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: July 21, 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 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 July 19, 1994, that 1994 second quarter net income was $357 million, or $1.28 per common share, up nine percent from earnings on a comparable basis of $327 million, or $1.14 per share, in the second quarter of 1993. Reported net income in last year's second quarter was $381 million, or $1.35 per common share, when the Corporation recognized income tax benefits of $54 million. For the first six months of 1994, net income was $676 million, an increase of 12 percent from $603 million on a comparable basis in the first half of 1993. Reported net income for the first six months of 1993 was $755 million, when the Corporation benefited from $152 million in accounting changes and tax benefits. A copy of the Corporation's Press Release announcing the results of operations for the 1994 second 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 Second 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 July 21, 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
1 Press Contact: Ken Herz (212) 270-4621 John Stefans (212) 270-7438 Investor Contact: John Borden (212) 270-7318 For Immediate Release Tuesday, July 19, 1994 NEW YORK, July 19 -- Chemical Banking Corporation today reported second quarter net income of $357 million, or $1.28 per common share, up nine percent from earnings on a comparable basis of $327 million, or $1.14 per share, in the second quarter of 1993. Reported net income in last year's second quarter was $381 million, or $1.35 per share, when Chemical recognized income tax benefits of $54 million. For the first six months of 1994, net income was $676 million, an increase of 12 percent from $603 million on a comparable basis in the first half of 1993. Reported net income for the first six months of 1993 was $755 million, when the corporation benefited from $152 million in accounting changes and tax benefits. "Chemical's core businesses performed well in the second quarter's challenging environment. Our earnings also benefited from a further improvement in the institution's risk profile, including a substantial reduction in nonperforming assets and another sharp decline in our provision and other credit costs," said Walter V. Shipley, chairman and chief executive officer. "We remain firmly on the path to improved operating return levels, and revenue initiatives and productivity programs under way throughout the corporation will contribute to ongoing improvements," Mr. Shipley said. Completion of a Brazilian refinancing package during the second quarter brought to a close the broad rescheduling program begun in the mid-1980s. Accordingly, Chemical has combined its remaining LDC reserve for possible loan losses with its general reserve and will no longer report a separate LDC allowance. 2 At June 30, total nonperforming assets were $2,493 million, down $710 million, or 22 percent, from $3,203 million on March 31 and down $2,370 million, or 49 percent, from June 30 a year ago. On July 1, Chemical completed its tender offer for all of the outstanding common stock and the depositary shares representing the preferred stock of Margaretten Financial Corporation, a leading mortgage banking company. With this acquisition, Chemical now ranks fourth nationwide in mortgage originations and fifth in mortgage servicing. This acquisition is not reflected in second quarter results. The corporation's estimated Tier I risk-based capital ratio was 8.4 percent at June 30, compared with 7.6 percent a year ago. At June 30, the estimated total risk-based capital ratio was 12.4 percent, compared with 12.0 percent a year ago. NET INTEREST INCOME Net interest income for the second quarter was $1,185 million, compared with $1,175 million in the same year-ago period. The rise in net interest income is attributable to increases in average earning assets, partially offset by a decline in average spread. Average interest-earning assets for the second quarter were $129.1 billion, compared with $125.6 billion in the same year-ago period. The composition of average earning assets shifted in response to growth in liquid assets to support trading businesses and securities, more than offsetting declines in loans. The net yield on interest-earning assets was 3.69 percent in the second quarter, compared with 3.76 percent in the second quarter of 1993. The shift to lower-spread liquid assets has exerted downward pressure on the net yield on interest earning assets. Compared with the first quarter of 1994, net interest income and the net yield on earning assets improved. Growth in consumer loans and declines in nonperforming loans contributed to a rise in the average yield on the loan portfolio. NONINTEREST REVENUE Noninterest revenue for the second quarter was $867 million, compared with $1,042 million in the same period a year ago, which had included $44 million from the sale of interest due and unpaid (IDU) bonds, as well as significantly higher trading revenues. There were no LDC-related past due interest bond sales in the second quarter of 1994. Trust and investment management fees were $108 million in the second quarter of 1994, compared with $102 million in the year-ago quarter, reflecting the acquisition of Ameritrust Texas Corporation in September 1993. 3 Corporate finance fees were $93 million in the quarter, up 11 percent from $84 million a year ago. Fees for other banking services were $279 million in the quarter, compared with $272 million in the year-ago second quarter. This improvement primarily reflected increased revenues generated by the new co-branded Shell MasterCard Combined revenues from all trading activities were $203 million in the second quarter, versus a record $298 million in the same year-ago period but up from $185 million in the first quarter of 1994. The decline in trading results in the second quarter when compared with record results in last year's second quarter reflected difficult conditions in certain markets, including emerging market debt and European government bonds, as well as in many foreign exchange markets. A decline in other noninterest revenue in the second quarter reflected lower revenues on equity-related investments. The 1994 second quarter result was $66 million, compared with $115 million a year ago. NONINTEREST EXPENSE Noninterest expense in the second quarter was $1,281 million, compared with $1,312 million in the same year-ago quarter. Expenses for the second quarter of 1994 reflected additional costs of $47 million associated with the acquisition of Ameritrust and operating costs connected with the Shell MasterCard, including marketing expenses that increased $21 million, largely reflecting the advertising campaign for the co-branded program. Foreclosed property expense was $2 million in the quarter compared with $85 million in the year-ago period, reflecting significant progress in managing the corporation's foreclosed real estate portfolio. The current quarter's expense benefited by approximately $15 million of gains from the sale of foreclosed property. Total headcount at June 30, 1994 was 40,988, compared with 41,303 at June 30, 1993, as staff increases in areas with revenue growth initiatives were more than offset by reductions from continued integration and productivity efforts. 4 PROVISION AND ALLOWANCE FOR LOSSES The provision for losses was $160 million in the second quarter, compared with $205 million in the first quarter of 1994 and $363 million in the second quarter of 1993. Non-LDC net charge-offs were $185 million in the second quarter, compared with $230 million in the first quarter of 1994 and $363 million in the second quarter a year ago. Following completion of the Brazilian refinancing package, a final valuation of the LDC portfolio resulted in a $291 million charge in the second quarter. The remaining LDC reserve of $300 million, after the final valuation, was transferred to the general reserve. At June 30, the allowance for losses was $2,676 million, compared with $2,991 million on the same date a year ago (including $570 million related to the LDC allowance). NONPERFORMING ASSETS At June 30, total nonperforming assets were $2,493 million, down $710 million, or 22 percent, from March 31 and down $2,370 million, or 49 percent, from June 30, 1993. Nonperforming loans at June 30 were $1,758 million, down from $2,369 million at March 31 and down from $3,764 million at June 30 last year. Assets acquired as loan satisfactions were $735 million at June 30, down from $834 million at March 31 and down $364 million from $1,099 million on June 30 a year ago. The nonperforming amounts include LDCs of $145 million at June 30, down from $524 million at March 31, principally the result of the completion of the Brazilian refinancing program. New bonds received in exchange for old debt and approximately $160 million face value of interest bonds, representing the majority of the remaining unpaid interest, have been designated as "Available for Sale." 5 NONPERFORMING ASSETS ($ in millions) 6/30/94 3/31/94 6/30/93 ------- ------- ------- Nonperforming loans* $1,758 $2,369 $3,764 Assets acquired as loan satisfactions 735 834 1,099 ------ ------ ------ Total nonperforming assets $2,493 $3,203 $4,863 ====== ====== ====== ALLOWANCE FOR LOSSES ($ in millions) 6/30/94 6/30/93 ------- ------- Total allowance for losses $2,676 $2,991** As a % of total loans 3.6% 3.8% As a % of nonperforming loans 152% 79% * Includes loans previously classified as LDC loans. ** The 6/30/93 amount includes $570 million previously classified as LDC allowance. STOCKHOLDERS' EQUITY AND CAPITAL RATIOS ($ in billions) 6/30/94 6/30/93 ------- ------- Total stockholders' equity $11.2 $10.5 Common stockholders' equity $9.3 $8.7 Ratios: Total equity to assets 6.6% 7.2% Common equity to assets 5.5% 6.0% Tier I Leverage 6.4% 6.6% Risk-based capital: Tier I (4.0% required) 8.4% 7.6% Total (8.0% required) 12.4% 12.0% 6 [FN] On January 1, 1994, the corporation adopted FASI 39, which increased total assets by approximately $19.0 billion at June 30, 1994 and total average assets by approximately $14.1 billion for the 1994 second quarter and $13.6 billion for the first six months of 1994. The 1994 ratios exclude the net unfavorable impact on stockholders' equity of $291 million resulting from marking the available for sale portfolio to market. [C] Estimated. OTHER FINANCIAL DATA In the second quarter of 1994, the corporation announced its intention to repurchase up to 10 million shares of its common stock on the open market from time to time during the next 12 months. As of June 30, 1994, the corporation had repurchased approximately 3.2 million shares of its common stock. The corporation also redeemed all shares of its adjustable rate Series C Preferred Stock on July 15, 1994 and issued $200 million of Series L Adjustable Rate Cumulative Preferred Stock on June 8, 1994. The corporation's effective tax rate was 41.5 percent in the second quarter, compared with 29.7 percent in the same period of 1993. Tax expense included an income tax benefit of $54 million in the second quarter of 1993. The impact of marking the "Available for Sale" securities to market resulted in a net unfavorable impact of approximately $291 million after-tax on the corporation's stockholders' equity at June 30, 1994, compared with an unfavorable impact of $192 million after- tax at March 31, 1994. The market valuation does not include the favorable impact of related funding sources. On January 1, 1994, the corporation adopted FASB Interpretation No. 39, which changes the reporting of unrealized gains and losses on interest rate and foreign exchange contracts on the balance sheet. The adoption of this Interpretation has resulted in an increase of assets and liabilities of $19.0 billion at June 30, 1994, with unrealized gains reported as Trading Assets-Risk Management Instruments and the unrealized losses reported in Other Liabilities. Total assets at June 30 were $168.9 billion, versus $145.5 billion on the same date a year ago. Total loans at June 30 were $74.7 billion, compared with $79.2 billion a year ago. At the end of the second quarter, total deposits were $92.0 billion, compared with $94.6 billion at June 30, 1993. The return on average total assets was .87 percent for the second quarter, compared with 1.04 percent in the same year-ago period. 7 The return on average common stockholders' equity was 13.90 percent for the second quarter, compared with 15.97 percent in the year-ago second quarter. Book value per common share was $37.17 at June 30, versus $34.47 per share on the same date a year ago. TEXAS COMMERCE BANCSHARES Texas Commerce Bancshares (TCB) reported net income of $60 million in the second quarter, versus $44 million a year ago. Its net yield on interest-earning assets was 4.21 percent in the second quarter, versus 4.02 percent in the 1993 second quarter. At June 30, total assets of TCB were $20.9 billion, versus $22.1 billion a year ago. 8 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 columns assume the Corporation's 1993 second quarter and six month results are reported on a fully-taxed basis. 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 $19.0 billion at June 30, 1994 and total average assets by approximately $14.1 billion for the 1994 second quarter and $13.6 billion for the first half of 1994. Performance ratios are based on annualized net income amounts. The 1994 amounts exclude the net unfavorable impact on stockholders' equity of $291 million resulting from the adoption of SFAS No. 115. *Estimated 9 CHEMICAL BANKING CORPORATION and Subsidiaries CONSOLIDATED STATEMENT OF INCOME (in millions, except per share data) Three Months Ended June 30, ------------------ 1994 1993 ----- ----- INTEREST INCOME Loans $1,375 $1,433 Securities 432 443 Trading Assets 191 103 Federal Funds Sold and Securities Purchased Under Resale Agreements 121 80 Deposits with Banks 100 73 ------ ------ Total Interest Income 2,219 2,132 ------ ------ INTEREST EXPENSE Deposits 543 569 Short-Term and Other Borrowings 359 253 Long-Term Debt 132 135 ------ ------ Total Interest Expense 1,034 957 ------ ------ NET INTEREST INCOME 1,185 1,175 Provision for Losses 160 363 ------ ------ NET INTEREST INCOME AFTER PROVISION FOR LOSSES 1,025 812 ------ ------ NONINTEREST REVENUE Trust and Investment Management Fees 108 102 Corporate Finance and Syndication Fees 93 84 Service Charges on Deposit Accounts 75 77 Fees for Other Banking Services 279 272 Trading Account and Foreign Exchange Revenue 203 298 Securities Gains 13 5 Other Revenue 96 204 ------ ------ Total Noninterest Revenue 867 1,042 ------ ------ NONINTEREST EXPENSE Salaries 542 529 Employee Benefits 102 105 Occupancy Expense 140 145 Equipment Expense 91 88 Foreclosed Property Expense 2 85 Other Expense 404 360 ------ ------ Total Noninterest Expense 1,281 1,312 ------ ------ INCOME BEFORE INCOME TAX EXPENSE 611 542 Income Tax Expense 254 161 ------ ------ NET INCOME $ 357 $ 381 ====== ====== NET INCOME APPLICABLE TO COMMON STOCK $ 324 $ 341 ====== ====== NET INCOME PER COMMON SHARE $ 1.28 $ 1.35 ====== ====== AVERAGE COMMON SHARES OUTSTANDING 253.1 251.7 10 CHEMICAL BANKING CORPORATION and Subsidiaries CONSOLIDATED STATEMENT OF INCOME (in millions, except per share data) Six Months Ended June 30, ----------------- 1994 1993 ------- ------- INTEREST INCOME Loans $2,682 $2,898 Securities 848 871 Trading Assets 364 197 Federal Funds Sold and Securities Purchased Under Resale Agreements 221 156 Deposits with Banks 194 134 ------ ------ Total Interest Income 4,309 4,256 ------ ------ INTEREST EXPENSE Deposits 1,063 1,162 Short-Term and Other Borrowings 651 505 Long-Term Debt 267 265 ------ ------ Total Interest Expense 1,981 1,932 ------ ------ NET INTEREST INCOME 2,328 2,324 Provision for Losses 365 675 ------ ------ NET INTEREST INCOME AFTER PROVISION FOR LOSSES 1,963 1,649 ------ ------ NONINTEREST REVENUE Trust and Investment Management Fees 218 200 Corporate Finance and Syndication Fees 175 155 Service Charges on Deposit Accounts 144 144 Fees for Other Banking Services 569 523 Trading Account and Foreign Exchange Revenue 388 550 Securities Gains 59 75 Other Revenue 245 320 ------ ------ Total Noninterest Revenue 1,798 1,967 ------ ------ NONINTEREST EXPENSE Salaries 1,060 1,030 Employee Benefits 221 207 Occupancy Expense 286 290 Equipment Expense 175 163 Foreclosed Property Expense 37 156 Restructuring Charge 48 43 Other Expense 778 699 ------ ------ Total Noninterest Expense 2,605 2,588 ------ ------ INCOME BEFORE INCOME TAX EXPENSE AND EFFECT OF ACCOUNTING CHANGES 1,156 1,028 Income Tax Expense 480 308 ------ ------ INCOME BEFORE EFFECT OF ACCOUNTING CHANGES 676 720 Net Effect of Changes in Accounting Principles -- 35 ------ ------ NET INCOME $ 676 $ 755 ====== ====== NET INCOME APPLICABLE TO COMMON STOCK $ 611 $ 676 ====== ====== PER COMMON SHARE: Income Before Effect of Accounting Changes $ 2.41 $ 2.56 Net Effect of Changes in Accounting Principles -- .14 ------- ------ Net Income $ 2.41 $ 2.70 ======= ====== AVERAGE COMMON SHARES OUTSTANDING 253.1 250.1 [FN] 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. 11
CHEMICAL BANKING CORPORATION and Subsidiaries NONINTEREST REVENUE DETAIL (in millions) Three Months Ended Six Months Ended June 30, June 30, ------------------- -------------------- 1994 1993 1994 1993 -------- -------- -------- -------- TRUST AND INVESTMENT MANAGEMENT FEES: Personal Trust Fees $ 54 $ 46 $107 $ 97 Corporate and Institutional Trust Fees 45 46 91 85 Other, primarily Foreign Asset Management 9 10 20 18 ----- ----- ----- ----- Total $108 $102 $218 $200 ===== ===== ===== ===== FEES FOR OTHER BANKING SERVICES: Credit Card Services Revenue $ 75 $ 55 $150 $108 Fees in Lieu of Compensating Balances 49 52 107 104 Commissions on Letters of Credit and Acceptances 39 40 76 80 Loan Commitment Fees 23 25 45 46 Mortgage Servicing Fees 18 17 34 32 Other Fees 75 83 157 153 ----- ----- ----- ----- Total $279 $272 $569 $523 ===== ===== ===== ===== TRADING ACCOUNT AND FOREIGN EXCHANGE REVENUE: Interest Rate Contracts $135 $ 97 $223 $226 Foreign Exchange Revenue 55 96 100 164 Debt Instruments and Other 13 105 65 160 ----- ----- ----- ----- Total $203 $298 $388 $550 ===== ===== ===== ===== OTHER REVENUE: Revenue from Equity-Related Investments $ 66 $115 $149 $143 Net Gains on LDC-Related Interest Bond Sales -- 44 45 100 All Other Revenue 30 45 51 77 ----- ----- ----- ----- Total $ 96 $204 $245 $320 ===== ===== ===== =====
CHEMICAL BANKING CORPORATION and Subsidiaries NONINTEREST EXPENSE DETAIL (in millions) Three Months Ended Six Months Ended June 30, June 30, ------------------ -------------------- 1994 1993 1994 1993 -------- -------- -------- -------- OTHER EXPENSE: Professional Services $ 59 $ 55 $105 $ 97 Marketing Expense 57 36 97 68 FDIC Assessments 41 44 83 92 Telecommunications 33 28 63 54 Amortization of Intangibles 27 28 56 50 All Other 187 169 374 338 ---- ---- ---- ---- Total Other Expense $404 $360 $778 $699 ==== ==== ==== ==== 12 CHEMICAL BANKING CORPORATION and Subsidiaries CONSOLIDATED BALANCE SHEET (in millions) June 30, June 30, 1994 1993 --------- --------- ASSETS Cash and Due from Banks $ 9,463 $ 7,650 Deposits with Banks 4,461 3,763 Federal Funds Sold and Securities Purchased under Resale Agreements 12,803 9,664 Trading Assets: Debt and Equity Instruments 10,935 8,332 Risk Management Instruments 20,632 -- Securities: Held-to-Maturity 8,923 17,009 Available-for-Sale 16,606 6,834 Loans (Net of Unearned Income) 74,685 79,200 Allowance for Losses (2,676) (2,991) Premises and Equipment 2,034 1,796 Due from Customers on Acceptances 1,202 1,225 Accrued Interest Receivable 1,029 1,118 Assets Acquired as Loan Satisfactions 735 1,099 Other Assets 8,089 10,823 -------- -------- TOTAL ASSETS $168,921 $145,522 ======== ======== LIABILITIES Deposits: Demand (Noninterest Bearing) $ 22,066 $ 22,163 Time and Savings 47,737 52,342 Foreign 22,153 20,087 -------- -------- Total Deposits 91,956 94,592 Federal Funds Purchased and Securities Sold Under Repurchase Agreements 20,764 14,634 Other Borrowed Funds 12,604 10,786 Acceptances Outstanding 1,205 1,240 Accounts Payable and Accrued Liabilities 1,998 3,085 Other Liabilities 20,878 2,215 Long-Term Debt 8,336 8,437 -------- -------- TOTAL LIABILITIES 157,741 134,989 ======== ======== STOCKHOLDERS' EQUITY Preferred Stock 1,854 1,854 Common Stock 254 252 Capital Surplus 6,557 6,534 Retained Earnings 2,920 1,905 Net Unrealized Loss on Securities Available-for-Sale, Net of Taxes (291) -- Treasury Stock, at Cost (114) (12) --------- --------- TOTAL STOCKHOLDERS' EQUITY 11,180 10,533 --------- --------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $168,921 $145,522 ========= ========= [FN] On January 1, 1994, the Corporation adopted FASB Interpretation No. 39. As a result, assets and liabilities increased by $19.0 billion at June 30, 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. 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. 13 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 676 755 Dividends Declared: Preferred Stock (65) (78) Common Stock (192) (166) Issuance of Preferred Stock 200 400 Redemption of Preferred Stock -- (394) Issuance of Common Stock 16 163 Restricted Stock Granted (11) -- Net Changes in Treasury Stock (102) -- Net Unrealized Loss on Securities Available-for-Sale, Net of Taxes (506) -- Accumulated Translation Adjustment -- 2 ------- ------- Net Change in Stockholders' Equity 16 682 ------- ------- BALANCE AT JUNE 30, $ 11,180 $10,533 ======= ======= As of June 30, 1994, the Corporation has repurchased approximately 3.2 million shares of its Common Stock. 14 CHEMICAL BANKING CORPORATION and Subsidiaries LOAN INFORMATION (in millions) June 30, June 30, 1994 1993 ------- ------- LOANS: Commercial: Commercial Real Estate $ 7,176 $ 8,804 Other Commercial 40,694 46,247 ------- -------- Total Commercial 47,870 55,051 ------- -------- Consumer: Residential Mortgage 12,487 11,834 Credit Card 7,774 6,279 Other Consumer 6,554 6,036 ------- -------- Total Consumer 26,815 24,149 ------- -------- Total Loans $74,685 $ 79,200 ======= ======== [FN] Included in Other Commercial are loans previously classified as LDC loans. 15
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 June 30, 1994 June 30, 1993 -------------------------------- ------------------------------ Average Rate Average Rate Balance Interest (Annualized) Balance Interest (Annualized) ------- -------- ------------ -------- -------- ------------ ASSETS Deposits with Banks $ 4,606 $ 100 8.66% $ 4,548 $ 73 6.40% Federal Funds Sold and Securities Purchased Under Resale Agreements 11,732 121 4.13% 9,536 80 3.40% Trading Assets 12,042 191 6.32% 7,591 103 5.43% Securities 26,594 434 6.54% 24,029 444 7.39% Loans 74,144 1,377 7.44% 79,900 1,438 7.19% -------- -------- -------- ------- Total Interest-Earning Assets 129,118 $ 2,223 6.89% 125,604 $ 2,138 6.81% Allowance for Losses (3,027) (3,095) Cash and Due from Banks 8,618 8,548 Risk Management Instruments 15,984 -- Other Assets 13,373 15,293 -------- -------- Total Assets $164,066 $146,350 ======== ======== LIABILITIES Domestic Retail Time Deposits $ 44,308 $ 273 2.48% $ 46,775 $ 325 2.79% Domestic Negotiable Certificates of Deposit and Other Deposits 5,202 44 3.45% 6,464 50 3.07% Deposits in Foreign Offices 22,680 226 3.94% 20,533 194 3.74% ------- ------- -------- ------- Total Time & Savings Deposits 72,190 543 3.01% 73,772 569 3.08% ------- ------- -------- ------- Short-Term and Other Borrowings: Federal Funds Purchased and Securities Sold Under Repurchase Agreements 18,546 189 4.08% 16,747 123 2.94% Commercial Paper 2,566 25 3.81% 2,591 23 3.55% Other 9,391 145 6.20 % 7,070 107 6.03% ------- -------- -------- ------- Total Short-Term and Other Borrowings 30,503 359 4.71% 26,408 253 3.83% Long-Term Debt 8,370 132 6.34% 8,062 135 6.75% ------- ------- -------- ------- Total Interest- Bearing Liabilities 111,063 1,034 3.73% 108,242 957 3.53% ------- ------- -------- ------- Demand Deposits 21,788 21,521 Risk Management Instruments 14,148 -- Other Liabilities 6,015 6,043 ------- -------- Total Liabilities 153,014 135,806 STOCKHOLDERS' EQUITY Preferred Stock 1,704 1,979 Common Stockholders' Equity 9,348 8,565 ------- -------- Total Stockholders' Equity 11,052 10,544 ------- -------- Total Liabilities and Stockholders' Equity $164,066 $146,350 ======= ======== SPREAD ON INTEREST-BEARING LIABILITIES 3.16% 3.28% ===== ====== NET INTEREST INCOME AND NET YIELD ON INTEREST-EARNING ASSETS $ 1,189 3.69% $ 1,181 3.76% ======= ===== ======= ====== 16
CHEMICAL BANKING CORPORATION and Subsidiaries Average Consolidated Balance Sheet, Interest and Rates (Taxable-Equivalent Interest and Rates; in millions) Six Months Ended Six Months Ended June 30, 1994 June 30, 1993 ------------------------------- --------------------------------- Average Rate Average Rate Balance Interest (Annualized) Balance Interest (Annualized) ------- -------- ----------- ------- -------- ------------ ASSETS Deposits with Banks $ 4,878 $ 194 7.98% $ 4,040 $ 134 6.68% Federal Funds Sold and Securities Purchased Under Resale Agreements 11,809 221 3.77% 9,126 156 3.45% Trading Assets 11,960 364 6.12% 6,623 197 5.99% Securities 26,500 851 6.47% 23,670 873 7.43% Loans 74,312 2,688 7.29% 80,654 2,907 7.26% -------- ------- -------- -------- Total Interest-Earning Assets 129,459 $ 4,318 6.72% 124,113 $ 4,267 6.92% Allowance for Losses (3,057) (3,104) Cash and Due from Banks 8,725 8,462 Risk Management Instruments 15,690 -- Other Assets 13,292 15,018 --------- -------- Total Assets $ 164,109 $144,489 ========= ======== LIABILITIES Domestic Retail Deposits $ 45,173 $ 521 2.32% $ 46,243 $ 633 2.76% Domestic Negotiable Certificates of Deposit and Other Deposits 5,325 90 3.44% 6,507 99 3.06% Deposits in Foreign Offices 22,825 452 3.97% 21,020 430 4.10% --------- ------- -------- -------- Total Time & Savings Deposits 73,323 1,063 2.92% 73,770 1,162 3.17% --------- ------- -------- -------- Short-Term and Other Borrowings: Federal Funds Purchased and Securities Sold Under Repurchase Agreements 17,310 326 3.80% 16,470 261 3.20% Commercial Paper 2,488 46 3.69% 2,489 45 3.60% Other 9,526 279 5.90% 6,447 199 6.22% --------- ------- -------- -------- Total Short-Term and Other Borrowings 29,324 651 4.47% 25,406 505 4.01% Long-Term Debt 8,434 267 6.39% 7,768 265 6.89% --------- ------- -------- -------- Total Interest- Bearing Liabilities 111,081 1,981 3.59% 106,944 1,932 3.64% --------- ------- -------- -------- Demand Deposits 22,204 21,267 Risk Management Instruments 13,611 -- Other Liabilities 6,110 5,954 --------- -------- Total Liabilities 153,006 134,165 --------- -------- STOCKHOLDERS' EQUITY Preferred Stock 1,679 1,922 Common Stockholders' Equity 9,424 8,402 --------- -------- Total Stockholders' Equity 11,103 10,324 --------- -------- Total Liabilities and Stockholders' Equity $ 164,109 $144,489 ========= ======== SPREAD ON INTEREST-BEARING LIABILITIES 3.13% 3.28% ===== ====== NET INTEREST INCOME AND NET YIELD ON INTEREST-EARNING ASSETS $ 2,337 3.64% $ 2,335 3.79% ======= ===== ======= ====== 17