SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of the Report: January 18, 1996 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 10017
- ----------------------------- --------------
(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 January 16,
1996, that its full year 1995 net income was $1,805 million, an increase of
25 percent from 1994 net income on a comparable basis of $1,446
million. Primary earnings per share were $6.73, up 29 percent from $5.20
in 1994. Fully diluted earnings per share increased 26 percent to $6.47,
compared with $5.13 in 1994. The 1994 results exclude a restructuring
charge of $260 million ($152 million after-tax). Including the
restructuring charge, net income for 1995 was up 39 percent from $1,294
million in 1994, with primary earnings per share up 46 percent from $4.60,
and up 43 percent on a fully diluted basis from $4.54 per share.
The Corporation's 1995 fourth quarter net income was $490 million, an
increase of 48 percent from net income on a comparable basis of $331
million for the same period a year ago. Primary earnings per share in the
1995 fourth quarter increased 48 percent to $1.81 per share, compared with
$1.22 per share in the fourth quarter of 1994. Fully diluted earnings per
share for the 1995 fourth quarter were $1.81, compared with $1.20 in the
prior year period. Including the 1994 restructuring charge, the
Corporation's 1995 fourth quarter net income rose 174 percent from $179
million, and both primary and fully diluted earnings per share increased
197 percent from $.61 per share.
A copy of the Corporation's Press Release announcing the results of
operations for the 1995 fourth 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
-------------- -----------
99.1 Press Release -
1995 Fourth Quarter Earnings.
3
SIGNATURE
Pursuant to the requirements of the Securities 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 January 18, 1996 by /s/ JOSEPH L. SCLAFANI
- ---------------------------- -------------------------
Joseph L. Sclafani
Controller
[Principal Accounting Officer]
4
EXHIBIT INDEX
Exhibit Number Description Page at Which Located
- -------------- ----------- ---------------------
99.1 Press Release - 1995 Fourth
Quarter Earnings 5
5
Press Contact: Ken Herz
(212) 270-4621
John Stefans
(212) 270-7438
Investor Contact: John Borden
(212) 270-7318
For Immediate Release
Tuesday, January 16, 1996
New York, January 16 -- Chemical Banking Corporation today reported
record net income for the full year 1995 of $1.805 billion, an increase of 25
percent from 1994 net income on a comparable basis of $1.446 billion. Primary
earnings per share were $6.73, up 29 percent from $5.20 in 1994. Fully diluted
earnings per share rose 26 percent to $6.47, compared with $5.13 a year ago. The
1994 results exclude a restructuring charge of $260 million ($152 million
after-tax). Including the restructuring charge, net income for 1995 was up 39
percent from $1.294 billion in 1994, with primary earnings per share up 46
percent from $4.60, and up 43 percent on a fully diluted basis from $4.54 per
share.
Net income for the 1995 fourth quarter was $490 million, up 48 percent
from net income on a comparable basis of $331 million in the year-ago same
period. Primary earnings per share in the fourth quarter increased 48 percent to
$1.81, compared with $1.22 in 1994. Fully diluted earnings per share rose 51
percent to $1.81, from $1.20. Including the 1994 restructuring charge, 1995
fourth quarter net income rose 174 percent from $179 million, and both primary
and fully diluted earnings per share increased 197 percent from $.61 per share.
"Chemical had an outstanding year in 1995. We achieved record earnings
and delivered on all of the performance initiatives we announced on December 1,
1994," said Walter V. Shipley, chairman and chief executive officer.
"Characterized by good revenue growth, lower expenses and a disciplined use of
capital, these results set a solid base for our merger with Chase."
6
The corporation's return on average common stockholders' equity was
17.7 percent for the fourth quarter, compared with 12.7 percent a year ago
(excluding the restructuring charge), and 17.1 percent for the full year 1995,
compared with 13.9 percent in 1994 (excluding the restructuring charge). The
efficiency ratio was 59 percent in the fourth quarter, compared with 67 percent
a year ago, and 59 percent for the full year 1995 compared with 63 percent in
1994. The corporation's estimated Tier I risk-based capital ratio was 8.4
percent at December 31, compared with 8.0 percent a year ago. At December 31,
the estimated total risk-based capital ratio was 12.1 percent, compared with
12.0 percent a year ago.
The corporation completed two transactions in the fourth quarter as
part of its program to free up capital through the sale of non-strategic
businesses. On December 15, Chemical completed the sale of half its 40 percent
interest in The CIT Group to The Dai-Ichi Kangyo Bank for approximately $430
million. On October 6, the corporation completed the sale of its banking
operations in southern and central New Jersey to PNC Bank Corp. for
approximately $490 million. The two transactions resulted in a net gain of
approximately $25 million after-tax.
Also in the fourth quarter, the corporation securitized $2.25 billion
in credit card receivables. As a result of this securitization, the corporation
experienced lower net interest income, offset by a lower provision for credit
losses and higher fee revenue.
Net Interest Income
Net interest income for the fourth quarter was $1,174 million, compared
with $1,169 million in the same year-ago period. The credit card securitization
and the sale of certain New Jersey operations resulted in $49 million and $33
million reductions in net interest income for the fourth quarter, respectively.
Average interest-earning assets for the fourth quarter were $148.3
billion, compared with $131.8 billion in the same year-ago period. The net yield
on average interest-earning assets was 3.16 percent in the fourth quarter,
compared with 3.55 percent in the fourth quarter of 1994, largely reflecting the
impact of the credit card securitization.
Noninterest Revenue
Noninterest revenue for the fourth quarter was $958 million, up 18
percent from $815 million in the same period a year ago.
7
Corporate finance and syndication fees were $126 million in the fourth
quarter, compared with $133 million in the fourth quarter a year ago. For the
full year 1995, corporate finance and syndication fees were a record $531
million, up 31 percent, reflecting increases in global investment banking
activities, especially loan syndications and new issues of high-yield
securities.
Fees for other financial services were $337 million in the fourth
quarter, compared with $294 million in the year-ago period, reflecting
additional revenues from credit card growth and securitization.
Noninterest revenues from trading activities were $184 million in the
fourth quarter, compared with $45 million in 1994. Net interest income related
to trading activities in the fourth quarter was $57 million, compared with $10
million in 1994.
Securities gains in the fourth quarter were $21 million, compared with
a gain of $1 million in the fourth quarter of 1994.
Other noninterest revenue was $123 million in the fourth quarter,
compared with $165 million in the year-ago period. Revenues from equity and
equity-related investments were $68 million, compared with $127 million in the
same year-ago period.
Noninterest Expense
Noninterest expense in the fourth quarter was $1,250 million, down 6
percent from $1,333 million in the fourth quarter of 1994, excluding the 1994
restructuring charge. The sale of certain banking operations in New Jersey
reduced operating expenses in the fourth quarter by $31 million. Expense levels
in the fourth quarter also reflect reduced FDIC premium expense of $31 million
when compared with 1994. For the full year 1995, noninterest expense on a
comparable basis was slightly lower than 1994, meeting the corporation's goal of
flat expenses in 1995, and reflecting the benefits from the margin improvement
program.
Provision and Allowance for Losses
The provision for losses for the fourth quarter was $116 million,
compared with $122 million in the third quarter of 1995 and $85 million in the
fourth quarter of 1994.
8
Total net charge-offs were $116 million in the fourth quarter, compared
with $258 million in the fourth quarter a year ago. Included in net charge-offs
were consumer net charge-offs of $118 million in the fourth quarter of 1995,
compared with $111 million in the fourth quarter of 1994, due largely to growth
in outstandings in the credit card portfolio. Not included in 1995 consumer net
charge-offs was $12 million related to the credit card securitization.
Recoveries in the fourth quarter were $97 million, compared with $82
million in the year-ago period. Included in the recoveries were $81 million for
commercial loans, compared with $64 million in the fourth quarter of 1994.
At December 31, the total allowance for losses was $2,379 million,
compared with $2,480 million on the same date a year ago.
Nonperforming Assets
At December 31, total nonperforming assets were $906 million, down from
$1,047 million at September 30 and down $233 million, from $1,139 million on
December 31, 1994.
Nonperforming loans at December 31 were $856 million, down from $991
million at September 30 and down from $929 million at December 31, 1994. Assets
acquired as loan satisfactions were $50 million at December 31, compared with
$56 million at September 30 and $210 million on December 31, 1994.
Other Financial Data
During the fourth quarter of 1995 the corporation reassessed its
securities portfolio and transferred $5 billion of held to maturity securities
(including developing markets securities) under a one-time window permitted by
SFAS 115 into the available for sale category. As of December 31, 1995, the
impact of this transfer reduced shareholders' equity by $389 million after-tax.
The impact of marking all of the available for sale securities to
market resulted in a net unfavorable impact of approximately $303 million
after-tax on the corporation's stockholders' equity at December 31, 1995,
compared with a net unfavorable impact of $135 million after-tax at September
30, 1995 and $438 million after-tax at December 31, 1994. The market valuation
does not include the impact of changes in interest rates on related funding.
9
Total assets at December 31, 1995 were $182.9 billion, compared with
$171.4 billion on the same date a year ago. Total loans at December 31 were
$82.1 billion, compared with $78.8 billion a year ago. At December 31, 1995,
total deposits were $98.4 billion, compared with $96.5 billion a year ago.
The return on average total assets (ROA) was 1.05 percent for the
fourth quarter, compared with .78 percent in the same year-ago period, excluding
the restructuring charge of $260 million. The ROA for the full year was 1.00
percent, compared with .87 percent for all of 1994.
Book value per common share was $42.56 at December 31, compared with
$37.88 per share on the same date a year ago.
10
UNAUDITED
CHEMICAL BANKING CORPORATION and Subsidiaries
(in millions, except per share and ratio data)
Three Months Ended For The Year Ended
December 31, December 31,
------------------------------------ -----------------------------------
Pro- Pro-
Forma(a) Forma(a)
1995 1994 1994 1995 1994 1994
EARNINGS: -------- -------- --------- -------- ------- ---------
--------
Income Before Effect of Accounting Change $ 490 $ 179 $ 331 $ 1,816 $ 1,294 $ 1,446
Effect of Change in Accounting Principle -- -- -- (11)(c) -- --
------- -------- -------- -------- -------- --------
Net Income $ 490 $ 179 $ 331 $ 1,805 $ 1,294 $ 1,446
======= ======== ======== ======== ======== ========
Net Income Applicable to Common Stock $ 466 $ 149 $ 301 $ 1,700 $ 1,156 $ 1,308
======= ======== ======== ======== ======== ========
INCOME PER COMMON SHARE:(b)
- -----------------------
Primary:
Income Before Effect of Accounting Change $ 1.81 $ 0.61 $ 1.22 $ 6.77 $ 4.60 $ 5.20
Effect of Change in Accounting Principle -- -- -- (0.04)(c) -- --
--------- --------- -------- -------- -------- --------
Net Income $ 1.81 $ 0.61 $ 1.22 $ 6.73 $ 4.60 $ 5.20
========= ========= ======== ======== ======== ========
Assuming Full Dilution:
Income Before Effect of Accounting Change $ 1.81 $ 0.61 $ 1.20 $ 6.51 $ 4.54 $ 5.13
Effect of Change in Accounting Principle -- -- -- (0.04)(c) -- --
--------- --------- -------- -------- -------- --------
Net Income $ 1.81 $ 0.61 $ 1.20 $ 6.47 $ 4.54 $ 5.13
========= ========= ======== ======== ======== ========
Book Value at December 31, $ 42.56 $ 37.88 $ 42.56 $ 37.88
Market Value at December 31, $ 58.75 $ 35.88 $ 58.75 $ 35.88
Common Stock Dividends Declared (d) $ 0.50 $ 0.44 $ 1.94 $ 1.64
COMMON SHARES OUTSTANDING:
- -------------------------
Average Common and Common Equivalent Shares 256.5 246.3 252.6 251.3
Average Common Shares Assuming Full Dilution 257.3 254.0 263.8 258.9
Common Shares at Period End 250.5 244.5 250.5 244.5
PERFORMANCE RATIOS:(Average Balances)(e)
- ------------------
Return on Assets 1.05% 0.42% 0.78% 1.00% 0.78% 0.87%
Return on Common Stockholders' Equity 17.66% 6.29% 12.70% 17.08% 12.32% 13.94%
Return on Total Stockholders' Equity 16.59% 6.54% 12.10% 16.00% 11.80% 13.19%
CAPITAL RATIOS AT DECEMBER 31:
- -----------------------------
Common Stockholders' Equity to Assets 5.8% 5.4%
Total Stockholders' Equity to Assets 6.5% 6.2%
Tier 1 Leverage (f) 6.4% 6.3%
Risk-Based Capital:(f)
Tier 1 (4.0% required) 8.4%* 8.0%
Total (8.0% required) 12.1%* 12.0%
(a) The pro-forma columns exclude the impact of the $260 million restructuring
charge ($152 million after-tax) recorded in the fourth quarter of 1994.
(b) Effective with the 1995 second quarter, the Corporation changed its
reporting of earnings per share ("EPS") for all periods from "simple" EPS
(which is based solely on the average number of common shares outstanding)
to reporting "primary" and "fully diluted" EPS (which are based on the
average number of common and common equivalent shares outstanding).
Previously, the Corporation reported simple EPS, since the differences
between simple EPS and primary EPS or simple EPS and fully diluted EPS
were not material (less than 3%).
(c) On January 1, 1995, the Corporation adopted SFAS 106 for the accounting
for other postretirement benefits relating to the Corporation's foreign
plans.
(d) The Corporation increased its quarterly common stock dividend from $0.44
per share to $0.50 per share in the second quarter of 1995, and from $0.38
per share to $0.44 per share in the third quarter of 1994.
(e) Performance ratios for three months ended December 31, 1995 and 1994
are based on annualized net income amounts.
(f) For all periods presented, risk-based capital and leverage ratios exclude
the assets and off-balance sheet financial instruments of the
Corporation's securities subsidiary, Chemical Securities Inc., as well as
the Corporation's investment in this subsidiary. These ratios also exclude
the net unfavorable impact on stockholders' equity resulting from the
adoption of SFAS 115.
* Estimated
11
UNAUDITED
CHEMICAL BANKING CORPORATION and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
(in millions, except per share data)
Three Months Ended
-------------------------------------------
Dec. 31, Sept. 30, Dec. 31,
1995 1995 1994
-------- ---------- --------
INTEREST INCOME
Loans $ 1,749 $ 1,844 $ 1,575
Securities 609 535 445
Trading Assets 263 211 177
Federal Funds Sold and Securities Purchased
Under Resale Agreements 173 181 178
Deposits with Banks 58 62 91
------- -------- --------
Total Interest Income 2,852 2,833 2,466
======= ======= =======
INTEREST EXPENSE
Deposits 932 943 718
Short-Term and Other Borrowings 612 559 444
Long-Term Debt 134 134 135
-------- -------- -------
Total Interest Expense 1,678 1,636 1,297
-------- -------- -------
NET INTEREST INCOME 1,174 1,197 1,169
Provision for Losses 116 122 85
------- -------- --------
NET INTEREST INCOME AFTER PROVISION FOR LOSSES 1,058 1,075 1,084
------- -------- --------
NONINTEREST REVENUE
Trust and Investment Management Fees 95 96 99
Corporate Finance and Syndication Fees 126 157 133
Service Charges on Deposit Accounts 72 75 78
Fees for Other Financial Services 337 307 294
Trading Revenue 184 213 45
Securities Gains 21 47 1
Other Revenue 123 82 165
------- --------- --------
Total Noninterest Revenue 958 977 815
------- --------- --------
NONINTEREST EXPENSE
Salaries 613 616 571
Employee Benefits 106 104 110
Occupancy Expense 125 131 142
Equipment Expense 100 97 107
Foreclosed Property Expense (2) -- 2
Other Expense 308 309 401
------- ------ -------
Total Noninterest Expense Before Restructuring Charge 1,250 1,257 1,333
Restructuring Charge -- -- 260
------- ------- -------
Total Noninterest Expense 1,250 1,257 1,593
------- -------- -------
INCOME BEFORE INCOME TAX EXPENSE 766 795 306
Income Tax Expense 276 318 127
-------- -------- -------
NET INCOME $ 490 $ 477 $ 179
======== ======== =======
NET INCOME APPLICABLE TO COMMON STOCK $ 466 $ 452 $ 149
======== ======== =======
INCOME PER COMMON SHARE:
Primary $ 1.81 $ 1.74 $ 0.61
======== ======== ========
Assuming Full Dilution $ 1.81 $ 1.70 $ 0.61
======== ======== ========
12
UNAUDITED
CHEMICAL BANKING CORPORATION and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
(in millions, except per share data)
For The Year Ended
December 31,
------------------------------
1995 1994
-------- --------
INTEREST INCOME
Loans $ 7,024 $ 5,730
Securities 2,162 1,715
Trading Assets 878 722
Federal Funds Sold and Securities
Purchased Under Resale Agreements 785 550
Deposits with Banks 269 371
---------- ----------
Total Interest Income 11,118 9,088
---------- ---------
INTEREST EXPENSE
Deposits 3,657 2,378
Short-Term and Other Borrowings 2,226 1,500
Long-Term Debt 546 536
--------- ----------
Total Interest Expense 6,429 4,414
---------- ---------
NET INTEREST INCOME 4,689 4,674
Provision for Losses 478 550
---------- ----------
NET INTEREST INCOME AFTER PROVISION FOR LOSSES 4,211 4,124
---------- ----------
NONINTEREST REVENUE
Trust and Investment Management Fees 379 421
Corporate Finance and Syndication Fees 531 405
Service Charges on Deposit Accounts 297 300
Fees for Other Financial Services 1,228 1,148
Trading Revenue 624 645
Securities Gains 119 66
Other Revenue 588 612
--------- ----------
Total Noninterest Revenue 3,766 3,597
---------- ----------
NONINTEREST EXPENSE
Salaries 2,332 2,205
Employee Benefits 434 439
Occupancy Expense 520 573
Equipment Expense 395 382
Foreclosed Property Expense (23) 41
Other Expense 1,343 1,561
---------- ---------
Total Noninterest Expense
Before Restructuring Charge 5,001 5,201
Restructuring Charge -- 308
--------- ----------
Total Noninterest Expense 5,001 5,509
--------- ----------
INCOME BEFORE INCOME TAX EXPENSE AND EFFECT
OF ACCOUNTING CHANGE 2,976 2,212
Income Tax Expense 1,160 918
---------- ----------
INCOME BEFORE EFFECT OF ACCOUNTING CHANGE 1,816 1,294
Effect of Change in Accounting Principle (11) --
---------- ----------
NET INCOME $ 1,805 $ 1,294
========== ==========
NET INCOME APPLICABLE TO COMMON STOCK $ 1,700 $ 1,156
========== ==========
INCOME PER COMMON SHARE:
Primary:
Income Before Effect of Accounting Change $ 6.77 $ 4.60
Effect of Change in Accounting Principle (0.04) --
---------- ----------
Net Income $ 6.73 $ 4.60
========== ==========
Assuming Full Dilution:
Income Before Effect of Accounting Change $ 6.51 $ 4.54
Effect of Change in Accounting Principle (0.04) --
----------- ----------
Net Income $ 6.47 $ 4.54
=========== ==========
13
UNAUDITED
CHEMICAL BANKING CORPORATION and Subsidiaries
NONINTEREST REVENUE DETAIL
(in millions)
Three Months Ended For The Year Ended
--------------------------------- ----------------------------
Dec. 31, Sept.30, Dec. 31, December 31, December 31,
1995 1995 1994 1995 1994
-------- -------- ------- ------------- ------------
TRUST AND INVESTMENT MANAGEMENT FEES:
Personal Trust Fees $ 52 $ 51 $ 50 $ 206 $ 206
Corporate and Institutional Trust Fees 33 34 40 131 176
Other, primarily Foreign Asset Management 10 11 9 42 39
-------- -------- -------- --------- --------
Total $ 95 $ 96 $ 99 $ 379 $ 421
======== ======== ======== ========= ========
FEES FOR OTHER FINANCIAL SERVICES:
Credit Card Revenue $ 128 $ 87 $ 86 $ 378 $ 315
Fees in Lieu of Compensating Balances 46 47 47 187 203
Commissions on Letters of Credit and Acceptances 37 40 35 154 151
Loan Commitment Fees 21 22 20 87 86
Mortgage Servicing Fees 24 24 22 94 79
Other Fees 81 87 84 328 314
-------- -------- -------- -------- --------
Total $ 337 $ 307 $ 294 $ 1,228 $ 1,148
======== ======== ======== ======== ========
TRADING REVENUE:
Interest Rate Contracts $ 68 $ 48 $ 73 $ 173 $ 391
Foreign Exchange Revenue 69 70 (4)(a) 280 152(a)
Debt Instruments and Other 47 95 (24) 171 102
-------- -------- -------- -------- --------
Total $ 184 $ 213 $ 45 $ 624 $ 645
======== ======== ======== ======== ========
OTHER REVENUE:
Revenue from Equity-Related Investments $ 68 $ 77 $ 127 $ 378 $ 362
Net Gains (Losses) on Emerging Markets Bond Sales -- (36) 2 (86) 127
All Other Revenue 55 41 36 296 (b) 123
-------- -------- -------- -------- --------
Total $ 123 $ 82 $ 165 $ 588 $ 612
======== ======== ======== ======== ========
(a) Reflects $70 million reduction as a result of losses sustained from
unauthorized foreign exchange transactions involving the Mexican peso.
(b) Includes $85 million gain related to the sale of the Corporation's
investment in Far East Bank and Trust Company.
CHEMICAL BANKING CORPORATION and Subsidiaries
NONINTEREST EXPENSE DETAIL
(in millions)
Three Months Ended For The Year Ended
---------------------------------- -------------------------
Dec. 31, Sept. 30, Dec. 31, December 31,
1995 1995 1994 1995 1994
------- -------- ------- --------- -------
OTHER EXPENSE: (a)
Professional Services $ 48 $ 50 $ 65 $ 205 $ 225
Marketing Expense 40 44 44 178 186
FDIC Assessments 7 (3)(b) 38 77 (b) 160
Telecommunications 34 37 37 148 153
Amortization of Intangibles 21 25 30 101 115
All Other 158 156 187 634 722
-------- -------- -------- -------- --------
Total $ 308 $ 309 $ 401 $ 1,343 $ 1,561
======== ======== ======== ======== ========
(a) Certain prior period amounts have been reclassified to conform with the
December 31, 1995 presentation.
(b) Includes the impact of a FDIC refund due to a reduction in the
assessment rate.
14
UNAUDITED
CHEMICAL BANKING CORPORATION and Subsidiaries
CONSOLIDATED BALANCE SHEET
(in millions)
December 31, December 31,
1995 1994
------------ ------------
ASSETS
Cash and Due from Banks $ 9,077 $ 8,832
Deposits with Banks 2,666 5,649
Federal Funds Sold and Securities
Purchased Under Resale Agreements 8,033 12,797
Trading Assets:
Debt and Equity Instruments 18,317 11,093
Risk Management Instruments 17,703 17,709
Securities:
Held-to-Maturity 4,628 8,566
Available-for-Sale 30,157 18,431
Loans (Net of Unearned Income) 82,143 78,767
Allowance for Credit Losses (2,379) (2,480)
Premises and Equipment 2,038 2,134
Due from Customers on Acceptances 1,179 1,088
Accrued Interest Receivable 1,328 1,190
Assets Acquired as Loan Satisfactions 50 210
Assets Held for Accelerated Disposition 412 526
Other Assets 7,574 6,911
----------- ----------
TOTAL ASSETS $ 182,926 $ 171,423
=========== ==========
LIABILITIES
Deposits:
Demand (Noninterest Bearing) $ 21,673 $ 21,399
Time and Savings 44,491 46,799
Foreign 32,253 28,308
----------- ----------
Total Deposits 98,417 96,506
Federal Funds Purchased and Securities
Sold Under Repurchase Agreements 25,675 23,098
Other Borrowed Funds 14,047 11,843
Acceptances Outstanding 1,193 1,104
Accounts Payable and Accrued Liabilities 2,690 2,361
Other Liabilities 21,663 17,808
Long-Term Debt 7,329 7,991
----------- ----------
TOTAL LIABILITIES 171,014 160,711
----------- ----------
STOCKHOLDERS' EQUITY
Preferred Stock 1,250 1,450
Common Stock 255 254
Capital Surplus 6,479 6,544
Retained Earnings 4,493 3,263
Net Unrealized Loss on Securities Available-for-Sale, Net of Taxes (303) (438)
Treasury Stock, at Cost (262) (361)
----------- ----------
TOTAL STOCKHOLDERS' EQUITY 11,912 10,712
----------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 182,926 $ 171,423
=========== ==========
15
UNAUDITED
CHEMICAL BANKING CORPORATION and Subsidiaries
CONSOLIDATED STATEMENT OF CHANGES
IN STOCKHOLDERS' EQUITY
(in millions)
For The Year Ended
December 31,
--------------------------------
1995 1994
---------- ----------
BALANCE AT JANUARY 1, $ 10,712 $ 11,164
----------- ----------
Net Income 1,805 1,294
Dividends Declared:
Preferred Stock (105) (126)
Common Stock (480) (406)
Issuance of Preferred Stock -- 200
Conversion of Preferred Stock (200)(a) --
Redemption of Preferred Stock -- (404)
Premium on Redemption of Preferred Stock -- (12)
Issuance of Common Stock 1 1
Net Change in Capital Surplus (72)(a) 12
Restricted Stock Granted, Net of Amortization 7 (9)
Net Change in Treasury Stock 99 (a) (349)
Net Change in the Fair Value of Available-for-Sale Securities, Net of Taxes 135 (653)
Accumulated Translation Adjustment 10 --
----------- -----------
Net Change in Stockholders' Equity 1,200 (452)
----------- -----------
BALANCE AT DECEMBER 31, $ 11,912 $ 10,712
=========== ===========
(a) During the second quarter of 1995, the Corporation called all of the
outstanding shares of its 10% convertible preferred stock for redemption.
Substantially all of the 10% convertible preferred stock was converted to
common stock. The common stock from the conversion was issued from treasury.
16
UNAUDITED
CHEMICAL BANKING CORPORATION and Subsidiaries
LOAN PORTFOLIO AND ALLOWANCE RELATED INFORMATION
(in millions, except ratios)
Loans Outstanding Nonperforming Assets
------------------------------------------------------------------
December 31, December 31,
1995 1994 1995 1994
DOMESTIC COMMERCIAL: -------------- ----------- ----------- ----------
Commercial Real Estate $ 4,850 $ 5,650 $ 176 $ 156
Other Commercial 26,574 24,723 322 358
------------ ------------ ----------- -------------
Total Commercial Loans 31,424 30,373 498 514
------------ ------------ ----------- -------------
DOMESTIC CONSUMER:
Residential Mortgage 17,746 13,560 123 92
Credit Card 8,678 9,261 -- --
Other Consumer 7,009 7,265 5 12
------------ ------------ ----------- -------------
Total Consumer Loans 33,433 30,086 128 104
------------ ------------ ----------- -------------
Total Domestic Loans 64,857 60,459 626 618
Foreign 17,286 18,308 230 311
------------ ------------ ----------- -------------
Total Loans $ 82,143 $ 78,767 856 929
============ ============
Assets Acquired as Loan Satisfactions 50 210
------------ ----------
Total Nonperforming Assets $ 906 $ 1,139
============= ==========
ASSETS HELD FOR ACCELERATED DISPOSITION $ 412 (a) $ 526
============= ==========
(a) During the 1995 fourth quarter, the Corporation transferred $421 million
of residential mortgage loans into the accelerated disposition portfolio.
Three Months Ended For The Year Ended
December 31, December 31,
---------------------------- ----------------------------
1995 1994 1995 1994
-------- ---------- ---------- ----------
ALLOWANCE FOR CREDIT LOSSES:
Balance at Beginning of Period $ 2,405 $ 2,650 $ 2,480 $ 3,020
Provision for Losses 116 85 478 550
Net Charge-Offs:
Domestic Commercial:
Commercial Real Estate (14) (22) (53) (165)
Other Commercial 12 16 (21) (80)
-------- ----------- ----------- -----------
Total Commercial (2) (6) (74) (245)
-------- ----------- ----------- -----------
Domestic Consumer:
Residential Mortgage (7) (23) (52) (47)
Credit Card (104) (82) (411) (329)
Other Consumer (7) (6) (31) (19)
---------- -------- ---------- ----------
Total Consumer (118) (111) (494) (395)
--------- -------- ---------- ----------
Total Domestic Net Charge-offs (120) (117) (568) (640)
Foreign 4 7 15 (307)
---------- -------- ---------- ----------
Total Net Charge-offs (116) (110) (553) (947)
Charge for Assets Held for Accelerated Disposition -- (148) -- (148)
Other, including portion related to sale of certain
New Jersey operations (26) 3 (26) 5
---------- ----------- ----------- ----------
Total Allowance for Credit Losses $ 2,379 $ 2,480 $ 2,379 $ 2,480
========== =========== =========== ==========
ALLOWANCE COVERAGE RATIOS:
Allowance for Credit Losses to:
Loans at Period-End 2.90% 3.15%
Average Loans 2.91% 3.30%
Nonperforming Loans 277.92% 266.95%
17
UNAUDITED
CHEMICAL BANKING CORPORATION and Subsidiaries
Condensed Average Consolidated Balance Sheet, Interest and Rates
(Taxable-Equivalent Interest and Rates; in millions)
Three Months Ended Three Months Ended
December 31, 1995 December 31, 1994
------------------------------------------ ----------------------------------------
Average Rate Average Rate
Balance Interest (Annualized) Balance Interest (Annualized)
--------- -------- ------------- --------- -------- ------------
ASSETS
Liquid Interest-Earning Assets $ 32,362 $ 494 6.06% $ 28,774 $ 446 6.15%
Securities 34,240 611 7.10% 26,120 448 6.81%
Loans 81,661 1,752 8.54% 76,894 1,579 8.16%
--------- -------- -------- --------
Total Interest-Earning Assets 148,263 2,857 7.67% 131,788 2,473 7.47%
Noninterest-Earning Assets 37,028 37,647
-------- --------
Total Assets $ 185,291 $169,435
========= ========
LIABILITIES
Interest-Bearing Deposits $ 77,009 932 4.83% $ 74,042 718 3.87%
Short-Term and Other Borrowings 42,180 612 5.77% 32,017 444 5.50%
Long-Term Debt 7,639 134 6.97% 8,262 135 6.49%
--------- -------- -------- --------
Total Interest-Bearing Liabilities 126,828 1,678 5.27% 114,321 1,297 4.52%
-------- --------
Noninterest-Bearing Liabilities 46,744 44,260
--------- --------
Total Liabilities 173,572 158,581
--------- --------
STOCKHOLDERS' EQUITY
Preferred Stock 1,250 1,450
Common Stockholders' Equity 10,469 9,404
--------- --------
Total Stockholders' Equity 11,719 10,854
--------- --------
Total Liabilities
and Stockholders' Equity $ 185,291 $169,435
========= ========
INTEREST RATE SPREAD 2.40% 2.95%
===== =====
NET INTEREST INCOME AND NET YIELD
ON INTEREST-EARNING ASSETS $ 1,179 3.16% $ 1,176 3.55%
======== ===== ======== =====
For The Year Ended For The Year Ended
December 31, 1995 December 31, 1994
--------------------------------------- ---------------------------------------
Average Average
Balance Interest Rate Balance Interest Rate
-------- -------- ---- -------- -------- -----
ASSETS
Liquid Interest-Earning Assets $ 30,088 $ 1,932 6.42% $ 28,604 $ 1,643 5.74%
Securities 29,878 2,174 7.28% 26,207 1,724 6.58%
Loans 81,649 7,038 8.62% 75,234 5,745 7.64%
-------- --------- --------- ---------
Total Interest-Earning Assets 141,615 11,144 7.87% 130,045 9,112 7.01%
Noninterest-Earning Assets 39,082 36,634
-------- --------
Total Assets $180,697 $166,679
======== ========
LIABILITIES
Interest-Bearing Deposits $ 76,115 3,657 4.80% $ 73,040 2,378 3.26%
Short-Term and Other Borrowings 37,946 2,226 5.87% 30,689 1,500 4.89%
Long-Term Debt 7,635 546 7.16% 8,419 536 6.37%
-------- --------- -------- --------
Total Interest-Bearing Liabilities 121,696 6,429 5.28% 112,148 4,414 3.94%
Noninterest-Bearing Liabilities 47,718 -------- 43,569 ------
-------- --------
Total Liabilities 169,414 155,717
-------- --------
STOCKHOLDERS' EQUITY
Preferred Stock 1,330 1,579
Common Stockholders' Equity 9,953 9,383
-------- --------
Total Stockholders' Equity 11,283 10,962
-------- --------
Total Liabilities and
Stockholders' Equity $180,697 $166,679
======== ========
INTEREST RATE SPREAD 2.59% 3.07%
====== =====
NET INTEREST INCOME AND NET YIELD
ON INTEREST-EARNING ASSETS $ 4,715 3.33% $ 4,698 3.61%
========= ====== ======== =====
18
COMBINED FINANCIAL DATA
CHEMICAL BANKING CORPORATION
AND THE CHASE MANHATTAN CORPORATION
UNAUDITED PROFORMA COMBINED FINANCIAL DATA
(In millions, except per share data)
The following Unaudited Pro Forma Combined Financial Data combines the
historical financial data of Chemical and Chase giving effect to the Merger,
which will be accounted for as a pooling of interests, as if the Merger had
occurred on the dates indicated herein, after giving effect to certain pro
forma adjustments.
The effect of the estimated $1.5 billion restructuring charge ($925 million
after-tax) expected to be taken in connection with the Merger has not been
reflected in the pro forma combined balance sheet and income statement.
Additionally, the pro forma financial data does not give effect to the
anticipated cost savings in connection with the Merger. The pro forma financial
data is not necessaily indicative of the results that actually would have
occurred had the Merger been consummated on the dates indicated or that may be
obtained in the future.
19
UNAUDITED
THE NEW CHASE MANHATTAN CORPORATION and Subsidiaries
(in millions, except per share and ratio data)
PRO FORMA
Three Months Ended For The Year Ended
December 31, December 31,
-------------------------------- --------------------------------
Pro- Pro-
Forma(a) Forma(a)
1995 1994 1994 1995 1994 1994
------ ------ -------- ------ ------- -------
EARNINGS:
- --------
Income Before Effect of Accounting Change $ 827 $ 403 $ 582 $ 2,970 $ 2,486 $ 2,665
Effect of Change in Accounting Principle -- -- -- (11)(b) -- --
------- ------ -------- -------- -------- --------
Net Income $ 827 $ 403 $ 582 $ 2,959 $ 2,486 $ 2,665
======= ===== ======== ======= ======= ========
Net Income Applicable to Common Stock $ 773 $ 342 $ 521 $ 2,732 $ 2,221 $ 2,400
======= ====== ======== ======== ======= ========
INCOME PER COMMON SHARE:
- -----------------------
Primary:
Income Before Effect of Accounting Change $ 1.73 $ 0.79 $ 1.20 $ 6.23 $ 5.02 $ 5.43
Effect of Change in Accounting Principle -- -- -- (0.03)(b) -- --
-------- ------ -------- --------- ------- --------
Net Income $ 1.73 $ 0.79 $ 1.20 $ 6.20 $ 5.02 $ 5.43
======== ====== ======== ======= ======= ========
Assuming Full Dilution:
Income Before Effect of Accounting Change $ 1.73 $ 0.79 $ 1.19 $ 6.07 $ 4.97 $ 5.37
Effect of Change in Accounting Principle -- -- -- (0.03)(b) -- --
-------- ------ -------- --------- ------- --------
Net Income $ 1.73 $ 0.79 $ 1.19 $ 6.04 $ 4.97 $ 5.37
======== ====== ======== ======== ======= ========
Book Value at December 31, $ 41.81 $37.37 $ 41.81 $ 37.37
COMMON SHARES OUTSTANDING:
- -------------------------
Average Common and Common Equivalent Shares 446.0 433.3 440.8 442.2
Average Common Shares Assuming Full Dilution 447.7 441.7 453.5 450.9
Common Shares at Period End 435.0 428.8 435.0 428.8
BALANCE SHEET AVERAGES:
- ----------------------
Loans $ 148,217 $138,560 $146,528 $136,713
Total Interest-Earning Assets $ 253,660 $231,564 $244,507 $227,270
Total Assets $ 314,757 $291,952 $307,385 $287,073
Deposits $ 170,650 $166,958 $168,312 $166,702
Common Stockholders' Equity $ 17,695 $ 16,141 $ 16,913 $ 16,022
Total Stockholders' Equity $ 20,345 $ 18,991 $ 19,643 $ 19,042
PERFORMANCE RATIOS:(Average Balances)(c)
- ------------------
Return on Assets 1.04% 0.55% 0.79% 0.96% 0.87% 0.93%
Return on Common Stockholders' Equity 17.33% 8.41% 12.81% 16.15% 13.86% 14.98%
Return on Total Stockholders' Equity 16.13% 8.42% 12.16% 15.06% 13.06% 14.00%
Net Yield on Total Interest-Earning Assets 3.30% 3.58% 3.40% 3.70%
CAPITAL RATIOS AT DECEMBER 31:
- -----------------------------
Common Stockholders' Equity to Assets 6.0% 5.6%
Total Stockholders' Equity to Assets 6.9% 6.6%
Tier 1 Leverage (d) 6.7% 6.6%
Risk-Based Capital: (d)
Tier 1 (4.0% required) 8.2%* 8.1%
Total (8.0% required) 12.3%* 12.2%
(a) The pro-forma columns exclude the impact of the $260 million restructuring
charge ($152 million after-tax) recorded by Chemical and $157 million in
restructuring charges ($97 million after-tax) recorded by Chase in the
fourth quarter of 1994. The pro-forma columns also exclude the impact
of deferred Federal tax benefits of $70 million recognized by Chase in
the 1994 fourth quarter.
(b) On January 1, 1995, the Corporation adopted SFAS 106 for the accounting
for other postretirement benefits relating to the Corporation's foreign
plans.
(c) Performance ratios for three months ended December 31, 1995 and 1994
are based on annualized amounts.
(d) For all periods presented, risk-based capital and leverage ratios exclude
the assets and off-balance sheet financial instruments of each of Chemical
and Chase's U.S. underwriting and dealing subsidiaries as well as their
respective investment in such subsidiaries. These ratios also exclude
the net unfavorable impact on stockholders' equity resulting from the
adoption of SFAS 115.
* Estimated
20
UNAUDITED
THE NEW CHASE MANHATTAN CORPORATION and Subsidiaries
PRO FORMA CONSOLIDATED STATEMENT OF INCOME
(in millions, except per share data)
Three Months Ended
----------------------------------------
Dec. 31, Sept. 30, Dec. 31,
1995 1995 1994
-------- --------- --------
INTEREST INCOME
Loans $ 3,271 $ 3,296 $ 2,927
Securities 718 639 558
Trading Assets 369 331 297
Federal Funds Sold and Securities Purchased Under Resale Agreements 491 448 407
Deposits with Banks 187 194 224
-------- -------- --------
Total Interest Income 5,036 4,908 4,413
-------- -------- --------
INTEREST EXPENSE
Deposits 1,602 1,593 1,327
Short-Term and Other Borrowings 1,106 991 795
Long-Term Debt 231 239 218
-------- ------- -------
Total Interest Expense 2,939 2,823 2,340
-------- ------ -------
NET INTEREST INCOME 2,097 2,085 2,073
Provision for Losses 186 192 175
-------- -------- -------
NET INTEREST INCOME AFTER PROVISION FOR LOSSES 1,911 1,893 1,898
-------- -------- -------
NONINTEREST REVENUE
Trust and Investment Management Fees 261 243 243
Corporate Finance and Syndication Fees 228 219 204
Service Charges on Deposit Accounts 101 105 106
Fees for Other Financial Services 591 563 543
Trading Revenue 281 349 77
Securities Gains 25 53 (2)
Other Revenue 259 162 316
-------- -------- ---------
Total Noninterest Revenue 1,746 1,694 1,487
-------- -------- ---------
NONINTEREST EXPENSE
Salaries 1,130 1,074 1,046
Employee Benefits 219 228 241
Occupancy Expense 224 227 241
Equipment Expense 187 177 203
Foreclosed Property Expense (15) (7) (25)
Other Expense 619 633 752
------- -------- ---------
Total Noninterest Expense Before Restructuring Charge 2,364 2,332 2,458
Restructuring Charge -- -- 417
------- -------- ---------
Total Noninterest Expense 2,364 2,332 2,875
-------- -------- ---------
INCOME BEFORE INCOME TAX EXPENSE 1,293 1,255 510
Income Tax Expense 466 491 107
-------- -------- ---------
NET INCOME $ 827 $ 764 $ 403
======== ======== =========
NET INCOME APPLICABLE TO COMMON STOCK $ 773 $ 708 $ 342
======== ======== =========
INCOME PER COMMON SHARE:
Primary $ 1.73 $ 1.58 $ 0.79
======== ======== =========
Assuming Full Dilution $ 1.73 $ 1.55 $ 0.79
======== ======== =========
21
UNAUDITED
THE NEW CHASE MANHATTAN CORPORATION and Subsidiaries
PRO FORMA CONSOLIDATED STATEMENT OF INCOME
(in millions, except per share data)
For The Year Ended
December 31,
---------------------------
1995 1994
----------- -----------
INTEREST INCOME
Loans $ 12,907 $ 11,055
Securities 2,591 2,329
Trading Assets 1,316 1,142
Federal Funds Sold and Securities Purchased Under Resale Agreements 1,889 1,827
Deposits with Banks 824 869
---------- ---------
Total Interest Income 19,527 17,222
---------- ---------
INTEREST EXPENSE
Deposits 6,291 4,704
Short-Term and Other Borrowings 4,027 3,307
Long-Term Debt 942 848
---------- ---------
Total Interest Expense 11,260 8,859
---------- ---------
NET INTEREST INCOME 8,267 8,363
Provision for Losses 758 1,050
---------- ---------
NET INTEREST INCOME AFTER PROVISION FOR LOSSES 7,509 7,313
---------- ---------
NONINTEREST REVENUE
Trust and Investment Management Fees 954 988
Corporate Finance and Syndication Fees 840 638
Service Charges on Deposit Accounts 417 408
Fees for Other Financial Services 2,222 2,116
Trading Revenue 1,036 1,196
Securities Gains 132 65
Other Revenue 1,092 1,239
---------- ---------
Total Noninterest Revenue 6,693 6,650
---------- ---------
NONINTEREST EXPENSE
Salaries 4,208 3,978
Employee Benefits 955 929
Occupancy Expense 897 968
Equipment Expense 755 724
Foreclosed Property Expense (75) 50
Other Expense 2,635 2,888
---------- ---------
Total Noninterest Expense Before Restructuring Charge 9,375 9,537
Restructuring Charge 15 465
---------- ---------
Total Noninterest Expense 9,390 10,002
---------- ---------
INCOME BEFORE INCOME TAX EXPENSE AND EFFECT
OF ACCOUNTING CHANGE 4,812 3,961
Income Tax Expense 1,842 1,475
---------- ---------
INCOME BEFORE EFFECT OF ACCOUNTING CHANGE 2,970 2,486
Effect of Change in Accounting Principle (11) --
---------- ---------
NET INCOME $ 2,959 $ 2,486
========== =========
NET INCOME APPLICABLE TO COMMON STOCK $ 2,732 $ 2,221
========== =========
INCOME PER COMMON SHARE:
Primary:
Income Before Effect of Accounting Change $ 6.23 $ 5.02
Effect of Change in Accounting Principle (0.03) --
---------- ---------
Net Income $ 6.20 $ 5.02
========== =========
Assuming Full Dilution:
Income Before Effect of Accounting Change $ 6.07 $ 4.97
Effect of Change in Accounting Principle (0.03) --
---------- ---------
Net Income $ 6.04 $ 4.97
=========== =========
22
UNAUDITED
THE NEW CHASE MANHATTAN CORPORATION and Subsidiaries
PRO FORMA CONSOLIDATED BALANCE SHEET
(in millions)
December 31, December 31,
1995 1994
------------ ------------
ASSETS
Cash and Due from Banks $ 14,794 $ 13,545
Deposits with Banks 8,468 12,440
Federal Funds Sold and Securities
Purchased Under Resale Agreements 17,461 20,077
Trading Assets:
Debt and Equity Instruments 26,212 17,926
Risk Management Instruments 25,825 25,985
Securities:
Held-to-Maturity 4,628 10,650
Available-for-Sale 37,141 23,140
Loans (Net of Unearned Income) 150,207 142,231
Allowance for Credit Losses (3,784) (3,894)
Premises and Equipment 3,757 3,951
Due from Customers on Acceptances 1,896 1,608
Accrued Interest Receivable 2,541 2,466
Assets Acquired as Loan Satisfactions 171 537
Assets Held for Accelerated Disposition 412 526
Other Assets 14,260 14,195
----------- ----------
TOTAL ASSETS $ 303,989 $ 285,383
=========== ==========
LIABILITIES
Deposits:
Domestic Noninterest Bearing $ 35,414 $ 33,389
Domestic Interest Bearing 64,640 68,063
Foreign 71,480 65,010
----------- ----------
Total Deposits 171,534 166,462
Federal Funds Purchased and Securities
Sold Under Repurchase Agreements 37,263 32,410
Other Borrowed Funds 13,936 11,780
Acceptances Outstanding 1,915 1,629
Trading Liabilities 34,341 30,356
Accounts Payable, Accrued Expenses and Other Liabilities 11,339 10,812
Long-Term Debt 12,825 13,061
----------- ----------
TOTAL LIABILITIES 283,153 266,510
----------- ----------
STOCKHOLDERS' EQUITY
Preferred Stock 2,650 2,850
Common Stock 439 438
Capital Surplus 10,625 10,474
Retained Earnings 7,621 5,945
Net Unrealized Loss on Securities Available-for-Sale, Net of Taxes (237) (473)
Treasury Stock, at Cost (262) (361)
----------- ----------
TOTAL STOCKHOLDERS' EQUITY 20,836 18,873
----------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 303,989 $ 285,383
=========== ==========
23
UNAUDITED
PRO FORMA
THE NEW CHASE MANHATTAN CORPORATION and Subsidiaries
LOAN PORTFOLIO AND ALLOWANCE RELATED INFORMATION
(in millions, except ratios)
Loans Outstanding Nonperforming Assets
--------------------------- ------------------------
December 31, December 31,
1995 1994 1995 1994
-------- -------- ---------- ---------
Domestic Commercial:
Commercial Real Estate $ 6,588 $ 7,705 $ 375 $ 422
Other Commercial 40,500 36,810 498 474
-------- -------- -------- ---------
Total Commercial Loans 47,088 44,515 873 896
-------- -------- -------- ---------
Total Domestic Consumer 66,993 62,549 277 232
-------- -------- -------- ---------
Total Domestic Loans 114,081 107,064 1,150 1,128
Foreign 36,126 35,167 343 461
-------- -------- -------- ---------
Total Loans $150,207 $142,231 1,493 1,589
======== ========
Assets Acquired as Loan Satisfactions 171 537
-------- ---------
Total Nonperforming Assets $ 1,664 $ 2,126
======== =========
ASSETS HELD FOR ACCELERATED DISPOSITION $ 412 $ 526
======== =========
Three Months Ended For The Year Ended
December 31, December 31,
------------------------- -----------------------------
1995 1994 1995 1994
-------- -------- ----------- -----------
ALLOWANCE FOR CREDIT LOSSES:
Balance at Beginning of Period $ 3,809 $ 4,066 $ 3,894 $ 4,445
Provision for Losses 186 175 758 1,050
Net Charge-Offs:
Domestic Commercial:
Commercial Real Estate (9) (24) (31) (290)
Other Commercial 31 19 16 (96)
-------- --------- ---------- -----------
Total Commercial 22 (5) (15) (386)
-------- --------- ----------- -----------
Domestic Consumer:
Residential Mortgage (11) (29) (62) (60)
Credit Card (192) (168) (755) (672)
Other Consumer (11) (10) (42) (36)
--------- --------- ----------- -----------
Total Consumer (214) (207) (859) (768)
--------- --------- ----------- -----------
Total Domestic Net Charge-offs (192) (212) (874) (1,154)
Foreign 6 7 34 (310)
--------- --------- ----------- -----------
Total Net Charge-offs (186) (205) (840) (1,464)
Charge for Assets Held for
Accelerated Disposition -- (148) -- (148)
Other (25) 6 (28) 11
---------- ---------- ----------- -----------
Total Allowance for Credit Losses $ 3,784 $ 3,894 $ 3,784 $ 3,894
========== ========== =========== ===========
ALLOWANCE COVERAGE RATIOS:
Allowance for Credit Losses to:
Loans at Period-End 2.52% 2.74%
Average Loans 2.58% 2.85%
Nonperforming Loans 253.45% 245.06%
