-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, jYjXkzn1J6zixbIIvJcIvQWoQSUCpA0Ak+l1qTgmzY2YRpw6LYZUPZR0G+k7caDv v5pl3/b+SBuayjYS3R9BxA== 0000019617-94-000045.txt : 19940421 0000019617-94-000045.hdr.sgml : 19940421 ACCESSION NUMBER: 0000019617-94-000045 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19940331 ITEM INFORMATION: Other events FILED AS OF DATE: 19940420 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CHEMICAL BANKING CORP CENTRAL INDEX KEY: 0000019617 STANDARD INDUSTRIAL CLASSIFICATION: 6022 IRS NUMBER: 132624428 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-05805 FILM NUMBER: 94523373 BUSINESS ADDRESS: STREET 1: 270 PARK AVE CITY: NEW YORK STATE: NY ZIP: 10017 BUSINESS PHONE: 2122706000 FORMER COMPANY: FORMER CONFORMED NAME: CHEMICAL NEW YORK CORP DATE OF NAME CHANGE: 19880508 8-K 1 FORM 8-K 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 Date of the Report: April 20, 1994 Commission file number 1-5805 -------------- ------ CHEMICAL BANKING CORPORATION ---------------------------------- (Exact name of registrant as specified in its charter) Delaware 13-2624428 -------------------- -------------------- (State or other jurisdiction (I.R.S. Employer of incorporation) Identification No. 270 Park Avenue, New York, NY 10172-2070 ----------------------------- ---------- (Address of principal executive Offices) (Zip Code) Registrant's telephone number, including area code (212) 270-6000 -------------- 2 Item 5. Other Events --------------------- 1. Chemical Banking Corporation ("the Corporation") announced on April 19, 1994, that 1994 first quarter net income was $319 million, compared with $374 million in the same period a year ago. Net income per common share in the first quarter of 1994 was $1.13, compared with $1.35 per share in the same period a year ago. A copy of the Corporation's Press Release announcing the results of operations for the 1994 first quarter is incorporated herein. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits --------------------------------------------------------------- The following exhibits are filed with this Report: Exhibit Number Description -------------- ----------- 99 Press Release - 1994 First Quarter Earnings. 3 SIGNATURE Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CHEMICAL BANKING CORPORATION (Registrant) Dated April 20, 1994 by /s/Joseph L. Sclafani ---------------- --------------------- Joseph L. Sclafani Controller [Principal Accounting Officer] 4 EXHIBIT INDEX Exhibit Number Description Page at Which Located -------------- ----------- --------------------- 99 Press Release 5 EX-99 2 1994 FIRST QUARTER EARNINGS RELEASE 5 CHEMICAL BANKING CORPORATION NEWS RELEASE Press Contact: Ken Herz 212- 270-4621 John Stefans 212- 270-7438 Investor Contact: John Borden 212- 270-7318 New York, April 19 -- Chemical Banking Corporation said today that continued good performance in its core businesses and a sharp decline in credit costs in the first quarter led to net income of $319 million, or $1.13 per common share. These results were 16 percent higher than earnings on a comparable basis of $276 million in the first quarter of 1993, before accounting changes and tax benefits. Reported net income in last year's first quarter was $374 million, or $1.35 per share, when the corporation benefited from $98 million in one-time gains, including a net favorable impact of $35 million from the adoption of new accounting standards and an income tax benefit of $63 million. Results for the first quarter of 1994 included a restructuring charge of $48 million ($28 million after-tax) related to the previously reported closing of 50 New York branches and a staff reduction of 650. On an annualized basis, Chemical expects to save $44 million pre-tax through this rationalization of its branch system, part of an ongoing, corporate-wide program to improve productivity. "The quarter was characterized by major progress in achieving key financial objectives -- growth in fee-based income, a lower risk profile, productivity initiatives and a Double A credit rating," said Walter V. Shipley, chairman and chief executive officer. Earlier this month, Moody's Investors Service raised its rating on long-term deposits and other senior obligations of Chemical Bank to Aa3 from A1. It also raised Chemical Banking Corporation's ratings on commercial paper, senior debt, subordinated debt and preferred stock. Chemical Bank's subordinated debt rating was also upgraded. Total stockholders' equity at March 31 was $11.0 billion, up $490 million from $10.5 billion a year ago. The corporation's estimated Tier I risk-based capital ratio was 8.2 percent at March 31, compared with 7.5 percent a year ago. At March 31, the estimated total risk-based capital ratio was 12.3 percent, up from 11.8 percent a year ago. 6 NET INTEREST INCOME Net interest income for the first quarter was $1.143 billion, compared with $1.149 billion in the same year-ago period. The net yield on interest-earning assets was 3.59 percent in the first quarter, compared with 3.82 percent in the year-ago first quarter. Average interest-earning assets for the first quarter were $129.8 billion, compared with $122.6 billion in the year-ago period. The composition of average earning assets continued to shift in response to growth in liquid assets to support trading businesses and securities, more than offsetting declines in loans. While net interest income was only slightly below the 1993 level, the shift to lower-spread liquid assets has exerted downward pressure on the net yield on interest-earning assets. In the latest quarter, liquid assets and securities averaged $55.3 billion, compared with $41.2 billion in 1993. Total loans averaged $74.5 billion in the first quarter versus $81.4 billion a year ago. NONINTEREST REVENUE Noninterest revenue for the first quarter was $931 million, up from $925 million in the same period a year ago, despite a $67 million decline in trading revenue. The results reflected increases in revenues from corporate finance fees, revolving credit fees, and trust and investment management fees. Fees for revolving credit products were $75 million, up 42 percent from $53 million, reflecting the launch of the Shell MasterCard in the fourth quarter of 1993. Trust and investment management fees were $110 million, up 12 percent from $98 million a year ago, as a result of investments made in the personal trust business. Combined revenues from all trading activities were $185 million in the first quarter, compared with $252 million in the same year-ago period. Results from foreign exchange, risk management products and securities trading were mixed in a challenging environment, while emerging markets trading was weak. Corporate finance fees were $82 million, up from $71 million in the first quarter a year ago. Other noninterest revenue in the first quarter was $149 million, compared with $116 million in the first quarter a year ago. The 1994 first quarter included $45 million in net gains from the sale of LDC-related past due interest and other bonds. The 1993 first quarter included $56 million in revenue from the sale of such bonds. Venture capital revenue increased to $84 million in the first quarter of 1994 compared with $28 million a year ago. Securities gains in the first quarter were $46 million, compared with $70 million in the first quarter of 1993. 7 NONINTEREST EXPENSE Noninterest expense in the first quarter, including the $48 million restructuring charge, was $1.324 billion, compared with $1.276 billion in the first quarter of 1993. The 1993 first quarter results included a one-time restructuring charge of $43 million related to the federally-assisted acquisition in February 1993 of major components of First City Bancorporation of Texas, Inc. by Chemical's affiliate, Texas Commerce Bancshares. Excluding the one-time charges, the 3.5 percent increase in year-over-year non-interest expense is primarily attributable to approximately $26 million in additional operating expenses associated with 1993 acquisitions in Texas and approximately $32 million of operating expenses related to the Shell MasterCard. Foreclosed property expense in the first quarter decreased 51 percent to $35 million from the 1993 first quarter period level of $71 million, reflecting significant progress in managing the corporation's real estate portfolio. Real estate owned totaled $791 million as of March 31, 1994 compared with $1.119 billion on March 31, 1993. For the first quarter, the ratio of noninterest expense (excluding one-time charges) to total revenue was 61.5 percent, compared with 59.5 percent in the first quarter a year ago. PROVISION AND ALLOWANCE FOR LOSSES The provision for losses was $205 million in the first quarter, compared with $286 million in the fourth quarter of 1993 and $312 million in the first quarter of 1993. Consumer net charge-offs were $90 million in the first quarter, compared with $89 million in the fourth quarter and $97 million in the first quarter a year ago. Commercial net charge- offs were $140 million in the first quarter, compared with $197 million in the fourth quarter and $215 million in the first quarter of 1993. Total non-LDC net charge-offs were $230 million in the first quarter, compared with $286 million in the fourth quarter of 1993 and $312 million in the first quarter a year ago. LDC net charge-offs, including losses on sales and swaps, were $6 million in the first quarter, compared with $51 million in the same period a year ago. The provision for losses in the first quarter of 1994 was lower than non-LDC net charge-offs as a result of management's evaluation of continuing improvement in the corporation's credit environment. As a result of the ongoing decline in nonperforming assets, reserve coverage reached 126 percent of nonperforming loans as of March 31, 1994. At March 31, the non-LDC allowance for losses was $2.400 billion, compared with $2.220 billion on the same date a year ago. 8 The LDC allowance at March 31 was $591 million, compared with $768 million on the same date a year ago. Total LDC medium- and long-term outstandings at March 31 were $1.8 billion, versus $3.2 billion on the same date a year ago. NONPERFORMING ASSETS At March 31, total nonperforming assets were $3.203 billion, down $322 million, or 9 percent, from $3.525 billion at December 31 and down $2.503 billion, or 44 percent, from $5.706 billion on March 31 a year ago. Nonperforming assets have declined by $3.384 billion, or 51 percent, since the peak in the third quarter of 1992. Based on the current view of the portfolio, the corporation expects that nonperforming assets will continue to decline in coming quarters. Total non-LDC nonperforming assets at March 31 were $2.679 billion, down from $2.903 billion at December 31 and from $4.476 billion a year ago. Non-LDC nonperforming loans at March 31 were $1.845 billion, down from $1.969 billion at December 31 and down from $3.218 billion at March 31, 1993. Assets acquired as loan satisfactions were $834 million at March 31, down from $934 million at December 31 and down $424 million from $1.258 billion on March 31 a year ago. LDC nonperforming loans were $524 million at March 31, compared with $1.230 billion on the same date a year ago. 9 Nonperforming Assets --------------------- ($ in millions) 3/31/94 12/31/93 3/31/93 ------- -------- ------- Non-LDC nonperforming loans $1,845 $1,969 $3,218 Assets acquired as loan satisfactions 834 934 1,258 ------ ------ ------ Total non-LDC nonperforming assets 2,679 2,903 4,476 ------ ------ ------ LDC nonperforming loans: Brazil 307 403 594 Argentina 6 7 316 Other LDC countries 211 212 320 ------ ------ ------ Total LDC nonperforming loans 524 622 1,230 ------ ------ ------ Total nonperforming assets $3,203 $3,525 $5,706 ====== ====== ====== Allowance for Losses ($ in millions) 3/31/94 3/31/93 ------------------------------------ ------- ------- Total allowance for losses $2,991 $2,988 As a % of total loans 4.0% 3.7% Non-LDC allowance for losses $2,400 $2,220 As a % of non-LDC loans 3.3% 2.9% LDC allowance for losses $591 $768 As a % of term outstandings including previous charge-offs with claims retained 59%* 56% * 32% excluding previous charge-offs with claims retained 10 Stockholders' Equity and Capital Ratios --------------------------------------- ($ in billions) 3/31/94 3/31/93 ------- ------- Total stockholders' equity $11.0 $10.5 Common stockholders' equity $9.3 $8.4 Ratios: Total equity to assets 6.6%(a) 7.1% Common equity to assets 5.6%(a) 5.7% Tier I Leverage 6.2%(a,b) 6.7% Risk-based capital: Tier I (4.0% required) 8.2%(b,c) 7.5% Total (8.0% required) 12.3%(b,c) 11.8% (a) On January 1, 1994, the corporation adopted FASI 39, which increased total assets approximately $14.5 billion at March 31, 1994 and total average assets by approximately $13.1 billion for the 1994 first quarter. (b) The 1994 ratios exclude the net unfavorable impact on stockholders' equity of $192 million resulting from adoption of SFAS No. 115 on December 31, 1993. (c) Estimated OTHER FINANCIAL DATA The corporation's effective tax rate was 41.5 percent and 30.3 percent in the first quarter of 1994 and 1993, respectively. Tax expense for the first quarter of 1993 included an income tax benefit of approximately $63 million. Because the corporation recognized its remaining available Federal tax benefits in the third quarter of 1993, the corporation's earnings beginning in the fourth quarter of 1993 were reported on a fully-taxed basis. SFAS No. 115 resulted in a net unfavorable impact of approximately $192 million after-tax on the corporation's stockholders' equity at March 31, 1994 compared with a favorable impact of $215 million at December 31, 1993. The net change from the 1993 year-end was primarily the result of the higher interest rate environment and the declining value of Brady bonds. 11 On January 1, 1994, the corporation adopted FASB Interpretation No. 39, "Offsetting of Amounts Related to Certain Contracts," which changes the reporting of unrealized gains and losses on interest rate and foreign exchange contracts on the balance sheet. The Interpretation requires that gross unrealized gains be reported as assets and gross unrealized losses be reported as liabilities. The Interpretation, however, permits netting of such unrealized gains and losses with the same counterparty when master netting agreements have been executed. The adoption of this Interpretation has resulted in an increase in assets and liabilities of $14.5 billion at March 31, 1994, with unrealized gains reported as Trading Account-Risk Management Instruments and the unrealized losses reported in Other Liabilities. Total assets at March 31 were $166.0 billion, versus $147.5 billion on the same date a year ago. Total loans at March 31 were $74.7 billion, compared with $81.2 billion a year ago. At the end of the first quarter, total deposits were $95.1 billion, compared with $93.2 billion at March 31, 1993. The return on average total assets for the first quarter was .79 percent, compared with 1.06 percent in the same year-ago period. The return on average common stockholders' equity was 12.24 percent for the first quarter, compared with 16.47 percent in the first quarter of 1993. Book value per common share was $36.74 at March 31, versus $33.50 per share on the same date a year ago. TEXAS COMMERCE BANCSHARES Texas Commerce Bancshares (TCB) earned $51 million in the first quarter, versus $29 million in the year-ago first quarter. Excluding the one-time restructuring charge of $43 million ($30 million after-tax) and net benefits of $14 million resulting from the previously-mentioned accounting changes, income for the first quarter of 1993 would have been $45 million. The net yield on interest-earning assets was 3.86 percent in the first quarter, versus 4.18 percent in the 1993 first quarter. At March 31, total assets of TCB were $21.2 billion, versus $21.0 billion a year ago. # # # 12
UNAUDITED CHEMICAL BANKING CORPORATION and Subsidiaries (in millions, except per share and ratio data) Three Months Ended March 31, ------------------------------------------ Pro-Forma(a) 1994 1993 1993 ------- ------- --------- EARNINGS: -------- Income Before Effect of Accounting Changes $ 319 $ 339 $ 276 Net Effect of Changes in Accounting Principles --- 35 35 ------- ------- ------- Net Income $ 319 $ 374 $ 311 ======= ======= ======= Net Income Applicable to Common Stock $ 287 $ 335 $ 272 ======= ======= ======= PER COMMON SHARE: ---------------- Income Before Effect of Accounting Changes $ 1.13 $ 1.21 $ .95 Net Effect of Changes in Accounting Principles --- .14 .14 ------- ------- ------- Net Income $ 1.13 $ 1.35 $ 1.09 ======= ======= ======= Book Value at March 31, $36.74 $ 33.50 Market Value at March 31, $36.38 $ 40.38 Common Stock Dividends Declared $ 0.38(b) $ 0.33 COMMON SHARES: ------------- Average Outstanding 253.2 248.5 Period End Outstanding 253.3 251.5 BALANCE SHEET AVERAGES: ---------------------- Loans $ 74,481 $ 81,423 Securities $ 26,406 $ 23,307 Total Assets $164,152(c) $142,613 Deposits $ 97,093 $ 94,785 Long-Term Debt $ 8,498 $ 7,470 Stockholders' Equity $ 11,166 $ 10,113 PERFORMANCE RATIOS: (Average Balances) (d) ------------------ Return on Assets 0.79%(c) 1.06% Return on Common Stockholders' Equity 12.24% 16.47% Return on Total Stockholders' Equity 11.59% 15.00% CAPITAL RATIOS AT MARCH 31: -------------------------- Total Stockholders' Equity to Assets 6.6%(c) 7.1% Common Stockholders' Equity to Assets 5.6%(c) 5.7% Tier 1 Leverage 6.2%(c)(e) 6.7% Risk-Based Capital: Tier 1 (4.0% required) 8.2%(e)* 7.5% Total (8.0% required) 12.3%(e)* 11.8% (a) The Corporation recognized its remaining available Federal tax benefits in the third quarter of 1993 and as a result the Corporation's earnings beginning in the fourth quarter of 1993 are reported on a fully-taxed basis. The pro-forma column assumes that the Corporation's 1993 first quarter results are reported on a fully-taxed basis. (b) In the fourth quarter of 1993, the Corporation increased its quarterly common stock dividend to $0.38 per share. (c) On January 1, 1994, the Corporation adopted FASI 39, which increased total assets by approximately $14.5 billion at March 31, 1994 and total average assets by approximately $13.1 billion for the 1994 first quarter. (d) Quarterly performance ratios are based on annualized net income amounts. (e) The 1994 amounts exclude the net unfavorable impact on stockholders' equity of $192 million resulting from the adoption of SFAS No. 115. * Estimated.
13 UNAUDITED CHEMICAL BANKING CORPORATION and Subsidiaries CONSOLIDATED STATEMENT OF INCOME (in millions, except per share data) Three Months Ended March 31, --------------------- 1994 1993 ---- ---- INTEREST INCOME Loans $1,307 $ 1,465 Securities 416 428 Trading Assets 173 94 Federal Funds Sold and Securities Purchased Under Resale Agreements 100 76 Deposits with Banks 94 61 ------- ------- Total Interest Income 2,090 2,124 ------- ------- INTEREST EXPENSE Deposits 520 593 Short-Term and Other Borrowings 292 252 Long-Term Debt 135 130 ------- ------- Total Interest Expense 947 975 ------- ------- NET INTEREST INCOME 1,143 1,149 Provision for Losses 205 312 ------- ------- NET INTEREST INCOME AFTER PROVISION FOR LOSSES 938 837 ------- ------- NONINTEREST REVENUE Trust and Investment Management Fees 110 98 Corporate Finance and Syndication Fees 82 71 Service Charges on Deposit Accounts 69 67 Fees for Other Banking Services 290 251 Trading Account and Foreign Exchange Revenue 185 252 Securities Gains 46 70 Other Revenue 149 116 ------- ------- Total Noninterest Revenue 931 925 ------- ------- NONINTEREST EXPENSE Salaries 518 501 Employee Benefits 119 102 Occupancy Expense 146 145 Equipment Expense 84 75 Foreclosed Property Expense 35 71 Restructuring Charge 48 43 Other Expense 374 339 ------- ------- Total Noninterest Expense 1,324 1,276 ------- ------- INCOME BEFORE INCOME TAX EXPENSE AND EFFECT OF ACCOUNTING CHANGES 545 486 Income Tax Expense 226 147 ------- ------- INCOME BEFORE EFFECT OF ACCOUNTING CHANGES 319 339 Net Effect of Changes in Accounting Principles -- 35(a) ------- ------- NET INCOME $ 319 $ 374 ======= ======= NET INCOME APPLICABLE TO COMMON STOCK $ 287 $ 335 ======= ======= PER COMMON SHARE: Income Before Effect of Accounting Changes $ 1.13 $ 1.21 Net Effect of Changes in Accounting Principles -- .14 ------- ------- Net Income $ 1.13 $ 1.35 ======= ======= AVERAGE COMMON SHARES OUTSTANDING 253.2 248.5 [FN] (a) On January 1, 1993, the Corporation adopted SFAS 106 which resulted in a charge of $415 million relating to postretirement benefits and also adopted SFAS 109 which resulted in an income tax benefit of $450 million. 14 UNAUDITED CHEMICAL BANKING CORPORATION and Subsidiaries CONSOLIDATED BALANCE SHEET (in millions) March 31, March 31, 1994 1993 --------- --------- ASSETS Cash and Due from Banks $ 8,286 $ 7,440 Deposits with Banks 3,886 4,137 Federal Funds Sold and Securities Purchased Under Resale Agreements 11,722 9,962 Trading Assets: Debt and Equity Instruments 13,357 7,374 Risk Management Instruments 17,136(a) --- Securities: Held-to-Maturity 10,149 17,053 Available-for-Sale 17,237 7,234 Loans (Net of Unearned Income) 74,661 81,227 Allowance for Losses (2,991) (2,988) Premises and Equipment 2,004 1,717 Due from Customers on Acceptances 1,109 1,246 Accrued Interest Receivable 986 1,013 Assets Acquired as Loan Satisfactions 834 1,258 Other Assets 7,661 10,822 -------- -------- TOTAL ASSETS $166,037 $ 147,495 ======== ======== LIABILITIES Deposits: Demand (Noninterest Bearing) $ 21,473 $ 20,357 Time and Savings 49,939 52,288 Foreign 23,709 20,529 -------- -------- Total Deposits 95,121 93,174 Federal Funds Purchased and Securities Sold Under Repurchase Agreements 16,016 16,071 Other Borrowed Funds 13,348 12,952 Acceptances Outstanding 1,112 1,297 Accounts Payable and Accrued Liabilities 2,158 2,832 Other Liabilities 18,874(a) 2,960 Long-Term Debt 8,447 7,738 -------- -------- TOTAL LIABILITIES 155,076 137,024 -------- -------- STOCKHOLDERS' EQUITY Preferred Stock 1,654 2,048 Common Stock 254 252 Capital Surplus 6,565 6,538 Retained Earnings 2,692 1,645 Net Unrealized Loss on Securities Available-for-Sale (Net of Taxes) (192)(b) --- Treasury Stock, at Cost (12) (12) -------- -------- TOTAL STOCKHOLDERS' EQUITY 10,961 10,471 -------- -------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $166,037 $147,495 ======== ======== [FN] (a) On January 1, 1994, the Corporation adopted FASB Interpretation No. 39. As a result, assets and liabilities increased by $14.5 billion at March 31, 1994 with unrealized gains reported as Trading Assets-Risk Management Instruments and the unrealized losses reported in Other Liabilities. Prior to adoption, unrealized gains and losses were reported net in Other Assets. (b) On December 31, 1993, the Corporation adopted SFAS 115. Securities that are identified as available-for-sale are accounted for at fair value with the related unrealized gains and losses included in stockholders' equity. 15 UNAUDITED CHEMICAL BANKING CORPORATION and Subsidiaries CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (in millions) 1994 1993 -------- ------- BALANCE AT JANUARY 1, $11,164 $ 9,851 ------- ------- Net Income 319 374 Dividends Declared: Preferred Stock (32) (39) Common Stock (96) (83) Issuance of Preferred Stock --- 200 Issuance of Common Stock 13 167 Net Unrealized Loss on Securities Available-for-Sale (Net of Taxes) (407) --- Accumulated Translation Adjustment --- 1 ------- ------- Net Change in Stockholders' Equity (203) 620 ------- ------- BALANCE AT MARCH 31, $10,961 $10,471 ======= ======= 16 UNAUDITED CHEMICAL BANKING CORPORATION and Subsidiaries ALLOWANCE RELATED INFORMATION (in millions, except ratios) Three Months Ended Allowance for Losses March 31, ----------------------- 1994 1993 -------- -------- Non-LDC Allowance: Balance at Beginning of Period $2,423 $ 2,206 Provision for Losses 205 312 Net Charge-Offs (230) (312) Allowance Related to Purchased Assets --- 19(a) Other 2 (5) ------- ------- Balance at End of Period 2,400 2,220 ------- ------- LDC Allowance: Balance at Beginning of Period 597 819 Provision for Losses -- -- Net Charge-Offs and Losses on Sales and Swaps (6) (51) ------- ------- Balance at End of Period 591 768 ------- ------- Total Allowance for Losses $2,991 $ 2,988 ======= ======= Allowance Coverage Ratios (at period-end): Allowance to Total Loans 4.0% 3.7% Allowance to Nonperforming Loans 126 67 Non-LDC Allowance to Non-LDC Nonperforming Loans 130 69 LDC Allowance to LDC Nonperforming Loans 113 62 LDC Allowance to: Medium- and Long-Term LDC Outstandings 32 24 Total LDC Outstandings 16 19 LDC Allowance Adjusted for Prior Charge-Offs with Claims Retained to Medium- and Long-Term Outstandings and Claims Retained 59 56 [FN] (a) Related to the First City Banks acquisition. 17
UNAUDITED CHEMICAL BANKING CORPORATION and Subsidiaries Average Consolidated Balance Sheet, Interest and Rates (Taxable-Equivalent Interest and Rates; in millions) Three Months Ended Three Months Ended March 31, 1994 March 31, 1993 ----------------------------------- ------------------------------------ Average Rate Average Rate Balance Interest (Annualized) Balance Interest (Annualized) -------- ---------- ----------- ------- ---------- ------------ ASSETS Deposits with Banks $ 5,153 $ 94 7.37% $ 3,521 $ 61 7.04% Federal Funds Sold and Securities Purchased Under Resale Agreements 11,887 100 3.42% 8,711 76 3.52% Trading Assets 11,877 173 5.92% 5,638 94 6.75% Securities 26,406 417 6.40% 23,307 429 7.47% Loans 74,481 1,311 7.14% 81,423 1,469 7.32% -------- ------ -------- ------ Total Interest- Earning Assets $129,804 $2,095 6.54% $ 122,600 2,129 7.04% ------ ------ Allowance for Losses (3,086) (3,115) Cash and Due from Banks 8,833 8,376 Risk Management Instruments 15,393 -- Other Assets 13,208 14,752 -------- -------- Total Assets $164,152 $ 142,613 ======== ======== LIABILITIES Domestic Retail Time Deposits $ 46,047 $ 248 2.18% $ 45,705 $ 308 2.73% Domestic Negotiable Certificates of Deposit and Other Deposits 5,450 46 3.43% 6,550 49 3.05% Deposits in Foreign Offices 22,971 226 3.99% 21,519 236 4.45% -------- ------ -------- ------ Total Interest-Bearing Deposits 74,468 520 2.83% 73,774 593 3.26% -------- ------ -------- ------ Short-Term and Other Borrowings: Federal Funds Purchased and Securities Sold Under Repurchase Agreements 16,060 137 3.47% 16,189 138 3.46% Commercial Paper 2,408 21 3.55% 2,385 22 3.66% Other 9,665 134 5.61% 5,818 92 6.45% -------- ------ -------- ------ Total Short-Term and Other Borrowings 28,133 292 4.21% 24,392 252 4.19% Long-Term Debt 8,498 135 6.43% 7,470 130 7.04% -------- ------ -------- ------ Total Interest- Bearing Liabilities 111,099 947 3.46% 105,636 975 3.74% -------- ------ -------- ------- Demand Deposits 22,625 21,011 Risk Management Instruments 13,068 -- Other Liabilities 6,194 5,853 -------- -------- Total Liabilities 152,986 132,500 -------- -------- STOCKHOLDERS' EQUITY Preferred Stock 1,654 1,865 Common Stockholders' Equity 9,512 8,248 -------- -------- Total Stockholders' Equity 11,166 10,113 Total Liabilities and -------- -------- Stockholders' Equity $164,152 $142,613 ======== ======== SPREAD ON INTEREST-BEARING LIABILITIES 3.08% 3.30% ===== ===== NET INTEREST INCOME AND NET YIELD ON INTEREST-EARNING ASSETS $1,148 3.59% $1,154 3.82% ====== ===== ====== =====
18 UNAUDITED TEXAS COMMERCE BANCSHARES, INC. and Subsidiaries CONDENSED CONSOLIDATED STATEMENT OF INCOME (in millions) Three Months Ended March 31, ----------------- 1994 1993 ---- ---- NET INTEREST INCOME $ 162 $ 170 Provision for Losses (10) 6 ------- ------- Net Interest Income After Provision for Losses 172 164 NONINTEREST REVENUE 106 93 NONINTEREST EXPENSE 197 240(a) ------- ------- Income Before Income Tax Expense and Effect of Accounting Changes 81 17 Income Tax Expense 30 2 ------- ------- Income Before Effect of Accounting Changes 51 15 Net Effect of Changes in Accounting Principles -- 14 ------- ------- NET INCOME $ 51 $ 29 ======= ======= [FN] (a) Includes a $43 million restructuring charge associated with the First City Banks acquisition. TEXAS COMMERCE BANCSHARES, INC. and Subsidiaries CONDENSED CONSOLIDATED BALANCE SHEET (in millions) Three Months Ended March 31, ------------------ 1994 1993 ----- ----- ASSETS Cash and Due from Banks $ 2,235 $ 1,880 Deposits with Banks 5 15 Federal Funds Sold and Securities Purchased Under Resale Agreements 5,093 4,776 Trading Assets 29(a) 17 Securities: Held-to-Maturity 1,391 1,816 Available-for-Sale 1,452 465 Loans (Net of Unearned Income) 9,550 10,721 Allowance for Losses (338) (389) Assets Acquired as Loan Satisfactions 80 168 All Other Assets 1,675 1,575 ------- ------- TOTAL ASSETS $21,172 $ 21,044 ======= ======= LIABILITIES Demand Deposits (Noninterest Bearing) $ 5,872 $ 5,415 Domestic and Foreign Interest Bearing Deposits 10,665 11,816 All Other Liabilities 2,857 2,103 ------- ------- TOTAL LIABILITIES 19,394 19,334 STOCKHOLDER'S EQUITY 1,778 1,710 ------- ------- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $21,172 $ 21,044 ======= ======= [FN] (a) Includes $23 million of risk management instruments as a result of the adoption of FASB Interpretation No. 39. -----END PRIVACY-ENHANCED MESSAGE-----