            <C>          <C>
Interest income
    Interest and fees on loans ......................   $   862,310    $ 782,939    $ 665,017
    Interest on securities available for sale .......       168,217      166,480      177,703
    Interest on securities held to maturity .........         1,908            -            -
    Interest on short-term investments ..............        11,928       15,036       17,703
    Interest and fees on mortgage loans held for sale        10,962       13,273        4,281
----------------------------------------------------------------------------------------------------
        Total interest income .......................     1,055,325      977,728      864,704
----------------------------------------------------------------------------------------------------
Interest expense
    Interest on deposits ............................       370,844      354,842      333,681
    Interest on short-term borrowings ...............        52,756       40,238       31,189
    Interest on debt ................................        46,920       39,854        5,754
----------------------------------------------------------------------------------------------------
        Total interest expense ......................       470,520      434,934      370,624
----------------------------------------------------------------------------------------------------
Net interest income .................................       584,805      542,794      494,080
    Provision for loan losses .......................        87,800       27,226        3,433
----------------------------------------------------------------------------------------------------
Net interest income after provision for loan losses .       497,005      515,568      490,647
----------------------------------------------------------------------------------------------------
Noninterest income
    Service charges on deposits .....................        97,301       87,222       79,909
    Trust fees ......................................        23,190       16,683       15,535
    Retail investment service fees ..................        23,561       17,230       12,070
    Mortgage loan origination and servicing fees ....        18,737       15,366        9,739
    Other service, collection and exchange charges ..        35,989       28,667       22,860
    Other operating income ..........................        15,493       16,362       13,564
    Securities gains, net ...........................           432        5,899        2,739
----------------------------------------------------------------------------------------------------
        Total noninterest income ....................       214,703      187,429      156,416
----------------------------------------------------------------------------------------------------
Noninterest expense
    Salaries and employee benefits ..................       211,526      212,142      207,718
    Occupancy expense, net ..........................        33,388       34,604       34,691
    Equipment expense ...............................        33,465       31,167       31,259
    Data processing expense .........................        31,503       29,590       26,891
    Advertising and promotional expense .............        14,258       15,226       15,907
    Foreclosed property expense, net ................          (866)      (1,019)      (3,173)
    Amortization of intangibles .....................        23,763       17,138       15,034
    Other operating expense .........................        93,884       87,307       90,552
----------------------------------------------------------------------------------------------------
        Total noninterest expense ...................       440,921      426,155      418,879
----------------------------------------------------------------------------------------------------
Income before income taxes ..........................       270,787      276,842      228,184
Income tax expense ..................................        95,684       95,886       80,289
----------------------------------------------------------------------------------------------------
Net income ..........................................   $   175,103    $ 180,956    $ 147,895
====================================================================================================
Net income applicable to common shareholders ........   $   168,203    $ 174,056    $ 140,995
====================================================================================================
Net income per common share .........................   $      1.07    $    1.11    $     .90
====================================================================================================
Net income per common share - assuming dilution .....   $      1.06    $    1.09    $     .89
====================================================================================================
----------
See notes to consolidated financial statements.
</TABLE>

<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
Consolidated Statements of Changes in Shareholders' Equity

Hibernia Corporation and Subsidiaries
($ in thousands, except per-share data)
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                  Accumulated
                                                                                                     Other
                                                Preferred      Common                  Retained  Comprehensive         Comprehensive
                                                   Stock        Stock      Surplus     Earnings      Income    Other        Income
------------------------------------------------------------------------------------------------------------------------------------
<S>                                               <C>        <C>          <C>          <C>        <C>        <C>          <C>
Balances at December 31, 1996 .................   $100,000   $ 302,839    $ 380,875    $ 322,158  $   8,034  $ (13,887)
Net income for 1997 ...........................          -           -            -      147,895          -          -    $ 147,895
Unrealized gains (losses) on securities,
  net of reclassification adjustments .........          -           -            -            -      7,388          -        7,388
------------------------------------------------------------------------------------------------------------------------------------
Comprehensive income ..........................                                                                           $ 155,283
------------------------------------------------------------------------------------------------------------------------------------
Issuance of common stock:
   Dividend Reinvestment Plan .................          -         418        2,693            -          -        477
   Stock Option Plan ..........................          -       1,068        4,457            -          -        166
   Retirement Security Plan ...................          -          44          265            -          -          -
   Restricted stock awards ....................          -           7           45            -          -          -
   Director compensation ......................          -           -           32            -          -        225
   By pooled companies prior to merger ........          -           -       13,963            -          -          -
Cash dividends declared:
   Preferred ($3.45 per share) ................          -           -            -       (6,900)         -          -
   Common ($.33 per share) ....................          -           -            -      (42,109)         -          -
   By pooled companies prior to merger ........          -           -            -       (6,339)         -          -
Acquisition of treasury stock .................          -           -            -            -          -       (299)
Purchase of common shares by ESOP .............          -           -            -            -          -     (5,021)
Allocation of ESOP shares .....................          -           -          920            -          -        952
------------------------------------------------------------------------------------------------------------------------------------
Balances at December 31, 1997 .................    100,000     304,376      403,250      414,705     15,422    (17,387)
------------------------------------------------------------------------------------------------------------------------------------
Net income for 1998 ...........................          -           -            -      180,956          -          -    $ 180,956
Unrealized gains (losses) on securities,
  net of reclassification adjustments .........          -           -            -            -     12,516          -       12,516
------------------------------------------------------------------------------------------------------------------------------------
Comprehensive income ..........................                                                                           $ 193,472
------------------------------------------------------------------------------------------------------------------------------------
Issuance of common stock:
   Stock Option Plan ..........................          -         949        4,189            -          -          -
   Restricted stock awards ....................          -         870        7,433            -          -          -
   Exercise of purchase warrants ..............          -         409          177            -          -          -
   By pooled companies prior to merger ........          -           -           62            -          -          -
Cash dividends declared:
   Preferred ($3.45 per share) ................          -           -            -       (6,900)         -          -
   Common ($.375 per share) ...................          -           -            -      (56,647)         -          -
   By pooled companies prior to merger ........          -           -            -         (881)         -          -
Purchase of common shares by ESOP .............          -           -            -            -          -    (23,630)
Allocation of ESOP shares .....................          -           -          943            -          -      3,266
Other .........................................          -         309          215            -          -          -
------------------------------------------------------------------------------------------------------------------------------------
Balances at December 31, 1998 .................    100,000     306,913      416,269      531,233     27,938    (37,751)
------------------------------------------------------------------------------------------------------------------------------------
Net income for 1999 ...........................          -           -            -      175,103          -          -    $ 175,103
Unrealized gains (losses) on securities,
  net of reclassification adjustments .........          -           -            -            -    (82,060)         -      (82,060)
------------------------------------------------------------------------------------------------------------------------------------
Comprehensive income ..........................                                                                           $  93,043
------------------------------------------------------------------------------------------------------------------------------------
Issuance of common stock:
   Stock Option Plan ..........................          -         882        4,083            -          -          -
   Restricted stock awards ....................          -          29          172            -          -          -
   By pooled company prior to merger ..........          -           -        5,387            -          -          -
Cash dividends declared:
   Preferred ($3.45 per share) ................          -           -            -       (6,900)         -          -
   Common ($.435 per share) ...................          -           -            -      (67,995)         -          -
   By pooled company prior to merger- .........          -           -            -         (127)         -          -
Allocation of ESOP shares .....................          -           -         (480)           -          -      3,065
Other .........................................          -           -         (246)           -          -          -
------------------------------------------------------------------------------------------------------------------------------------
Balances at December 31, 1999 .................   $100,000   $ 307,824    $ 425,185    $ 631,314  $ (54,122)  $(34,686)
====================================================================================================================================
----------
See notes to consolidated financial statements.
</TABLE>

<PAGE>
<TABLE>
<CAPTION>
========================================================================================================================
Consolidated Statements of Cash Flows

Hibernia Corporation and Subsidiaries
Year Ended December 31 ($ in thousands)                                            1999           1998           1997
------------------------------------------------------------------------------------------------------------------------
<S>                                                                         <C>            <C>            <C>
Operating activities
  Net income ............................................................   $   175,103    $   180,956    $   147,895
  Adjustments to reconcile net income to net
      cash provided by operating activities:
         Provision for loan losses ......................................        87,800         27,226          3,433
         Amortization of intangibles and deferred charges ...............        23,809         16,739         14,566
         Depreciation and amortization ..................................        30,316         30,390         29,336
         Non-cash compensation expense ..................................         4,385             62             43
         Premium amortization, net of discount accretion ................         6,493          4,438          2,972
         Realized securities gains, net .................................          (432)        (5,899)        (2,739)
         Gains on sales of assets, net ..................................        (3,098)        (2,418)        (3,453)
         Provision for losses on foreclosed and other assets ............         1,254            664          2,377
         Decrease (increase) in mortgage loans held for sale ............       188,730       (211,851)       (69,583)
         Decrease (increase) in deferred income tax asset ...............          (814)           722         12,716
         Increase in interest receivable and other assets ...............       (17,667)       (19,716)        (9,314)
         (Decrease) increase in interest payable and other liabilities ..       (13,806)         9,178         (2,964)
------------------------------------------------------------------------------------------------------------------------
       Net cash provided by operating activities ........................       482,073         30,491        125,285
------------------------------------------------------------------------------------------------------------------------
Investing activities
  Purchases of securities available for sale ............................      (428,316)    (1,833,372)      (920,272)
  Proceeds from maturities of securities available for sale .............       391,608      1,058,737        698,527
  Proceeds from maturities of securities held to maturity ...............         2,314              -              -
  Proceeds from sales of securities available for sale ..................       214,315        774,314        295,637
  Net increase in loans .................................................      (883,673)    (1,354,074)    (1,333,356)
  Proceeds from sales of loans ..........................................        83,149          7,932          7,682
  Purchases of loans ....................................................      (564,577)      (208,094)      (134,642)
  Acquisitions, net of cash acquired of $277,702 and $64,095 for the
    years ended December 31, 1999 and 1997, respectively ................       188,552              -         56,563
  Purchases of premises, equipment and other assets .....................       (52,504)       (46,776)       (34,428)
  Proceeds from sales of foreclosed assets and excess bank-owned property        11,069          8,190         14,999
  Proceeds from sales of premises, equipment and other assets ...........         2,174          1,259          1,151
------------------------------------------------------------------------------------------------------------------------
       Net cash used by investing activities ............................    (1,035,889)    (1,591,884)    (1,348,139)
------------------------------------------------------------------------------------------------------------------------
Financing activities
  Net increase in deposits ..............................................       498,483        789,599        632,519
  Net increase (decrease) in short-term borrowings ......................       (31,446)       414,175        376,410
  Proceeds from issuance of debt ........................................       240,000        600,000        500,000
  Payments on debt ......................................................      (201,488)      (301,225)       (52,193)
  Proceeds from issuance of common stock ................................         5,967          5,724          9,539
  Purchase of common stock by ESOP ......................................             -        (23,630)        (5,021)
  Dividends paid ........................................................       (75,022)       (64,428)       (55,362)
  Acquisition of treasury stock .........................................             -              -           (299)
------------------------------------------------------------------------------------------------------------------------
       Net cash provided by financing activities ........................       436,494      1,420,215      1,405,593
------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in cash and cash equivalents ........................      (117,322)      (141,178)       182,739
  Cash and cash equivalents at beginning of year ........................       945,021      1,086,199        903,460
------------------------------------------------------------------------------------------------------------------------
       Cash and cash equivalents at end of year .........................   $   827,699    $   945,021    $ 1,086,199
------------------------------------------------------------------------------------------------------------------------

Supplemental disclosures Cash paid during the year for:
   Interest expense .....................................................   $   486,333    $   437,463    $   373,076
   Income taxes .........................................................   $    90,566    $    87,700    $    64,359
Non-cash investing and financing activities:
   Loans and bank premises and equipment transferred to foreclosed
      assets and excess bank-owned property .............................   $     7,923    $    14,422    $     8,186
   Mortgage loans securitized and retained ..............................   $   511,354    $         -    $         -
   Acquisitions:
      Common stock issued ...............................................   $         -    $         -    $    13,968
      Fair value of assets acquired .....................................   $   554,567    $         -    $   161,762
      Fair value of liabilities assumed .................................   $   465,417    $         -    $   140,262
========================================================================================================================
----------
See notes to consolidated financial statements.
</TABLE>


<PAGE>
Notes to Consolidated Financial Statements

Hibernia Corporation and Subsidiaries

Note 1
Summary of Significant Accounting Policies

         Hibernia  Corporation  (the Parent  Company),  through its wholly owned
subsidiary,  Hibernia  National  Bank  (the  Bank),  provides  a broad  array of
financial  products  and  services  throughout  Louisiana  and East  Texas.  The
principal  products  and  services  offered  include  retail,   small  business,
commercial, international, mortgage and private banking; leasing; private equity
investments;  corporate finance;  treasury management;  insurance; and trust and
investment  management.  The  Bank,  through  wholly  owned  subsidiaries,  also
provides  insurance  products,  retail  brokerage and  alternative  investments,
including  mutual  funds and  annuities.  Effective  January 1,  1999,  Hibernia
National  Bank of Texas was merged  with and into  Hibernia  National  Bank in a
transaction  that was accounted for at  historical  cost in a manner  similar to
that of a pooling-of-interests transaction.

         The  accounting   principles  followed  by  Hibernia   Corporation  and
Subsidiaries  (the  Company  or  Hibernia)  and the  methods of  applying  those
principles  conform with  generally  accepted  accounting  principles  and those
generally practiced within the banking industry.

Consolidation

         The  consolidated  financial  statements  include  the  accounts of the
Parent  Company  and its wholly  owned  subsidiaries:  Hibernia  National  Bank,
Hibernia  Capital  Corporation  (HCC) and Zachary Taylor Life Insurance  Company
(Zachary Taylor).  HCC, a licensed Small Business Investment  Company,  provides
private  equity  investments  to small  businesses.  Zachary Taylor is currently
inactive,  and the Parent Company has an agreement with the Federal Reserve Bank
whereby  Zachary  Taylor will not be actively  operated as an insurance  company
without Federal Reserve Board approval.

         These  consolidated  financial  statements give  retroactive  effect to
mergers  accounted  for as poolings of  interests.  In addition,  the effects of
mergers accounted for as purchase  transactions have been included from the date
of consummation (see Note 2).

         All  significant  intercompany  transactions  and  balances  have  been
eliminated.

Cash and Cash Equivalents

         Cash  and  cash   equivalents   include   cash  and  due  from   banks,
interest-bearing  time  deposits  in  domestic  banks,  federal  funds  sold and
securities purchased under agreements to resell and trading account assets.

Securities

         Management determines the appropriate classification of debt securities
(trading,  available  for sale, or held to maturity) at the time of purchase and
re-evaluates this classification periodically.  Securities classified as trading
account assets are held for sale in anticipation of short-term market movements.
Debt  securities  are  classified  as held to maturity  when the Company has the
positive  intent and ability to hold the securities to maturity.  Securities not
classified as held to maturity or trading are classified as available for sale.

         Securities  classified as trading  account assets are carried at market
value  and are  included  in  short-term  investments.  Gains and  losses,  both
realized and unrealized,  are reflected in earnings as other  operating  income.
Securities  classified  as  held to  maturity  are  stated  at  amortized  cost.
Securities  classified  as  available  for sale are stated at fair  value,  with
unrealized gains and losses,  net of tax,  reported in shareholders'  equity and
included in other comprehensive income.

         The amortized cost of debt securities classified as held to maturity or
available  for sale is adjusted for  amortization  of premiums and  accretion of
discounts to maturity or, in the case of  mortgage-backed  securities,  over the
estimated life of the security.  Amortization,  accretion and accruing  interest
are included in interest  income on  securities  using the  level-yield  method.
Realized  gains and  losses,  and  declines  in value  judged  to be other  than
temporary, are included in net securities gains (losses). The cost of securities
sold is determined based on the specific identification method.

Mortgage Loans Held for Sale

         Mortgage loans held for sale are carried at the lower of aggregate cost
or market value. Market adjustments and realized gains and losses are classified
as other operating income.

<PAGE>
Loans

         Loans are stated at the principal  amounts  outstanding,  less unearned
income and the  reserve for loan  losses.  Interest  on loans and  accretion  of
unearned income are computed by methods which approximate a level rate of return
on recorded  principal.  Loan origination and commitment fees and certain direct
loan  origination  costs are  deferred,  and the net amount is  amortized  as an
adjustment of the related loan's yield over the life of the loan.

         Commercial  and small  business  loans are placed in nonaccrual  status
when, in management's opinion,  there is doubt concerning full collectibility of
both principal and interest.  Commercial and small business nonaccrual loans are
considered to be impaired when it is probable that all amounts due in accordance
with the contractual  terms will not be collected.  Consumer loans are generally
charged  off when any  payment of  principal  or  interest is more than 120 days
delinquent.  Interest  payments  received  on  nonaccrual  loans are  applied to
principal  if  there  is  doubt  as to  the  collectibility  of  the  principal;
otherwise,  these  receipts are recorded as interest  income.  A loan remains in
nonaccrual  status  until it is current as to  principal  and  interest  and the
borrower demonstrates the ability to fulfill the contractual obligation.

Reserve for Loan Losses

         The  reserve  for loan losses is  maintained  to provide  for  probable
credit losses related to specifically  identified  loans and for losses inherent
in the loan  portfolio that have been incurred as of the balance sheet date. The
reserve  related to loans that are identified as impaired is based on discounted
expected future cash flows (using the loan's initial  effective  interest rate),
the  observable  market value of the loan,  or the  estimated  fair value of the
collateral for certain collateral dependent loans.

         The  reserve  for loan  losses  is based on  management's  estimate  of
probable credit losses inherent in the loan portfolio;  actual credit losses may
vary  from the  current  estimate.  The  reserve  for loan  losses  is  reviewed
periodically,  taking into  consideration the risk  characteristics  of the loan
portfolio,  past charge-off  experience,  general economic  conditions and other
factors that warrant current recognition. As adjustments to the reserve for loan
losses  become  necessary,  they are reflected as a provision for loan losses in
current-period   earnings.   Actual  loan  charge-offs  are  deducted  from  and
subsequent recoveries are added to the reserve.

Bank Premises and Equipment

         Bank  premises  and  equipment  are  stated  at cost  less  accumulated
depreciation  and  amortization.  Depreciation  and  amortization  are  computed
primarily using the straight-line  method over the estimated useful lives of the
assets,  which  generally are 10 to 30 years for buildings and 3 to 15 years for
equipment,  and over the  shorter of the lease terms or the  estimated  lives of
leasehold improvements.

Foreclosed Assets and Excess Bank-Owned Property

         Foreclosed  assets  include real estate and other  collateral  acquired
upon the default of loans.  Foreclosed assets and excess bank-owned property are
recorded at the fair value of the assets less estimated  selling  costs.  Losses
arising from the initial  reduction of an outstanding  loan amount to fair value
are deducted from the reserve for loan losses.  Losses arising from the transfer
of bank  premises  and  equipment to excess  bank-owned  property are charged to
expense.  A  valuation  reserve  for  foreclosed  assets and  excess  bank-owned
property   is   maintained   for   subsequent   valuation   adjustments   on   a
specific-property  basis.  Income and expenses associated with foreclosed assets
and excess bank-owned property prior to sale are included in current earnings.

Excess of Cost Over Fair Value of Net Assets Acquired

         The  excess  of  cost  over  the  fair  value  of net  assets  acquired
(goodwill) is being amortized using the straight-line  method over the estimated
periods benefited, generally 25 years.

         As events or changes in circumstances  warrant,  the Company  evaluates
the  realizability of goodwill by geographic region based on a comparison of the
recorded balance of goodwill to the applicable discounted cumulative net income,
before goodwill amortization expense, over the remaining  amortization period of
the associated  goodwill.  To the extent that impairment exists,  write-downs to
realizable value are recorded.

Mortgage Servicing Rights

         Mortgage  servicing  rights are recorded  when  purchased or originated
mortgage  loans are sold  with  servicing  rights  retained.  The fair  value of
capitalized  mortgage  servicing  rights  is  based  upon the  present  value of
estimated  future  cash  flows.  Based upon  current  fair  values,  capitalized
mortgage  servicing  rights are  periodically  assessed for  impairment.  To the
extent that impairment exists, write-downs are recognized in current earnings as
an  adjustment  to  the  corresponding  valuation  allowance.  For  purposes  of
performing its impairment  evaluation,  the portfolio is stratified on the basis
of  certain  risk  characteristics  including  origination  date,  loan type and
interest  rate.  Capitalized  mortgage  servicing  rights are amortized over the
period of estimated net servicing income, which considers appropriate prepayment
assumptions.

<PAGE>
Income Taxes

         The Parent Company and its  subsidiaries  file a  consolidated  federal
income tax return.  The Company  accounts for income  taxes using the  liability
method.  Temporary  differences  occur between the  financial  reporting and tax
bases of assets  and  liabilities.  Deferred  tax  assets  and  liabilities  are
recorded for these  differences based on enacted tax rates and laws that will be
in effect when the differences are expected to reverse.

         Hibernia  National  Bank is subject to a Louisiana  shareholders'  tax,
which is based partly on income.  The income portion is reported as state income
tax. In  addition,  certain  subsidiaries  of the Parent  Company  and  Hibernia
National Bank are subject to Louisiana  state income tax.  Effective  January 1,
1999, Hibernia National Bank of Texas was merged with and into Hibernia National
Bank,  resulting in one bank in all markets.  The Texas  operations  of Hibernia
National Bank are subject to Texas franchise tax.

Derivative Financial Instruments

         The  Company  may  enter  into  derivative  financial  instruments  for
purposes  other than  trading to assist in the  management  of its  exposure  to
interest  rate  risk.  Derivative  financial  instruments  used  for  asset  and
liability hedges are recorded using the accrual method of accounting. Under this
method,  the  expected  differential  to be paid or  received  is accrued in the
appropriate  income or expense caption on the income statement (i.e., hedge of a
loan in interest income,  hedge of a deposit or debt in interest  expense).  The
fair  value of these  instruments  and the  changes  in the fair  value  are not
recognized in the financial statements.  In addition, the Company may enter into
derivative  financial  instruments to manage its exposure to changes in interest
rates on the market value of its securities available for sale portfolio.  These
instruments  are recorded using the fair value method of accounting.  Under this
method, gains and losses are recognized, net of tax, in shareholders' equity and
are included in other comprehensive income.

         The Company may also enter into  derivative  financial  instruments for
trading purposes.  These instruments are recorded using the fair value method of
accounting.  Changes  in the fair value of these  instruments  are  recorded  in
noninterest income.

Use of Estimates

         The  preparation of financial  statements in conformity  with generally
accepted  accounting  principles  requires  management  to  make  estimates  and
assumptions  that affect the  amounts  reported  in the  consolidated  financial
statements  and  accompanying  notes.  Actual  results  could  differ from those
estimates.

Reclassification

         Certain items  included in the  consolidated  financial  statements for
1998 and 1997 have been reclassified to conform with the 1999 presentation.

Recent Accounting Pronouncements

         In June 1998, the Financial  Accounting  Standards  Board (FASB) issued
Statement of Financial  Accounting  Standards  (SFAS) No. 133,  "Accounting  for
Derivative  Instruments  and Hedging  Activities."  This  statement  establishes
accounting and reporting standards for derivative instruments, including certain
derivative instruments embedded in other contracts,  and for hedging activities.
Subsequently,   the  FASB  issued  SFAS  No.  137,  "Accounting  for  Derivative
Instruments  and Hedging  Activities  - Deferral of the  Effective  Date of FASB
Statement No. 133," which defers the effective  date of SFAS No. 133 to apply to
all financial statements for years beginning after June 15, 2000. Because of the
limited use of derivatives,  management does not anticipate that the adoption of
SFAS No. 133 will have a material impact on the financial condition or operating
results of the Company.


<PAGE>
Note 2
Mergers
         The  Company   completed   mergers   with  two  East  Texas   financial
institutions in 1997 which were accounted for as poolings of interests. In 1998,
the  Company  completed  mergers  with  four  financial  institutions,  three in
Louisiana and one in East Texas,  all of which were accounted for as poolings of
interests. In 1999, the Company completed a merger with one East Texas financial
institution  which was accounted for as a pooling of interests.  Additionally in
1999,  the  Company  purchased  the assets and assumed  the  liabilities  of the
Beaumont  branches  of Chase  Bank of  Texas,  N.A.  Completed  mergers  include
Executive  Bancshares,  Inc.  (Executive) and Unicorp  Bancshares - Texas,  Inc.
(Unicorp)  in  1997;  Northwest  Bancshares  of  Louisiana,   Inc.  (Northwest),
ArgentBank  (Argent),  Firstshares  of Texas,  Inc.  (Firstshares)  and  Peoples
Holding Corporation  (Peoples) in 1998; and MarTex Bancshares,  Inc. (MarTex) in
1999.

         The  institutions  with  which  the  Company  merged  are  collectively
referred to as the "merged  companies."  The merged  companies  in  transactions
accounted  for  as  poolings  of  interests  are  referred  to  as  the  "pooled
companies,"  and  institutions  in  transactions  accounted for as purchases are
referred to as the "purchased companies."

         The  following  table  shows the  merger  date,  consideration  issued,
exchange ratio and accounting method for each merger.

<TABLE>
<CAPTION>
====================================================================================================================================
                                                                                                   Exchange
                                                           Merger Date         Consideration(1)      Ratio      Accounting Method
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                        <C>               <C>                   <C>         <C>
Executive ..............................................   August 31, 1997     1,161,680 shares     15.85:1    Pooling of interests
Unicorp ................................................   November 7, 1997    2,233,388 shares      1.60:1    Pooling of interests
Northwest ..............................................   January 1, 1998     1,508,019 shares      3.90:1    Pooling of interests
Argent .................................................   February 1, 1998   13,317,236 shares      2.04:1    Pooling of interests
Firstshares ............................................   March 15, 1998      3,690,615 shares      7.15:1    Pooling of interests
Peoples ................................................   July 1, 1998        3,562,367 shares      9.50:1    Pooling of interests
MarTex .................................................   March 8, 1999       3,450,000 shares      0.25:1    Pooling of interests
Beaumont branches of
     Chase Bank of Texas, N.A ..........................   May 21, 1999             $87,000,000         N/A    Purchase
------------------------------------------------------------------------------------------------------------------------------------
----------
(1)All shares issued were Hibernia Class A Common Stock.
====================================================================================================================================
</TABLE>

         The  following  table  shows  the  key  components  of the  results  of
operations of the pooled companies.

<TABLE>
<CAPTION>
================================================================================
                               Hibernia         1998    1999 Pooled
                            (originally       Pooled        Company
($ in thousands)              reported)  Companies(1       (MarTex)     Total
--------------------------------------------------------------------------------
Year ended December 31, 1998
--------------------------------------------------------------------------------
<S>                            <C>           <C>           <C>       <C>
Net interest income ........   $530,534      $     -       $12,260   $542,794

Net income .................   $178,629      $     -       $ 2,327   $180,956
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Year ended December 31, 1997
--------------------------------------------------------------------------------
Net interest income ........   $427,757      $54,279       $12,044   $494,080

Net income .................   $137,389      $ 7,407       $ 3,099   $147,895
--------------------------------------------------------------------------------
----------
(1)Results  of operations  for the year ended  December 31, 1998 are included in
Hibernia's results.
================================================================================
</TABLE>


<PAGE>
         Under the purchase method of accounting,  the assets and liabilities of
the Beaumont  branches  were adjusted to their  estimated  fair values as of the
purchase date. The excess of cost over the fair value of net assets acquired was
$62.6 million and is being amortized on a straight-line  basis over 25 years. In
addition,  intangibles  of $12.7  million  related  to core  deposits  and $17.1
million  related to trust  business were recorded and are being  amortized on an
accelerated basis over  approximately  seven years. The following table presents
unaudited  pro forma  information  giving effect to the purchase of the Beaumont
branches as if the  transaction  had  occurred at the  beginning  of each period
presented.  The effect of anticipated  savings resulting from the merger has not
been included in the pro forma  information.  Unaudited pro forma information is
not necessarily indicative of future results.

<TABLE>
<CAPTION>
===============================================================================================
($ in thousands, except per-share data)                      Year Ended December 31
===============================================================================================
                                                         1999          1998          1997
-----------------------------------------------------------------------------------------------
<S>                                               <C>           <C>           <C>
Net interest and noninterest income ...........   $   810,539   $   760,325   $   679,191

Net income ....................................   $   173,565   $   179,928   $   146,498

Net income per common share ...................   $      1.06   $      1.10   $      0.89

Net income per common share - assuming dilution   $      1.05   $      1.08   $      0.88
===============================================================================================
</TABLE>

         Hibernia is a party to a definitive  merger  agreement with  Southcoast
Capital, L.L.C. (Southcoast) which is pending regulatory approval. Southcoast is
a full-service  investment  banking firm  providing  corporate  finance,  equity
research,   institutional  equity  sales  and  trading  services.   The  Company
anticipates  that this merger will be  consummated in the second quarter of 2000
and that it will be accounted for as a purchase transaction.


Note 3
Cash and Cash Equivalents
         The following is a summary of cash and cash equivalents.

<TABLE>
<CAPTION>
================================================================================
($ in thousands)                                             December 31
--------------------------------------------------------------------------------
                                                            1999       1998
--------------------------------------------------------------------------------
<S>                                                     <C>        <C>
Cash and due from banks .............................   $571,051   $567,057
Short-term investments:
     Federal funds sold .............................    167,050    224,580
     Securities purchased under agreements to resell      85,000    147,991
     Interest-bearing time deposits in domestic banks      4,598      5,393
--------------------------------------------------------------------------------
          Total short-term investments ..............    256,648    377,964
--------------------------------------------------------------------------------
          Total cash and cash equivalents ...........   $827,699   $945,021
================================================================================
</TABLE>

<PAGE>
Note 4
Securities
         The  following is a summary of  securities  classified as available for
sale and held to maturity.  The Company had no securities  classified as held to
maturity during 1998.

<TABLE>
<CAPTION>
===================================================================================================================
($ in thousands)                                                                December 31, 1999
-------------------------------------------------------------------------------------------------------------------
                                                                    Amortized      Fair   Unrealized  Unrealized
Type                                                                     Cost      Value       Gains      Losses
-------------------------------------------------------------------------------------------------------------------
<S>                                                                <C>          <C>          <C>         <C>
Available for sale:
     U.S. Treasuries ...........................................   $  278,869   $  276,973   $   115     $ 2,011
     U.S. government agencies:
          Mortgage-backed securities ...........................    1,020,715      997,758     4,291      27,248
          Bonds ................................................    1,122,229    1,065,331       215      57,113
     States and political subdivisions .........................      225,098      224,442     1,890       2,546
     Other .....................................................       96,675       95,818       184       1,041
-------------------------------------------------------------------------------------------------------------------
          Total securities available for sale ..................   $2,743,586   $2,660,322   $ 6,695     $89,959
-------------------------------------------------------------------------------------------------------------------
Held to maturity:
     U.S. government agencies:
          Mortgage-backed securities ...........................   $  300,525   $  297,072   $   557     $ 4,010
-------------------------------------------------------------------------------------------------------------------
          Total securities held to maturity ....................   $  300,525   $  297,072   $   557     $ 4,010
-------------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------------
($ in thousands)                                                                December 31, 1998
-------------------------------------------------------------------------------------------------------------------
                                                                    Amortized      Fair   Unrealized  Unrealized
Type                                                                     Cost      Value       Gains      Losses
-------------------------------------------------------------------------------------------------------------------
Available for sale:
     U.S. Treasuries ...........................................   $  253,423   $  257,608   $ 4,185     $     -
     U.S. government agencies:
          Mortgage-backed securities ...........................    1,007,913    1,019,708    14,928       3,133
          Bonds ................................................    1,136,711    1,153,179    18,349       1,881
     States and political subdivisions .........................      245,489      255,815    10,528         202
     Other .....................................................       75,203       75,391       188           -
-------------------------------------------------------------------------------------------------------------------
          Total securities available for sale ..................   $2,718,739   $2,761,701   $48,178     $ 5,216
===================================================================================================================
</TABLE>

         The  following is a summary of realized  gains and losses from the sale
of securities available for sale.

<TABLE>
<CAPTION>
=================================================================
($ in thousands)             Year Ended December 31
-----------------------------------------------------------------
                           1999       1998       1997
-----------------------------------------------------------------
<S>                       <C>      <C>        <C>
Realized gains ........   $ 465    $ 6,356    $ 2,894
Realized losses .......     (33)      (457)      (155)
-----------------------------------------------------------------
     Net realized gains   $ 432    $ 5,899    $ 2,739
=================================================================
</TABLE>

<PAGE>
         Securities with carrying values of $2,802,414,000 and $2,587,140,000 at
December 31, 1999 and 1998, respectively, were pledged to secure public or trust
deposits or were sold under repurchase agreements.

<TABLE>
<CAPTION>
================================================================================
($ in thousands)                                              December 31
--------------------------------------------------------------------------------
                                                             1999         1998
--------------------------------------------------------------------------------
<S>                                                    <C>          <C>
Available for sale:
     U.S. Treasuries ...............................   $  276,973   $  257,608
     U.S. government agencies:
          Mortgage-backed securities ...............      994,715      993,041
          Bonds ....................................    1,061,737    1,143,460
     States and political subdivisions .............      165,699      192,024
     Other .........................................        2,765        1,007
--------------------------------------------------------------------------------
          Total available for sale .................    2,501,889    2,587,140
--------------------------------------------------------------------------------
Held to maturity:
     U.S. government agencies:
          Mortgage-backed securities ...............      300,525            -
--------------------------------------------------------------------------------
          Total held to maturity ...................      300,525            -
--------------------------------------------------------------------------------
          Total carrying value of pledged securities   $2,802,414   $2,587,140
================================================================================
</TABLE>

         The amortized  cost and estimated  fair value by maturity of securities
are shown in the following table.  Securities are classified  according to their
contractual   maturities  without   consideration  of  principal   amortization,
potential prepayments or call options. Accordingly, actual maturities may differ
from contractual maturities.

<TABLE>
<CAPTION>
================================================================================
($ in thousands)                                  December 31, 1999
--------------------------------------------------------------------------------
                                                 Amortized         Fair
                                                      Cost        Value
--------------------------------------------------------------------------------
<S>                                             <C>          <C>
Available for sale:
     Due in 1 year or less ..................   $  270,054   $  268,611
     Due after 1 year through 5 years .......      454,657      447,608
     Due after 5 years through 10 years .....      979,188      938,272
     Due after 10 years .....................    1,039,687    1,005,831
--------------------------------------------------------------------------------
          Total securities available for sale   $2,743,586   $2,660,322
--------------------------------------------------------------------------------
Held to maturity:
     Due after 5 years through 10 years .....   $    6,313   $    5,855
     Due after 10 years .....................      294,212      291,217
--------------------------------------------------------------------------------
          Total securities held to maturity..   $  300,525   $  297,072
================================================================================
</TABLE>


<PAGE>
Note 5
Loans
         The  following  is a summary of  commercial  and small  business  loans
classified by repayment source and consumer loans classified by type.

<TABLE>
<CAPTION>
================================================================================
($ in thousands)                                             December 31
--------------------------------------------------------------------------------
                                                           1999         1998
--------------------------------------------------------------------------------
<S>                                                 <C>           <C>
Commercial:
     Commercial and industrial ..................   $ 1,501,038   $1,371,174
     Services industry ..........................       955,418    1,055,589
     Real estate ................................       434,232      457,427
     Health care ................................       298,070      306,522
     Transportation, communications and utilities       228,614      211,986
     Energy .....................................       192,587      421,998
     Other ......................................        83,349       55,140
--------------------------------------------------------------------------------
          Total commercial ......................     3,693,308    3,879,836
--------------------------------------------------------------------------------
Small Business:
     Commercial and industrial ..................       823,369      770,811
     Services industry ..........................       539,585      440,194
     Real estate ................................       340,190      274,661
     Health care ................................       150,818      107,616
     Transportation, communications and utilities        91,947       82,175
     Energy .....................................        43,652       46,312
     Other ......................................       372,305      347,975
--------------------------------------------------------------------------------
          Total small business ..................     2,361,866    2,069,744
--------------------------------------------------------------------------------
Consumer:
     Residential mortgages:
          First mortgages .......................     2,263,405    1,915,562
          Junior liens ..........................       282,123      190,073
     Indirect ...................................     1,277,294      850,501
     Revolving credit ...........................       374,152      325,788
     Other ......................................       604,528      675,690
--------------------------------------------------------------------------------
          Total consumer ........................     4,801,502    3,957,614
--------------------------------------------------------------------------------
          Total loans ...........................   $10,856,676   $9,907,194
================================================================================
</TABLE>

         The following is a summary of nonperforming  loans,  foreclosed  assets
and excess bank-owned property.  For a discussion of private equity investments,
refer to Note 23 - "Hibernia Corporation."

<TABLE>
<CAPTION>
============================================================
($ in thousands)                      December 31
------------------------------------------------------------
                                     1999      1998
------------------------------------------------------------
<S>                               <C>       <C>
Nonaccrual loans ..............   $76,461   $40,940
Restructured loans ............         -         -
------------------------------------------------------------
     Nonperforming loans ......    76,461    40,940
------------------------------------------------------------
Foreclosed assets .............     7,710    10,762
Excess bank-owned property ....     4,197     2,648
------------------------------------------------------------
     Total nonperforming assets   $88,368   $54,350
============================================================
</TABLE>

         At December 31, 1999 and 1998,  the recorded  investment  in loans that
were considered to be impaired was $69,997,000  and  $37,191,000,  respectively.
Included  in the  1999  and  1998  amounts  were  $65,896,000  and  $33,226,000,
respectively,  of impaired  loans for which the related  reserve for loan losses
was  $17,244,000 and  $9,798,000,  respectively.  At December 31, 1999 and 1998,
impaired  loans  that  did not  have a  reserve  for  loan  losses  amounted  to
$4,101,000 and  $3,965,000,  respectively.  The average  recorded  investment in
impaired  loans  during the years ended  December  31,  1999,  1998 and 1997 was
approximately $60,834,000, $26,911,000 and $16,466,000, respectively.

<PAGE>
         Interest  payments  received on impaired loans are applied to principal
if there is doubt as to the  collectibility of the principal;  otherwise,  these
receipts are recorded as interest income. For the years ended December 31, 1999,
1998 and 1997,  the Company  recognized  interest  income on  impaired  loans of
$3,145,000, $1,682,000 and $1,199,000, respectively.

         Interest  income in the amount of $6,723,000  for 1999,  $3,291,000 for
1998 and $2,057,000 for 1997 would have been recorded on nonperforming  loans if
they had  been  classified  as  performing.  The  Company  recorded  $3,145,000,
$1,682,000 and $1,199,000 of interest income on nonperforming loans during 1999,
1998 and 1997, respectively.

         The following is a summary of activity in the reserve for loan losses.

<TABLE>
<CAPTION>
===================================================================================
($ in thousands)                                    Year Ended December 31
-----------------------------------------------------------------------------------
                                                  1999         1998         1997
-----------------------------------------------------------------------------------
<S>                                          <C>          <C>          <C>
Balance at beginning of year .............   $ 130,347    $ 126,557    $ 146,097
     Loans charged off ...................     (83,366)     (40,888)     (46,417)
     Recoveries ..........................      18,438       17,452       22,965
-----------------------------------------------------------------------------------
          Net loans charged off ..........     (64,928)     (23,436)     (23,452)
-----------------------------------------------------------------------------------
     Provision for loan losses ...........      87,800       27,226        3,433
     Addition due to purchase transactions       3,035            -          479
     Transfer due to securitizations .....        (182)           -            -
-----------------------------------------------------------------------------------
Balance at end of year ...................   $ 156,072    $ 130,347    $ 126,557
===================================================================================
</TABLE>


<PAGE>
Note 6
Bank Premises and Equipment
         The  following  tables  detail bank  premises and equipment and related
depreciation and amortization expense.

<TABLE>
<CAPTION>
================================================================================
($ in thousands)                                            December 31
--------------------------------------------------------------------------------
                                                         1999            1998
--------------------------------------------------------------------------------
<S>                                                 <C>             <C>
Land .........................................      $  38,632       $  37,904
Buildings ....................................        190,285         179,860
Leasehold improvements .......................         33,946          30,660
Furniture and equipment ......................        149,169         131,682
--------------------------------------------------------------------------------
                                                      412,032         380,106
Less accumulated depreciation and amortization       (206,867)       (185,383)
--------------------------------------------------------------------------------
     Total bank premises and equipment .......      $ 205,165       $ 194,723
================================================================================
</TABLE>

<TABLE>
================================================================================
($ in thousands)                      Year Ended December 31
--------------------------------------------------------------------------------
                                     1999        1998        1997
--------------------------------------------------------------------------------
<S>                               <C>         <C>         <C>
Provisions for depreciation
 and amortization included in:
    Occupancy expense             $ 9,756     $11,086     $ 9,525
    Equipment expense              17,429      16,980      17,976
--------------------------------------------------------------------------------
      Total depreciation and
         amortization expense     $27,185     $28,066     $27,501
================================================================================
</TABLE>


<PAGE>
Note 7
Deposits
         At December 31, 1999,  time deposits  with a remaining  maturity of one
year or more  amounted to  $985,142,000.  Maturities of all time deposits are as
follows: 2000 - $4,270,170,000; 2001 - $732,287,000; 2002 - $109,412,000; 2003 -
$32,542,000; 2004 - $56,572,000; and thereafter - $54,329,000.

         Domestic  certificates  of  deposit of  $100,000  or more  amounted  to
$2,085,972,000 and  $1,746,404,000 at December 31, 1999 and 1998,  respectively.
Interest  on  these  certificates  amounted  to  $90,594,000,   $86,132,000  and
$84,255,000 in 1999, 1998 and 1997, respectively.

         Foreign  deposits,  which are deposit  liabilities of the Cayman Island
office of Hibernia  National Bank,  amounted to $362,723,000 and $321,537,000 at
December 31, 1999 and 1998, respectively. These deposits are comprised primarily
of individual deposits of $100,000 or more. Interest expense on foreign deposits
amounted to  $14,266,000,  $11,422,000  and $5,204,000 for 1999,  1998 and 1997,
respectively.


Note 8
Short-Term Borrowings
         The following is a summary of short-term borrowings.

<TABLE>
<CAPTION>
=========================================================================================
($ in thousands)                                                December 31
-----------------------------------------------------------------------------------------
                                                               1999            1998
-----------------------------------------------------------------------------------------
<S>                                                      <C>             <C>
Federal funds purchased ...........................      $  552,275      $  705,320
Securities sold under agreements to repurchase ....         475,416         390,743
Federal Reserve Bank treasury, tax and loan account          74,999          38,073
-----------------------------------------------------------------------------------------
     Total short-term borrowings ..................      $1,102,690      $1,134,136
=========================================================================================
</TABLE>

         Federal  funds  purchased  and  securities  sold  under  agreements  to
repurchase generally mature within one to 14 days from the transaction date. The
Federal Reserve Bank treasury, tax and loan account is an open-ended note option
with the  Federal  Reserve  Bank of  Atlanta.  The  following  is a  summary  of
pertinent data related to short-term borrowings.

<TABLE>
<CAPTION>
====================================================================================
($ in thousands)                                       December 31
------------------------------------------------------------------------------------
                                          1999             1998           1997
------------------------------------------------------------------------------------
<S>                                 <C>              <C>              <C>
Outstanding at December 31 ...      $1,102,690       $1,134,136       $719,961
Maximum month-end outstandings      $1,301,423       $1,134,136       $938,716
Average daily outstandings ...      $1,086,547       $  790,890       $606,102
Average rate during the year..             4.9%             5.1%           5.2%
Average rate at year end .....             4.9%             5.0%           5.7%
====================================================================================
</TABLE>

<PAGE>
Note 9
Debt
         The following is a summary of outstanding debt.

<TABLE>
<CAPTION>
================================================================================
($ in thousands)                                December 31
--------------------------------------------------------------------------------
                                                1999       1998
--------------------------------------------------------------------------------
<S>                                         <C>        <C>
Federal Home Loan Bank callable advances    $400,000   $300,000
Federal Home Loan Bank long-term advances    444,849    505,689
Other ...................................          -        648
--------------------------------------------------------------------------------
     Total debt .........................   $844,849   $806,337
================================================================================
</TABLE>

         The Federal Home Loan Bank (FHLB) advances are secured by the Company's
investment in FHLB stock, which totaled  $48,972,000 and $43,032,000 at December
31, 1999 and 1998, respectively, and also by a blanket floating lien on portions
of the Company's residential mortgage loan portfolio.

         The FHLB  callable  advances  require  monthly  interest  payments.  An
advance in the amount of  $200,000,000  matures in 2008,  accrues  interest at a
rate of 5.28%, and is callable at quarterly  intervals which begin in June 2003.
Another  $200,000,000  advance  matures in 2004,  accrues  interest at a rate of
5.65%, and is callable at quarterly  intervals which begin in September 2001. If
called prior to maturity,  replacement  funding will be offered by the FHLB at a
then-current  rate. The FHLB long-term  advances  accrue interest at contractual
rates  of 4.61% to  8.36%,  are due in  monthly  installments  of  approximately
$2,251,000,  including  interest,  and are scheduled to amortize through various
dates between 2000 and 2015. However,  should the residential mortgage loans for
which  the  long-term  advances  were  obtained  repay  at a  faster  rate  than
anticipated, the advances are to be repaid at a correspondingly faster rate.

         Maturities  of  debt  are  as  follows:  2000  -  $100,853,000;  2001 -
$301,014,000;  2002 - $40,741,000;  2003 - $429,000;  2004 -  $200,369,000;  and
thereafter - $201,443,000.


Note 10
Other Assets and Other Liabilities
         The following are summaries of other assets and other liabilities.

<TABLE>
<CAPTION>
================================================================================
($ in thousands)                               December 31
--------------------------------------------------------------------------------
                                              1999       1998
--------------------------------------------------------------------------------
<S>                                       <C>        <C>
Other assets:
     Accrued interest receivable ......   $ 96,907   $ 93,765
     Foreclosed assets and excess
          bank-owned property .........     11,907     13,410
     Deferred income taxes ............     73,277     26,482
     Goodwill, net ....................    194,217    140,877
     Core deposit intangibles, net ....     17,170      9,650
     Trust intangibles, net ...........     15,007          -
     Mortgage servicing rights, net ...     45,746     31,111
     Other ............................     72,821     54,532
--------------------------------------------------------------------------------
          Total other assets ..........   $527,052   $369,827
--------------------------------------------------------------------------------
Other liabilities:
     Accrued interest payable .........   $ 39,711   $ 37,524
     Trade accounts payable and
          accrued liabilities .........     52,408     74,347
     Reserve for future rental payments
          under sale/leaseback ........     18,270     19,821
     Other ............................     24,725     20,213
--------------------------------------------------------------------------------
          Total other liabilities .....   $135,114   $151,905
================================================================================
</TABLE>

         Amortization   expense   relating  to  goodwill   totaled   $9,840,000,
$8,591,000 and $8,772,000 for the years ended December 31, 1999,  1998 and 1997,
respectively. Accumulated amortization relating to goodwill at December 31, 1999
and 1998 totaled $54,338,000 and $46,274,000, respectively. Amortization expense
relating  to  core  deposit  intangibles  totaled  $5,197,000,   $3,847,000  and
$4,931,000  in  1999,  1998 and  1997,  respectively.  Accumulated  amortization
relating to core deposit  intangibles  totaled  $15,852,000  and  $10,655,000 at
December 31, 1999 and 1998, respectively. Amortization expense relating to trust
intangibles  totaled $2,052,000 in 1999.  Accumulated  amortization  relating to
trust intangibles totaled $2,052,000 at December 31, 1999.

<PAGE>
         Mortgage  servicing  rights of $27,009,000 and  $24,066,000  were added
during the years ended  December 31, 1999 and 1998,  respectively.  Amortization
expense related to mortgage servicing rights totaled $6,674,000,  $3,900,000 and
$1,331,000 for 1999, 1998 and 1997, respectively. There was no valuation reserve
for  mortgage  servicing  rights in 1997.  A valuation  reserve in the amount of
$800,000  was  established  in 1998.  There was no  activity  in this  valuation
reserve during 1999.


Note 11
Preferred Stock
         The Company has authorized 100,000,000 shares of no par value preferred
stock.   At  December  31,  1999  and  1998,   2,000,000   shares  of  Series  A
Fixed/Adjustable  Rate Noncumulative  Preferred Stock (Series A Preferred Stock)
were issued and  outstanding.  The Series A Preferred  Stock is  nonconvertible,
with a $50 per-share  liquidation  preference and a 6.9% annual dividend through
October 1, 2001,  payable on the first  business day of each  calendar  quarter.
Beginning  October 1, 2001, the dividend rate is adjustable but will not be less
than 7.4% nor  greater  than  13.4% per  annum.  The  Series A  Preferred  Stock
qualifies  as Tier 1  capital  for  regulatory  purposes  and is  redeemable  at
Hibernia's  option (with prior Federal Reserve Board approval) at any time after
October 1, 2001.


Note 12
Employee Benefit Plans
         The Company maintains a defined-contribution benefit plan under Section
401(k) of the  Internal  Revenue  Code,  the  Retirement  Security  Plan  (RSP).
Substantially  all employees who have completed one year of service are eligible
to  participate  in the RSP.  Under the RSP,  employees  contribute a portion of
their  compensation,  with  the  Company  matching  100% of the  first  5% of an
employee's  contribution.  The matching  contributions  are invested in Hibernia
Class A Common Stock and are charged to employee benefits  expense.  At December
31,  1999,  the RSP owned  approximately  3,149,000  shares of Hibernia  Class A
Common Stock. The Company's contributions to the RSP totaled $5,627,000 in 1999,
$5,511,000 in 1998 and $5,048,000 in 1997.

         The Company  maintains  incentive  pay and bonus  programs  for certain
employees. Costs of these programs were $24,371,000, $25,732,000 and $21,051,000
for the years ended December 31, 1999, 1998 and 1997, respectively.

         During 1995, the Company  established a plan  (1995-1997  Plan) for the
grant of performance share awards under its Long-Term Incentive Plan for certain
members of management. Under the 1995-1997 Plan, if the Company achieved certain
predetermined  performance  goals during the  three-year  period from January 1,
1995 through  December 31, 1997, the Company would award Hibernia Class A Common
Stock to certain  members of management who contributed to that  achievement.  A
total of 425,499  shares of Hibernia  Class A Common Stock,  net of personal tax
withholding,  was issued under the 1995-1997  Plan in the first quarter of 1998.
Compensation  expense  of  $6,390,000  was  recorded  in  1997  relating  to the
1995-1997 Plan.

         A new performance  share awards plan  (1998-2000  Plan) was established
for the  three-year  period from January 1, 1998 through  December 31, 2000. The
structure  of the  1998-2000  Plan was  similar to that of the  1995-1997  Plan.
Compensation  expense  of  $8,000,000  was  recorded  in  1998  relating  to the
1998-2000 Plan and reversed in 1999.  The reversal  resulted from the failure to
meet certain requirements necessary to achieve a payout under the plan.


Note 13
Employee Stock Ownership Plan
         During 1995, the Company  instituted an employee  stock  ownership plan
(ESOP) in which substantially all employees participate. The ESOP was authorized
to  purchase  $30,000,000  of  Hibernia  Class A Common  Stock and to borrow the
needed  funds from  Hibernia  National  Bank,  with a guarantee  from the Parent
Company.  The ESOP  acquired  $30,000,000  of Hibernia  Class A Common  Stock in
open-market  transactions from March 1995 to May 1998. During 1998, the ESOP was
authorized to acquire an additional $15,000,000 of Hibernia Class A Common Stock
which was to be funded by an additional  borrowing from Hibernia  National Bank,
with a guarantee from the Parent Company. The additional $15,000,000 of Hibernia
Class A Common Stock was purchased on October 22, 1998.

         The ESOP  owned  approximately  3,874,000  shares of  Hibernia  Class A
Common Stock at December 31, 1999 and 1998. The  outstanding  debt obligation of
the ESOP  totaled  $34,686,000  and  $37,751,000  at December 31, 1999 and 1998,
respectively.  The Bank  makes  annual  contributions  to the ESOP in an  amount
determined by its Board of Directors,  but at least equal to the ESOP's  minimum
debt service less dividends received by the ESOP. Dividends received by the ESOP
in 1999, 1998 and 1997 were used to pay debt service, and it is anticipated that
this  practice  will  continue in the future.  The ESOP  shares  initially  were
pledged as collateral  for its debt. As the debt is repaid,  shares are released
from collateral and allocated to active employees.

<PAGE>
         The debt of the ESOP is recorded as debt of the Parent Company, and the
shares  pledged as collateral are reported as unearned  compensation  in equity.
Hibernia  National Bank's loan asset and the Parent Company's debt liability are
eliminated in consolidation. As shares are committed to be released, the Company
reports  compensation  expense equal to the current  market value of the shares,
and the shares become outstanding for net income per common share  computations.
Dividends  on  allocated  ESOP shares are  recorded  as a reduction  of retained
earnings;  dividends on  unallocated  ESOP shares are recorded as a reduction of
debt and accrued interest by the Parent Company.

<PAGE>
         Compensation expense of $2,763,000,  $4,224,000 and $3,014,000 relating
to the ESOP was recorded during 1999, 1998 and 1997, respectively. The ESOP held
1,151,000 and 872,000  allocated  shares and  2,723,000  and 3,002,000  suspense
shares at  December  31,  1999 and  1998,  respectively.  The fair  value of the
suspense shares at December 31, 1999 and 1998 was  $28,929,000 and  $52,168,000,
respectively.


Note 14
Stock Options
        SFAS No.123,"Accounting for Stock-Based Compensation," defines financial
accounting and reporting  standards for stock-based  compensation  plans.  Those
plans include all  arrangements by which employees and directors  receive shares
of stock or other  equity  instruments  of the  company,  or the company  incurs
liabilities  to  employees  or  directors  in amounts  based on the price of the
stock.  SFAS No.  123  defines  a  fair-value-based  method  of  accounting  for
stock-based  compensation.  However,  SFAS No.  123 also  allows  an  entity  to
continue to measure  stock-based  compensation  cost using the  intrinsic  value
method of Accounting  Principles Board Opinion No. 25 (APB No. 25),  "Accounting
for Stock  Issued to  Employees."  Entities  electing  to retain the  accounting
prescribed  in APB No. 25 must make pro forma  disclosures  of net  income,  net
income per common share and net income per common  share - assuming  dilution as
if the  fair-value-based  method of accounting  defined in SFAS No. 123 had been
applied.  The  Company  retained  the  provisions  of APB  No.  25  for  expense
recognition  purposes.  Under APB No.  25,  because  the  exercise  price of the
Company's  stock options equals the market price of the underlying  stock on the
date of grant, no compensation expense is recognized.

        The  Company's stock  option plans  provide  incentive and non-qualified
options to various  key employees  and non-employee directors.  The  options are
granted at no less than the fair market value of the stock at the date of grant.
Options granted to directors upon inception of service as a director vest in six
months.  Until  October  1997,  those  options were granted under the 1987 Stock
Option  Plan;  after  October  1997,  those  options are granted  under the 1993
Directors'  Stock Option Plan.  All other  options  granted under the 1987 Stock
Option Plan, the Long-Term  Incentive Plan and the 1993 Directors'  Stock Option
Plan become exercisable in the following increments: 50% after the expiration of
two years from the date of grant, an additional 25% three years from the date of
grant and the remaining 25% four years from the date of grant.

         Options  granted  to  employees  and  directors,  other  than the chief
executive officer,  become  immediately  exercisable if the holder of the option
dies  while the  option is  outstanding.  Options  granted  under the 1987 Stock
Option Plan  generally  expire 10 years from the date granted.  Options  granted
under the Long-Term  Incentive  Plan and the 1993  Directors'  Stock Option Plan
generally  expire  10  years  from the date of grant  unless  the  holder  dies,
retires,  becomes  permanently  disabled or leaves the employ of the Company, at
which time the options  expire at various times ranging from 90 to 365 days. All
options vest immediately upon a change in control of the Company.

         The following  summarizes the option activity in the plans during 1999,
1998  and  1997.  During  1997,  the 1987  Stock  Option  Plan  was  terminated;
therefore,  there are no  shares  available  for  grant  under  this  plan.  The
termination did not impact options outstanding under the 1987 Stock Option Plan.
<TABLE>
<CAPTION>
=====================================================================================
                                                                         Weighted-
                                                                          Average
                                                                          Exercise
                                Incentive  Non-Qualified       Total        Price
-------------------------------------------------------------------------------------
<S>                               <C>         <C>           <C>          <C>
1987 Stock Option Plan:
Outstanding, December 31, 1996    160,553     1,343,588     1,504,141    $    7.45
     Canceled ................          -       (67,104)      (67,104)       16.37
     Exercised ...............    (18,750)      (34,745)      (53,495)        5.47
-------------------------------------------------------------------------------------
Outstanding, December 31, 1997    141,803     1,241,739     1,383,542         7.10
     Canceled ................          -       (42,625)      (42,625)       16.45
     Exercised ...............    (91,640)      (19,777)     (111,417)        4.61
-------------------------------------------------------------------------------------
Outstanding, December 31, 1998     50,163     1,179,337     1,229,500         7.00
     Canceled ................          -       (86,876)      (86,876)       18.80
     Exercised ...............     (6,250)       (8,949)      (15,199)        6.05
-------------------------------------------------------------------------------------
Outstanding, December 31, 1999     43,913     1,083,512     1,127,425    $    6.10
-------------------------------------------------------------------------------------
Exercisable, December 31, 1999     43,913     1,083,512     1,127,425    $    6.10
=====================================================================================
</TABLE>

<PAGE>
<TABLE>
<CAPTION>
===================================================================================================================
                                                                                                      Weighted-
                                                                                                       Average
                                                                                                      Exercise
                                                             Incentive  Non-Qualified       Total       Price
-------------------------------------------------------------------------------------------------------------------
<S>                                                             <C>       <C>           <C>          <C>
Long-Term Incentive Plan:
Outstanding, December 31, 1996 ...........................      12,598    4,841,972     4,854,570    $    8.27
     Granted (weighted-average fair value $3.99 per share)           -    1,540,300     1,540,300        13.43
     Canceled ............................................           -     (172,488)     (172,488)       10.92
     Exercised ...........................................           -     (473,772)     (473,772)        7.31
-------------------------------------------------------------------------------------------------------------------
Outstanding, December 31, 1997 ...........................      12,598    5,736,012     5,748,610         9.65
     Granted (weighted-average fair value $5.59 per share)           -    1,919,684     1,919,684        18.35
     Canceled ............................................           -     (222,819)     (222,819)       13.81
     Exercised ...........................................           -     (366,728)     (366,728)        7.99
-------------------------------------------------------------------------------------------------------------------
Outstanding, December 31, 1998 ...........................      12,598    7,066,149     7,078,747        11.97
     Granted (weighted-average fair value $4.49 per share)           -    2,411,175     2,411,175        15.95
     Canceled ............................................           -     (260,788)     (260,788)       16.29
     Exercised ...........................................           -     (407,062)     (407,062)        8.40
-------------------------------------------------------------------------------------------------------------------
Outstanding, December 31, 1999 ...........................      12,598    8,809,474     8,822,072    $   13.09
-------------------------------------------------------------------------------------------------------------------
Exercisable, December 31, 1999 ...........................      12,598    3,842,659     3,855,257    $    9.20
-------------------------------------------------------------------------------------------------------------------
Available for Grant, December 31, 1999 ...................                              1,164,446
-------------------------------------------------------------------------------------------------------------------

1993 Directors' Stock Option Plan:
Outstanding, December 31, 1996 ...........................           -      263,750       263,750    $    8.57
     Granted (weighted-average fair value $3.90 per share)           -       70,000        70,000        13.00
     Exercised ...........................................           -      (43,750)      (43,750)        8.11
-------------------------------------------------------------------------------------------------------------------
Outstanding, December 31, 1997 ...........................           -      290,000       290,000         9.70
     Granted (weighted-average fair value $7.14 per share)           -       75,000        75,000        21.57
     Canceled ............................................           -      (10,000)      (10,000)       17.36
     Exercised ...........................................           -      (20,000)      (20,000)        8.44
-------------------------------------------------------------------------------------------------------------------
Outstanding, December 31, 1998 ...........................           -      335,000       335,000        12.21
     Granted (weighted-average fair value $3.45 per share)           -       80,000        80,000        12.90
     Canceled ............................................           -       (5,000)       (5,000)       21.72
     Exercised ...........................................           -      (40,000)      (40,000)        9.79
-------------------------------------------------------------------------------------------------------------------
Outstanding, December 31, 1999 ...........................           -      370,000       370,000    $   12.49
-------------------------------------------------------------------------------------------------------------------
Exercisable, December 31, 1999 ...........................           -      193,750       193,750    $    9.65
-------------------------------------------------------------------------------------------------------------------
Available for Grant, December 31, 1999 ...................                                502,500
===================================================================================================================
</TABLE>

         In addition to the above option activity in the plans, 82,346,  484,915
and 7,900 shares of restricted stock were awarded under the Long-Term  Incentive
Plan during the years ended December 31, 1999, 1998 and 1997, respectively.

<PAGE>
         The following table presents the weighted-average  remaining life as of
December 31, 1999 for options  outstanding  for the 1987 Stock Option Plan,  the
Long-Term  Incentive Plan and the 1993  Directors'  Stock Option Plan within the
stated exercise price ranges.

<TABLE>
<CAPTION>
=========================================================================================================
                                                Outstanding                            Exercisable
---------------------------------------------------------------------------------------------------------
                                                  Weighted-        Weighted-                  Weighted-
                                        Number     Average          Average        Number      Average
Exercise Price Range Per Share      of Options  Exercise Price  Remaining Life  of Options Exercise Price
---------------------------------------------------------------------------------------------------------
1987 Stock Option Plan:
<S>                                  <C>           <C>             <C>          <C>           <C>
     $4.19 to $5.31 ..............     457,759     $    4.42       2.23 years     457,759     $    4.42
     $7.19 to $8.75 ..............     667,666     $    7.23       3.29 years     667,666     $    7.23
     $14.94.......................       2,000     $   14.94       0.55 years       2,000     $   14.94
---------------------------------------------------------------------------------------------------------
Long-Term Incentive Plan:
     $6.88 to $8.25 ..............   2,274,322     $    7.48       4.41 years   2,274,322     $    7.48
     $10.19 to $13.97 ............   2,630,000     $   12.00       6.81 years   1,578,635     $   11.65
     $15.13 to $16.09 ............   2,202,325     $   16.09       9.08 years       1,100     $   16.09
     $18.28 to $21.56 ............   1,715,425     $   18.37       8.08 years       1,200     $   18.28
---------------------------------------------------------------------------------------------------------
1993 Directors' Stock Option Plan:
     $7.31 to $8.13 ..............     115,000     $    7.83       4.45 years     115,000     $    7.83
     $10.44 to $13.00 ............     185,000     $   12.09       7.85 years      68,750     $   11.46
     $17.00 to $21.72 ............      70,000     $   21.22       8.35 years      10,000     $   18.25
=========================================================================================================
</TABLE>

         The following pro forma  information  was  determined as if the Company
had  accounted  for  stock  options  issued  in 1995 and  thereafter  using  the
fair-value-based  method  as  defined  in SFAS No.  123.  The fair  value of the
options was estimated  using a  Black-Scholes  option  valuation  model with the
following  weighted-average  assumptions for 1999, 1998 and 1997,  respectively:
risk-free interest rates of 4.92%, 5.66% and 6.67%;  expected dividend yields of
2.66%, 1.95% and 2.39%;  expected  volatility factors of the market price of the
Hibernia  Class A Common Stock of 29%, 24% and 23%; and an expected  life of the
options of 10 years.

         The  Black-Scholes  option  valuation  model was  developed  for use in
estimating the fair value of traded  options which have no vesting  restrictions
and are fully  transferable.  In addition,  option  valuation models require the
input of highly  subjective  assumptions,  including  the  expected  stock price
volatility.   Because  the   Company's   stock   options  have   characteristics
significantly different from those of traded options, and because changes in the
subjective input assumptions can materially  affect the fair value estimate,  in
management's  opinion the existing models do not necessarily  provide a reliable
single measure of the fair value of its employee and director stock options.

         For purposes of pro forma disclosures,  the estimated fair value of the
options granted in 1995 and thereafter is amortized to expense over the options'
vesting  period.  Since the Company's  options  generally  vest over a four-year
period,  the pro forma  disclosures  are not  indicative of future amounts until
SFAS No. 123 is applied to all outstanding, nonvested options.

<TABLE>
<CAPTION>
================================================================================================================
($ in thousands, except per-share data)                           Year Ended December 31
----------------------------------------------------------------------------------------------------------------
                                    1999                        1998                        1997
----------------------------------------------------------------------------------------------------------------
                         As Reported     Pro Forma   As Reported     Pro Forma   As Reported     Pro Forma
----------------------------------------------------------------------------------------------------------------
<S>                      <C>           <C>           <C>           <C>           <C>           <C>
Net income ...........   $   175,103   $   170,348   $   180,956   $   177,268   $   147,895   $   145,832
Net income per
     common share ....   $      1.07   $      1.04   $      1.11   $      1.08   $       .90   $       .89
Net income per
     common share -
     assuming dilution   $      1.06   $      1.03   $      1.09   $      1.07   $       .89   $       .87
================================================================================================================
</TABLE>


<PAGE>
Note 15
Leases
         The  Company  leases its  headquarters,  operations  center and certain
other office space, bank premises and equipment under  non-cancelable  operating
leases which expire at various dates  through  2035.  Certain of the leases have
escalation clauses and renewal options ranging from one to 50 years.

         Total rental  expense  (none of which  represents  contingent  rentals)
included in occupancy and equipment  expense was  $13,697,000,  $12,449,000  and
$12,745,000 in 1999, 1998 and 1997, respectively.

         Minimum  rental  commitments  for  long-term  operating  leases  are as
follows:  2000 -  $12,131,000;  2001 - $12,041,000;  2002 - $11,737,000;  2003 -
$11,267,000; 2004 - $10,865,000; and thereafter - $40,760,000.


Note 16
Other Operating Expense
         The following is a summary of other operating expense.

<TABLE>
<CAPTION>
=======================================================================
($ in thousands)                      Year Ended December 31
-----------------------------------------------------------------------
                                      1999      1998      1997
-----------------------------------------------------------------------
<S>                                <C>       <C>       <C>
State taxes on equity ..........   $12,115   $11,237   $ 7,681
Telecommunications .............     9,844    11,259    11,437
Professional fees ..............     7,371     6,755    10,539
Postage ........................     7,256     7,216     7,110
Stationery and supplies ........     6,344     5,736     6,355
Loan collection expense ........     5,003     4,771     4,054
Regulatory expense .............     3,061     2,867     2,953
Other ..........................    42,890    37,466    40,423
-----------------------------------------------------------------------
   Total other operating expense   $93,884   $87,307   $90,552
=======================================================================
</TABLE>


Note 17
Income Taxes
         Income tax  expense  includes  amounts  currently  payable  and amounts
deferred  to or from  other  years as a result of  differences  in the timing of
recognition  of income and  expense  for  financial  reporting  and  federal tax
purposes. The following is a summary of the components of income tax expense.

<TABLE>
<CAPTION>
================================================================================
($ in thousands)                                     Year Ended December 31
--------------------------------------------------------------------------------
                                                    1999       1998       1997
--------------------------------------------------------------------------------
<S>                                             <C>         <C>       <C>
Current tax expense:
     Federal income tax .....................   $ 90,089    $89,035   $ 63,483
     State income tax .......................      6,963      6,181      3,882
--------------------------------------------------------------------------------
          Total current tax expense .........     97,052     95,216     67,365
--------------------------------------------------------------------------------
Deferred tax expense (benefit):
     Federal income tax .....................     (1,368)       670     16,241
     Change in deferred tax valuation reserve          -          -     (3,317)
--------------------------------------------------------------------------------
          Total deferred tax expense ........     (1,368)       670     12,924
--------------------------------------------------------------------------------
Income tax expense ..........................   $ 95,684    $95,886   $ 80,289
--------------------------------------------------------------------------------
Shareholders' equity:
     Change in accumulated other
          comprehensive income ..............   $(44,166)   $ 6,609   $  3,829
================================================================================
</TABLE>


<PAGE>
         The following is a reconciliation  of the federal  statutory income tax
rate to the Company's effective rate.

<TABLE>
<CAPTION>
========================================================================================================================
($ in thousands)                                                     Year Ended December 31
------------------------------------------------------------------------------------------------------------------------
                                                      1999                  1998                  1997
------------------------------------------------------------------------------------------------------------------------
                                                Amount     Rate       Amount     Rate       Amount     Rate
------------------------------------------------------------------------------------------------------------------------
<S>                                           <C>          <C>      <C>          <C>      <C>          <C>
Tax expense based on federal statutory rate   $ 94,775     35.0 %   $ 96,895     35.0 %   $ 79,864     35.0 %
Tax-exempt interest .......................     (6,634)    (2.5)      (6,543)    (2.4)      (6,396)    (2.8)
State income tax, net of federal benefit ..      4,526      1.7        4,018      1.5        2,523      1.1
Goodwill ..................................      2,873      1.0        2,891      1.0        3,040      1.3
Other .....................................        144      0.1       (1,375)    (0.5)       1,258      0.6
------------------------------------------------------------------------------------------------------------------------
     Income tax expense ...................   $ 95,684     35.3 %   $ 95,886     34.6 %   $ 80,289     35.2 %
========================================================================================================================
</TABLE>

         Deferred  income  taxes are based on  differences  between the bases of
assets and  liabilities  for  financial  statement  purposes  and tax  reporting
purposes and capital loss and net operating loss carryforwards.  The tax effects
of the cumulative  temporary  differences  and loss  carryforwards  which create
deferred tax assets and liabilities are detailed in the following table.

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
($ in thousands)                                December 31
--------------------------------------------------------------------------------
                                               1999      1998
--------------------------------------------------------------------------------
Deferred tax assets:
<S>                                        <C>        <C>
     Reserve for loan losses ...........   $ 54,625   $45,621
     Sale/leaseback ....................      6,116     7,024
     Loan fees .........................      4,126     3,443
     Accrued expenses ..................      9,071     9,614
     Deferred compensation .............      4,146     3,659
     Net unrealized losses on securities
          available for sale ...........     29,142         -
     Other .............................      5,007     7,708
--------------------------------------------------------------------------------
          Total deferred tax assets ....    112,233    77,069
--------------------------------------------------------------------------------
Deferred tax liabilities:
     Net unrealized gains on securities
          available for sale ...........          -    15,024
     Depreciation ......................     12,123    14,260
     Core deposit intangibles ..........      1,380     2,601
     Mortgage servicing rights .........      6,525     4,764
     Other .............................     18,928    13,938
--------------------------------------------------------------------------------
          Total deferred tax liabilities     38,956    50,587
--------------------------------------------------------------------------------
          Deferred tax assets, net of
               deferred tax liabilities    $ 73,277   $26,482
================================================================================
</TABLE>

         Management  assesses  realizability of the net deferred tax asset based
on the Company's  ability to: first,  recover taxes previously paid and, second,
generate  taxable  income  and  capital  gains in the  future.  A  deferred  tax
valuation reserve is established, if needed, to limit the net deferred tax asset
to its realizable value.


<PAGE>
Note 18
Net Income Per Common Share Data
         The following sets forth the computation of net income per common share
and net income per common share - assuming dilution.

<TABLE>
<CAPTION>
==============================================================================================================
($ in thousands, except per-share data)                                Year Ended December 31
--------------------------------------------------------------------------------------------------------------
                                                                1999             1998             1997
--------------------------------------------------------------------------------------------------------------
<S>                                                       <C>              <C>              <C>
Numerator:
     Net income .....................................     $  175,103       $  180,956       $  147,895
     Preferred stock dividends ......................         (6,900)          (6,900)          (6,900)
--------------------------------------------------------------------------------------------------------------
     Numerator for net income per common share ......        168,203          174,056          140,995
     Effect of dilutive securities ..................              -                -                -
--------------------------------------------------------------------------------------------------------------
     Numerator for net income per common
          share - assuming dilution ................      $  168,203       $  174,056       $  140,995
--------------------------------------------------------------------------------------------------------------
Denominator:
     Denominator for net income per common
          share (weighted-average shares outstanding)     157,253,229      157,168,782      156,323,513
     Effect of dilutive securities:
          Stock options .............................       1,548,018        2,410,838        2,204,500
          Purchase warrants .........................               -                -          174,376
          Restricted stock awards ...................         100,775           35,850          151,255
--------------------------------------------------------------------------------------------------------------
     Denominator for net income per common
          share - assuming dilution .................     158,902,022      159,615,470      158,853,644
--------------------------------------------------------------------------------------------------------------
Net income per common share .........................         $  1.07          $  1.11          $  0.90
--------------------------------------------------------------------------------------------------------------
Net income per common share - assuming dilution .....         $  1.06          $  1.09          $  0.89
==============================================================================================================
</TABLE>

        The weighted-average  shares  outstanding  exclude 2,902,121,  2,224,254
and 1,782,937 average common shares in 1999, 1998 and 1997,  respectively,  held
by the Hibernia ESOP (discussed in Note 13) which have not been committed  to be
released.  The common  shares  issued in all mergers accounted  for as  poolings
of  interests   consummated  in  1999,  1998  and  1997  are  considered  to  be
outstanding  as of  the  beginning  of  the  earliest  period presented.

         Options with an exercise price greater than the average market price of
the Company's Class A Common Stock for the year are antidilutive and, therefore,
are not  included in the  computation  of net income per common share - assuming
dilution. During 1999 there were 4,014,750 antidilutive options outstanding with
exercise  prices  ranging from $13.97 to $21.72,  during 1998 there were 269,076
antidilutive  options  outstanding  with exercise  prices ranging from $18.80 to
$21.72 and during 1997 there were 129,501  antidilutive options outstanding with
exercise prices ranging from $16.30 to $18.80.


<PAGE>
Note 19
Comprehensive Income
         The  following is a summary of the  components  of other  comprehensive
income.

<TABLE>
<CAPTION>
=====================================================================================
                                                         Income Tax
                                              Before       Expense     After
($ in thousands)                           Income Taxes   (Benefit  Income Taxes
-------------------------------------------------------------------------------------
Year ended December 31, 1999
-------------------------------------------------------------------------------------
<S>                                          <C>          <C>         <C>
Unrealized gains (losses) on securities ..   $(124,472)   $(43,552)   $(80,920)
     available for sale, net
Reclassification adjustment for net
     (gains) losses realized in net income      (1,754)       (614)     (1,140)
-------------------------------------------------------------------------------------
          Other comprehensive income .....   $(126,226)   $(44,166)   $(82,060)
-------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------
Year ended December 31, 1998
-------------------------------------------------------------------------------------
Unrealized gains (losses) on securities
     available for sale, net .............   $  18,278    $  6,313    $ 11,965
Reclassification adjustment for net
     (gains) losses realized in net income         847         296         551
-------------------------------------------------------------------------------------
          Other comprehensive income .....   $  19,125    $  6,609    $ 12,516
-------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------
Year ended December 31, 1997
-------------------------------------------------------------------------------------
Unrealized gains (losses) on securities
     available for sale, net .............   $  11,404    $  3,894    $  7,510
Reclassification adjustment for net
     (gains) losses realized in net income        (187)        (65)       (122)
-------------------------------------------------------------------------------------
          Other comprehensive income .....   $  11,217    $  3,829    $  7,388
-------------------------------------------------------------------------------------
</TABLE>


Note 20
Related-Party Transactions
         Certain  directors  and  officers  of the  Company,  members  of  their
immediate  families  and  entities  in which they or members of their  immediate
families  have  principal  ownership  interests  are customers of and have other
transactions with the Company in the ordinary course of business. Loans to these
parties are made on substantially the same terms,  including  interest rates and
collateral,   as  those  prevailing  at  the  time  for  comparable  third-party
transactions  and do not involve  more than normal  risks of  collectibility  or
present other unfavorable features.

         Loans  outstanding to related parties were  $24,668,000 and $22,008,000
at December 31, 1999 and 1998,  respectively.  The change  during 1999  reflects
$5,439,000 in loan advances and  $2,779,000 in loan  payments.  These amounts do
not include loans made in the ordinary course of business to other entities with
which the  Company  has no  relationship,  other than a director  of the Company
being a director of the other  entity,  unless that  director had the ability to
significantly influence the other entity.

         Securities sold to related parties under repurchase agreements amounted
to $4,693,000 and $7,882,000 at December 31, 1999 and 1998, respectively.


Note 21
Financial Instruments and Derivative Financial Instruments
         Generally  accepted  accounting  principles  require disclosure of fair
value  information  about  financial  instruments for which it is practicable to
estimate fair value, whether or not the financial  instruments are recognized in
the financial  statements.  When quoted market  prices are not  available,  fair
values are based on estimates using present value or other valuation techniques.
Those techniques are significantly  affected by the assumptions used,  including
the discount  rate and  estimates  of future cash flows.  The derived fair value
estimates cannot be substantiated through comparison to independent markets and,
in many cases, could not be realized in immediate  settlement of the instrument.
Certain  financial  instruments and all  non-financial  instruments are excluded
from these  disclosure  requirements.  Further,  the  disclosures do not include
estimated  fair values for items which are not financial  instruments  but which
represent   significant   value  to  the  Company,   among  them:  core  deposit
intangibles, trust operations and other fee-generating businesses.  Accordingly,
the aggregate fair value amounts presented do not represent the underlying value
of the Company.

<PAGE>
         The carrying amount of cash and cash  equivalents,  noninterest-bearing
deposits and  short-term  borrowings  approximates  the estimated  fair value of
these financial  instruments.  The estimated fair value of securities,  interest
rate  agreements  and  other  off-balance-sheet  instruments  is based on quoted
market  prices,  dealer  quotes and prices  obtained  from  independent  pricing
services. The estimated fair value of loans,  interest-bearing deposits and debt
is based  on  present  values  using  applicable  risk-adjusted  spreads  to the
appropriate yield curve to approximate current interest rates applicable to each
category of these  financial  instruments.  The estimated fair value of mortgage
servicing  rights is based on present values of estimated future cash flows. The
estimated  fair value of  commitments to extend credit and letters of credit and
financial  guarantees are based on fees currently  charged to enter into similar
agreements,  taking into account the remaining  terms of the  agreements and the
counterparties' credit standing.

         Interest  rates  are  not  adjusted  for  changes  in  credit  risk  of
performing  commercial  and small  business  loans for which  there are no known
credit concerns.  Management segregates loans in appropriate risk categories and
believes  the risk  factor  embedded  in the  interest  rates  results in a fair
valuation of these loans on an entry-value basis.

         Variances  between the carrying  amount and the estimated fair value of
loans reflect both credit risk and interest rate risk.  The Company is protected
against  changes in credit risk by the reserve  for loan  losses  which  totaled
$156,072,000 and $130,347,000 at December 31, 1999 and 1998, respectively.

         The fair value estimates  presented are based on information  available
to management as of December 31, 1999 and 1998. Although management is not aware
of any factors that would significantly affect the estimated fair value amounts,
these amounts have not been revalued for purposes of these financial  statements
since  those  dates.  Therefore,  current  estimates  of fair  value may  differ
significantly from the amounts presented.

<TABLE>
<CAPTION>
===========================================================================================
($ in thousands)                                       December 31
-------------------------------------------------------------------------------------------
                                              1999                       1998
-------------------------------------------------------------------------------------------
                                      Carrying       Fair       Carrying       Fair
                                        Amount      Value        Amount       Value
-------------------------------------------------------------------------------------------
<S>                                  <C>          <C>          <C>          <C>
Assets
     Cash and cash equivalents ...   $  827,699   $  827,699   $  945,021   $  945,021
     Securities available for sale   $2,660,322   $2,660,322   $2,761,701   $2,761,701
     Securities held to maturity..   $  300,525   $  297,072          $ -          $ -
     Mortgage loans held for sale    $   92,704   $   92,951   $  281,434   $  294,367
     Commercial loans ............   $3,693,308   $3,711,726   $3,879,836   $3,919,242
     Small business loans ........   $2,361,866   $2,381,764   $2,069,744   $2,105,160
     Consumer loans ..............   $4,801,502   $4,854,143   $3,957,614   $4,050,755
     Mortgage servicing rights ...   $   45,746   $   62,618   $   31,111   $   37,018
Liabilities
     Noninterest-bearing deposits    $2,085,322   $2,085,322   $2,065,770   $2,065,770
     Interest-bearing deposits ...   $9,770,581   $9,781,759   $8,826,803   $8,864,682
     Short-term borrowings .......   $1,102,690   $1,102,690   $1,134,136   $1,134,136
     Debt ........................   $  844,849   $  848,150   $  806,337   $  815,530
===========================================================================================
</TABLE>

         The Company issues financial instruments with off-balance-sheet risk in
the normal course of business to meet the  financing  needs of its customers and
to  reduce  exposure  to   fluctuations  in  interest  rates.   These  financial
instruments  include  commitments to extend credit,  letters of credit,  standby
letters of credit and interest rate contracts and involve,  to varying  degrees,
elements of credit and interest rate risk in excess of the amount  recognized on
the balance sheet.

         Commitments   to  extend  credit  are  legally   binding,   conditional
agreements  generally having fixed expiration or termination dates and specified
interest rates and purposes.  These  commitments  generally require customers to
maintain certain credit  standards.  Collateral  requirements and  loan-to-value
ratios are the same as those for funded  transactions and are established  based
on  management's  credit  assessment  of the  customer.  Commitments  may expire
without  being  drawn  upon.  Therefore,  the total  commitment  amount does not
necessarily represent future requirements.


<PAGE>
         The Company issues letters of credit and financial  guarantees (standby
letters of credit) whereby it agrees to honor certain  financial  commitments in
the event its  customers  are unable to  perform.  The  majority  of the standby
letters of credit consist of performance guarantees. Management conducts regular
reviews of all outstanding  standby letters of credit,  and the results of these
reviews are  considered in assessing  the adequacy of the Company's  reserve for
loan losses. Management does not anticipate any material losses related to these
instruments.

<TABLE>
<CAPTION>
==========================================================================================
($ in thousands)                              December 31
------------------------------------------------------------------------------------------
                                     1999                     1998
------------------------------------------------------------------------------------------
                             Contract      Fair      Contract       Fair
                              Amount       Value      Amount        Value
------------------------------------------------------------------------------------------
<S>                         <C>          <C>         <C>          <C>
Commitments
     to extend credit ...   $3,519,620   $(31,477)   $3,492,945   $(31,559)
------------------------------------------------------------------------------------------
Letters of credit and
     financial guarantees   $  269,563   $ (2,003)   $  227,247   $ (1,679)
==========================================================================================
</TABLE>

         The Company  maintains  trading  positions  in a variety of  derivative
financial  instruments.  These trading  activities  are  customer-oriented  and,
generally,  matched  trading  positions are  established to minimize risk to the
Company.  The credit exposure that results from interest rate contracts held for
trading  purposes  is limited  to the  current  fair  value of asset  derivative
positions,  which at December 31, 1999 and 1998 was $5,370,000  and  $3,993,000,
respectively.   The  Company  manages  the  potential  credit  exposure  through
evaluation of the counterparty credit standing,  collateral agreements and other
contract provisions.  The potential credit exposure from future market movements
is estimated by using a statistical model that takes into consideration possible
changes in interest rates over time.

         The  amounts   disclosed  in  the   following   table   represent   the
end-of-period   notional  and  estimated  fair  value  of  derivative  financial
instruments held or issued for trading  purposes and the average  aggregate fair
value of those  instruments  during the year.  Net trading  gains  recognized in
earnings on interest rate contracts  outstanding  were  immaterial for all years
presented.

<TABLE>
<CAPTION>
===========================================================================================================
($ in thousands)                     Notional Amount            Fair Value           Average Fair Value
-----------------------------------------------------------------------------------------------------------
                                        December 31            December 31         Year Ended December 31
-----------------------------------------------------------------------------------------------------------
                                       1999       1998        1999       1998         1999        1998
-----------------------------------------------------------------------------------------------------------
<S>                                <C>        <C>          <C>        <C>          <C>         <C>
Interest rate swaps:
     Assets ....................   $259,650   $227,180     $ 5,370    $ 3,993      $ 3,181     $ 3,284
     Liabilities ...............   $239,650   $150,580     $(4,643)   $(2,805)     $(2,325)    $(2,117)
Options, caps and floors held ..   $    502   $ 13,603     $     -    $     -      $     -     $     3
Options, caps and floors written   $    502   $ 13,603     $    (1)   $    (1)     $    (1)    $    (4)
===========================================================================================================
</TABLE>

         The Company also enters into interest rate contracts in order to manage
interest rate exposure. Interest-rate contracts involve the risk of dealing with
counterparties and their ability to meet contractual terms. These counterparties
must  receive  appropriate  credit  approval  before the Company  enters into an
interest-rate  contract.  Notional principal amounts express the volume of these
transactions, although the amounts potentially subject to credit and market risk
are much smaller.

         One  interest  rate swap with a  notional  amount  of  $125,000,000  at
December  31,  1998 was entered  into  during 1998 as a hedge  against a deposit
relationship of the same maturity.  The  differential to be paid or received was
accrued as  interest  rates  changed  and was  recognized  as an  adjustment  to
interest  expense on deposits.  The related  amount  payable or  receivable  was
included in other assets or other  liabilities.  This interest rate swap matured
on January 4, 1999.


<PAGE>
Note 22
Regulatory Matters and Dividend Restrictions
         The  Company  and the Bank are  subject to various  regulatory  capital
requirements  administered  by the Federal  Reserve Bank (FRB) and the Office of
the  Comptroller of the Currency  (OCC),  respectively.  Failure to meet minimum
capital  requirements can initiate certain  mandatory - and possibly  additional
discretionary  - actions by the FRB and OCC that,  if  undertaken,  could have a
direct  material  effect on the Company's  financial  statements.  Under capital
adequacy  guidelines and the regulatory  framework for prompt corrective action,
the Company and the Bank must meet  specific  capital  guidelines  that  involve
quantitative measures of assets, liabilities and certain off-balance-sheet items
as  calculated  under  regulatory  accounting  practices.  The Company's and the
Bank's  capital  amounts and  classifications  are also  subject to  qualitative
judgments  by the  FRB and OCC  about  components,  risk  weightings  and  other
factors.

         As of December 31, 1999 and 1998,  the most recent  notifications  from
the OCC categorized the Bank as well capitalized under the regulatory  framework
for prompt corrective  action.  For a bank to be designated as well capitalized,
it must have Tier 1 and total  risk-based  capital  ratios of at least  6.0% and
10.0%,  respectively,  and a  leverage  ratio of at  least  5.0%.  There  are no
conditions or events since those  notifications  that  management  believes have
changed the Bank's  categories.

         The  Company's  and the Bank's  actual  capital amounts and  ratios are
presented in the following table.

<TABLE>
<CAPTION>
========================================================================================================================
($ in thousands)                        Tier 1 Risk-Based Capital  Total Risk-Based Capital          Leverage
------------------------------------------------------------------------------------------------------------------------
                                             Amount      Ratio        Amount      Ratio         Amount      Ratio
------------------------------------------------------------------------------------------------------------------------
December 31, 1999
------------------------------------------------------------------------------------------------------------------------
<S>                                        <C>           <C>        <C>           <C>         <C>           <C>
     Hibernia Corporation ...........      $1,203,242    10.21%     $1,350,708    11.46%      $1,203,242    8.11%
     Hibernia National Bank .........      $1,073,402     9.11%     $1,220,769    10.36%      $1,073,402    7.24%
------------------------------------------------------------------------------------------------------------------------

December 31, 1998
------------------------------------------------------------------------------------------------------------------------
     Hibernia Corporation ...........      $1,165,985    10.78%     $1,296,332    11.98%      $1,165,985    8.55%
     Hibernia National Bank .........      $1,040,458     9.61%     $1,170,805    10.82%      $1,040,458    7.67%
========================================================================================================================
</TABLE>

         Under current FRB regulations,  the Bank may lend the Parent Company up
to 10% of its capital and surplus.

         The  payment  of  dividends  by the  Bank  to  the  Parent  Company  is
restricted by various  regulatory and statutory  limitations.  In 2000, the Bank
would have available to pay dividends to the Parent Company, without approval of
the OCC,  approximately  $223,578,000,  plus net retained profits earned in 2000
prior to the dividend declaration date.

         Banks are  required  to  maintain  cash on hand or  noninterest-bearing
balances with the FRB to meet reserve requirements.  Average noninterest-bearing
balances with the FRB were $18,947,000 in 1999 and $22,804,000 in 1998.


Note 23
Hibernia Corporation
         The following Balance Sheets,  Income Statements and Statements of Cash
Flows  reflect the financial  position and results of operations  for the Parent
Company only.

<TABLE>
<CAPTION>
================================================================================
Balance Sheets
--------------------------------------------------------------------------------
($ in thousands)                                           December 31
--------------------------------------------------------------------------------
                                                          1999         1998
--------------------------------------------------------------------------------
<S>                                                 <C>          <C>
Investment in bank subsidiary ...................   $1,246,205   $1,218,705
Other assets ....................................      165,940      165,898
--------------------------------------------------------------------------------
     Total assets ...............................   $1,412,145   $1,384,603
--------------------------------------------------------------------------------
Other liabilities ...............................   $    1,944   $    1,603
Debt (includes ESOP guarantee
     of $34,686 and $37,751
     at December 31, 1999 and 1998, respectively)       34,686       38,398
Shareholders' equity ............................    1,375,515    1,344,602
--------------------------------------------------------------------------------
     Total liabilities and shareholders' equity..   $1,412,145   $1,384,603
================================================================================
</TABLE>

         The Parent  Company and certain of its nonbank  subsidiaries  engage in
private  equity  investments.   These  investments,   totaling  $34,966,000  and
$29,346,000 at December 31, 1999 and 1998,  respectively,  are primarily  equity
transactions,  some of which contain minor debt features.  At December 31, 1999,
$7,000,000 of these  investments  were not in compliance with their  contractual
terms.

<PAGE>
<TABLE>
<CAPTION>
========================================================================================================================
Income Statements
------------------------------------------------------------------------------------------------------------------------
($ in thousands)                                         Year Ended December 31
------------------------------------------------------------------------------------------------------------------------
                                                         1999       1998       1997
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
<S>                                                  <C>        <C>        <C>
Equity in undistributed net income of subsidiaries   $ 96,087   $127,277   $ 86,526
Dividends from bank subsidiary ...................     77,044     50,520     53,596
Other income .....................................      9,748      7,582     12,260
------------------------------------------------------------------------------------------------------------------------
     Total income ................................    182,879    185,379    152,382
------------------------------------------------------------------------------------------------------------------------
Interest expense .................................          -         77        519
Other expense ....................................      7,183      2,829      1,516
------------------------------------------------------------------------------------------------------------------------
     Total expense ...............................      7,183      2,906      2,035
------------------------------------------------------------------------------------------------------------------------
Income before income taxes .......................    175,696    182,473    150,347
Income tax expense ...............................        593      1,517      2,452
------------------------------------------------------------------------------------------------------------------------
Net income .......................................   $175,103   $180,956   $147,895
========================================================================================================================
</TABLE>


<TABLE>
<CAPTION>
========================================================================================================================
Statements of Cash Flows
------------------------------------------------------------------------------------------------------------------------
($ in thousands)                                                  Year Ended December 31
------------------------------------------------------------------------------------------------------------------------
                                                                 1999         1998         1997
------------------------------------------------------------------------------------------------------------------------
<S>                                                         <C>          <C>          <C>
Operating activities
     Net income .........................................   $ 175,103    $ 180,956    $ 147,895
     Non-cash adjustment for equity in
          subsidiaries' undistributed net income ........     (96,087)    (127,277)     (86,526)
     Realized securities gains, net .....................        (364)      (3,778)      (1,305)
     Other adjustments ..................................       3,739        2,213       (8,688)
------------------------------------------------------------------------------------------------------------------------
          Net cash provided by operating activities .....      82,391       52,114       51,376
------------------------------------------------------------------------------------------------------------------------
Investing activities
     Investment in subsidiaries .........................     (15,500)      (8,360)     (28,000)
     Purchases of securities available for sale .........      (9,292)    (205,513)    (120,000)
     Proceeds from sales of securities available for sale         603      206,697      121,305
     Other ..............................................       4,455       (6,430)         834
------------------------------------------------------------------------------------------------------------------------
          Net cash used by investing activities .........     (19,734)     (13,606)     (25,861)
------------------------------------------------------------------------------------------------------------------------
Financing activities
     Payments on debt ...................................        (647)        (366)      (7,392)
     Issuance of common stock ...........................       6,168       14,027        9,848
     Purchase of treasury stock .........................           -            -         (299)
     Dividends paid .....................................     (75,022)     (64,428)     (55,362)
------------------------------------------------------------------------------------------------------------------------
          Net cash used by financing activities .........     (69,501)     (50,767)     (53,205)
------------------------------------------------------------------------------------------------------------------------
Decrease in cash and cash equivalents ...................      (6,844)     (12,259)     (27,690)
Cash and cash equivalents at beginning of year ..........     134,610      146,869      174,559
------------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents at end of year ................   $ 127,766    $ 134,610    $ 146,869
========================================================================================================================
</TABLE>


<PAGE>
Note 24
Segment Information
         SFAS No. 131,  "Disclosures about Segments of an Enterprise and Related
Information,"  establishes  standards for the reporting of financial information
from operating segments in annual and interim financial statements. SFAS No. 131
requires  that  financial  information  be  reported  on the same  basis that is
reported internally for evaluating segment performance and allocating  resources
to segments.

         The  Company's  segment  information  is presented by line of business.
Each line of business is a strategic  unit that  provides  various  products and
services to groups of customers  that have certain common  characteristics.  The
reportable  operating segments are Commercial  Banking,  Small Business Banking,
Consumer Banking,  and Investments and Public Funds. The Commercial  Banking and
Small Business Banking segments  provide  business  entities with  comprehensive
products and services,  including loans, deposit accounts,  leasing,  factoring,
treasury  management and private  equity  investments.  The  Commercial  Banking
segment provides products and services to larger business entities and the Small
Business Banking segment provides  products and services to mid-size and smaller
business  entities.  The Consumer  Banking  segment  provides  individuals  with
comprehensive products and services, including mortgage and other loans, deposit
accounts,  trust  and  investment  management,   brokerage  and  insurance.  The
Investments  and Public  Funds  segment  provides a  treasury  function  for the
Company  by  managing  public  entity   deposits,   the  investment   portfolio,
interest-rate risk, and liquidity and funding positions.

         The  accounting  policies  used by each  segment  are the same as those
discussed in the summary of significant accounting policies, except as described
in the reconciliation of segment totals to consolidated totals. The following is
a summary of certain average balances by segment.

<TABLE>
<CAPTION>
===================================================================================================
                                    Small                 Investments
                    Commercial     Business     Consumer   and Public                 Segment
($ in thousands)       Banking      Banking      Banking        Funds      Other       Total
---------------------------------------------------------------------------------------------------
December 31, 1999
---------------------------------------------------------------------------------------------------
<S>                 <C>          <C>          <C>          <C>          <C>        <C>
Average loans ...   $3,899,600   $2,188,400   $4,332,300   $    1,300   $ 34,200   $10,455,800
Average assets ..   $3,962,400   $2,237,400   $7,743,400   $3,028,700   $574,600   $17,546,500
Average deposits    $  847,600   $1,499,800   $6,646,200   $1,828,100   $ 57,800   $10,879,500
---------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------
December 31, 1998
---------------------------------------------------------------------------------------------------
Average loans ...   $3,487,700   $1,685,400   $3,901,800          $ -   $ 46,700   $ 9,121,600
Average assets ..   $3,550,200   $1,726,100   $6,962,500   $3,187,600   $452,800   $15,879,200
Average deposits    $  711,600   $1,215,700   $6,448,800   $1,527,700   $ 53,200   $ 9,957,000
===================================================================================================
</TABLE>


<PAGE>
         The following  table  presents  condensed  income  statements  for each
segment.

<TABLE>
<CAPTION>
===================================================================================================
                                              Small             Investments
                               Commercial   Business   Consumer  and Public              Segment
($ in thousands)                  Banking    Banking    Banking    Funds      Other       Total
---------------------------------------------------------------------------------------------------
Year ended December 31, 1999
---------------------------------------------------------------------------------------------------
<S>                              <C>        <C>        <C>        <C>       <C>         <C>
Net interest income ..........   $128,130   $142,138   $279,658   $58,552   $(18,731)   $589,747
Provision for loan losses ....     43,578     17,608     26,883         -       (269)     87,800
---------------------------------------------------------------------------------------------------
Net interest income after
     provision for loan losses     84,552    124,530    252,775    58,552    (18,462)    501,947
---------------------------------------------------------------------------------------------------
Noninterest income ...........     26,805     20,539    166,189     1,048      7,899     222,480
Noninterest expense ..........     51,768     91,990    311,638     7,991    (19,582)    443,805
---------------------------------------------------------------------------------------------------
Income before income taxes ...     59,589     53,079    107,326    51,609      9,019     280,622
Income tax expense ...........     20,856     18,578     37,564    18,063      7,684     102,745
---------------------------------------------------------------------------------------------------
Net income ...................   $ 38,733   $ 34,501   $ 69,762   $33,546   $  1,335    $177,877
---------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------
Year ended December 31, 1998
---------------------------------------------------------------------------------------------------
Net interest income ..........   $120,710   $115,582   $261,810   $59,839   $(10,765)   $547,176
Provision for loan losses ....     10,450      5,638     10,844         -        294      27,226
---------------------------------------------------------------------------------------------------
Net interest income after
     provision for loan losses    110,260    109,944    250,966    59,839    (11,059)    519,950
---------------------------------------------------------------------------------------------------
Noninterest income ...........     18,821     17,412    139,181     5,084     11,132     191,630
Noninterest expense ..........     46,967     79,826    292,340     7,216      2,437     428,786
---------------------------------------------------------------------------------------------------
Income before income taxes ...     82,114     47,530     97,807    57,707     (2,364)    282,794
Income tax expense ...........     28,740     16,636     34,233    20,197      3,190     102,996
---------------------------------------------------------------------------------------------------
Net income ...................   $ 53,374   $ 30,894   $ 63,574   $37,510   $ (5,554)   $179,798
---------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------
Year ended December 31, 1997
---------------------------------------------------------------------------------------------------
Net interest income ..........   $ 95,046   $ 84,393   $274,488   $48,654   $ (4,520)   $498,061
Provision for loan losses ....      1,068        577      1,660         -        128       3,433
---------------------------------------------------------------------------------------------------
Net interest income after
     provision for loan losses     93,978     83,816    272,828    48,654     (4,648)    494,628
---------------------------------------------------------------------------------------------------
Noninterest income ...........     16,193     13,591    117,317     2,064     10,963     160,128
Noninterest expense ..........     41,273     64,960    300,772     6,302      7,943     421,250
---------------------------------------------------------------------------------------------------
Income before income taxes ...     68,898     32,447     89,373    44,416     (1,628)    233,506
Income tax expense ...........     24,114     11,356     31,281    15,545      3,799      86,095
---------------------------------------------------------------------------------------------------
Net income ...................   $ 44,784   $ 21,091   $ 58,092   $28,871   $ (5,427)   $147,411
===================================================================================================
</TABLE>

         Each  segment's  balance  sheet is  adjusted to reflect its net funding
position.  Assets are  increased if excess funds are provided;  liabilities  are
increased if the funds are needed to support assets. Segment assets and deposits
are decreased for cash items in process of  collection,  which are  reclassified
from assets to deposits.

         The Consumer  Banking Segment  contains an intangible  asset related to
certain  mortgage  servicing  rights  associated with loans  originated and sold
before  January 1, 1995 and all loans  originated  and retained in the Company's
loan portfolio after  origination.  Noninterest income is adjusted for gains and
fees associated with these mortgage servicing rights, and noninterest expense is
adjusted for the  amortization  of these mortgage  servicing  rights.  Generally
accepted  accounting  principles  do  not  allow  the  capitalization  of  these
servicing rights;  therefore, they are not currently recorded in these financial
statements.

         Each  segment's net interest  income  includes an adjustment  for match
funding of the  segment's  earning  assets  and  liabilities.  Match  funding is
calculated as the economic spread value  attributable to the various products of
the segment and indicates the historical  interest-rate risk taken by the entity
as  a  whole.   Interest   income  for   tax-exempt   loans  is  adjusted  to  a
taxable-equivalent  basis.  Each segment is charged a provision  for loan losses
that is  determined  based on each loan's risk rating or loan type. In addition,
each reportable  segment  recognizes  income tax assuming a 35% income tax rate.
State income tax expense is included in the Other category.

         Direct support costs, such as deposit servicing,  technology,  and loan
servicing   and   underwriting,   are   allocated  to  each  segment   based  on
activity-based  cost studies,  where  appropriate,  or on various  statistics or
staff costs.  Indirect costs, such as management expenses and corporate support,
are allocated to each segment based on various  statistics or staff costs. There
are no significant intersegment revenues.

<PAGE>
         The following is a  reconciliation  of segment  totals to  consolidated
totals.

<TABLE>
<CAPTION>
================================================================================
                                      Average        Average        Average
($ in thousands)                       Loans          Assets        Deposits
--------------------------------------------------------------------------------
December 31, 1999
--------------------------------------------------------------------------------
<S>                                 <C>           <C>             <C>
Segment total ...................   $10,455,800   $ 17,546,500    $10,879,500
Excess funds invested ...........             -     (3,189,700)             -
Mortgage servicing rights .......             -        (17,500)             -
Reclassification of cash items in
     process of collection ......             -        297,700        297,700
--------------------------------------------------------------------------------
Consolidated total ..............   $10,455,800   $ 14,637,000    $11,177,200
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
December 31, 1998
--------------------------------------------------------------------------------
Segment total ...................   $ 9,121,600   $ 15,879,200    $ 9,957,000
Excess funds invested ...........             -     (2,911,700)             -
Mortgage servicing rights .......             -        (15,900)             -
Reclassification of cash items in
     process of collection ......             -        261,200        261,200
--------------------------------------------------------------------------------
Consolidated total ..............   $ 9,121,600   $ 13,212,800    $10,218,200
--------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
========================================================================================================================
                                          Provision                             Income Tax
                             Net Interest  for Loan  Noninterest  Noninterest     Expense
($ in thousands)                Income      Losses      Income      Expense      (Benefit)   Net Income
------------------------------------------------------------------------------------------------------------------------
Year ended December 31, 1999
------------------------------------------------------------------------------------------------------------------------
<S>                             <C>          <C>       <C>          <C>          <C>          <C>
Segment total ...............   $ 589,747    $87,800   $ 222,480    $ 443,805    $ 102,745    $ 177,877
Taxable-equivalent adjustment      (4,942)         -           -            -       (1,730)      (3,212)
Mortgage servicing rights ...           -          -      (7,777)      (2,884)      (1,713)      (3,180)
Income tax expense ..........           -          -           -            -       (3,618)       3,618
------------------------------------------------------------------------------------------------------------------------
Consolidated total ..........   $ 584,805    $87,800   $ 214,703    $ 440,921    $  95,684    $ 175,103
------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------
Year ended December 31, 1998
------------------------------------------------------------------------------------------------------------------------
Segment total ...............   $ 547,176    $27,226   $ 191,630    $ 428,786    $ 102,996    $ 179,798
Taxable-equivalent adjustment      (4,382)         -           -            -       (1,534)      (2,848)
Mortgage servicing rights ...           -          -      (4,201)      (2,631)        (550)      (1,020)
Income tax expense ..........           -          -           -            -       (5,026)       5,026
------------------------------------------------------------------------------------------------------------------------
Consolidated total ..........   $ 542,794    $27,226   $ 187,429    $ 426,155    $  95,886    $ 180,956
------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------
Year ended December 31, 1997
------------------------------------------------------------------------------------------------------------------------
Segment total ...............   $ 498,061    $ 3,433   $ 160,128    $ 421,250    $  86,095    $ 147,411
Taxable-equivalent adjustment      (3,981)         -           -            -       (1,393)      (2,588)
Mortgage servicing rights ...           -          -      (3,712)      (2,371)        (469)        (872)
Income tax expense ..........           -          -           -            -       (3,944)       3,944
------------------------------------------------------------------------------------------------------------------------
Consolidated total ..........   $ 494,080    $ 3,433   $ 156,416    $ 418,879    $  80,289    $ 147,895
========================================================================================================================
</TABLE>


Note 25
Contingencies
         The  Company  is a party to  certain  legal  proceedings  arising  from
matters  incidental to its business.  Management  and counsel are of the opinion
that these actions will not have a material effect on the financial condition or
operating results of the Company.