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Previous: SALOMON BROS MORT SEC VII INC AST BK CERT SERIES 1998-OPT1, 8-K, 1998-11-20 |
Next: DIRECTRIX INC, SB-2/A, 1998-11-20 |
<PAGE>
FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) November 20, 1998
-----------------------------
BANK ONE CORPORATION
- --------------------------------------------------------------------------------
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
Delaware 333-60313 31-0738296
- --------------------------------------------------------------------------------
(STATE OR OTHER JURISDICTION (COMMISSION (IRS EMPLOYER
OF INCORPORATION) FILE NUMBER) IDENTIFICATION NO.)
One First National Plaza, Chicago, IL 60670
- --------------------------------------------------------------------------------
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE 312-732-4000
------------
<PAGE>
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
- ------
The Registrant hereby incorporates by reference the information contained in
the Exhibit hereto listed below in response to this Item 7, in connection with
the merger of First Chicago NBD Corporation, a Delaware corporation, with and
into the Registrant, successor to BANC ONE CORPORATION, an Ohio corporation.
Exhibit Number Description of Exhibits
- -------------- -----------------------
99 Supplemental financial information for each of the seven
calendar quarters in the period from January 1, 1997 through
September 30, 1998.
Pursuant to the requirements of the Securities Exchange Act of l934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
BANK ONE CORPORATION
--------------------
(REGISTRANT)
Date: November 20, 1998 By: /s/ William J. Roberts
-------------------- --------------------------
Title: Controller
2
<PAGE>
EXHIBIT INDEX
Exhibit Number Description of Exhibits
- -------------- -----------------------
99 Supplemental financial information for each of the seven
calendar quarters in the period from January 1, 1997 through
September 30, 1998.
3
<PAGE>
EXHIBIT 99
BANK ONE CORPORATION
Supplemental Financial Information for Seven Calendar Quarters
January 1, 1997 Through September 30, 1998
<PAGE>
BANK ONE CORPORATION AND SUBSIDIARIES
<TABLE>
<CAPTION>
Three Months Ended
-------------------------------------
Financial Highlights Sep 30, Jun 30, Mar 31,
($ millions, except per share amounts) 1998 1998 1998
- ----------------------------------------- --------- --------- ---------
<S> <C> <C> <C>
PER SHARE DATA
- --------------
Earnings - Basic $ 0.90 $ 0.76 $ 0.80
- Diluted 0.89 0.75 0.78
Dividends 0.38 0.38 0.38
INCOME STATEMENT DATA
- ---------------------
Net income $ 1,054 $ 895 $ 933
Net interest income (FTE) 2,339 2,335 2,283
Provision for credit losses 345 400 391
Noninterest income 2,062 2,132 1,953
Noninterest expense 2,539 2,719 2,431
FINANCIAL PERFORMANCE RATIOS
- ----------------------------
Net interest margin - managed 5.46% 5.31% 5.40%
- reported 4.49 4.45 4.47
Return on assets 1.77 1.49 1.59
Return on common equity 20.7 18.6 20.3
Operating efficiency - managed 50.8 50.9 50.2
- reported 57.7 58.0 57.4
BALANCE SHEET DATA
- ------------------
Average: Loans - managed $ 197,978 $ 197,867 $ 196,002
- reported 154,466 158,207 158,091
Earning assets 206,736 210,628 207,243
Total assets 236,573 241,010 238,038
Deposits 148,393 151,594 150,475
Common equity 20,098 19,246 18,597
End of Period: Loans - managed $ 203,443 $ 200,726 $ 197,067
- reported 154,057 160,023 158,387
Total assets 238,658 244,178 240,560
Deposits 148,924 154,507 153,817
Common equity 20,428 19,575 18,945
</TABLE>
1
<PAGE>
BANK ONE CORPORATION AND SUBSIDIARIES
<TABLE>
<CAPTION>
Three Months Ended
---------------------------------------------------
Financial Highlights Dec 31, Sep 30, Jun 30, Mar 31,
($ millions, except per share amounts) 1997 1997 1997 1997
- ------------------------------------------ --------- --------- --------- ---------
<S> <C> <C> <C> <C>
PER SHARE DATA
- --------------
Earnings - Basic $ 0.76 $ 0.72 $ 0.36 $ 0.66
- Diluted 0.75 0.70 0.35 0.64
Dividends 0.345 0.345 0.345 0.345
INCOME STATEMENT DATA
- ---------------------
Net income $ 890 $ 850 $ 428 $ 792
Net interest income (FTE) 2,301 2,393 2,417 2,377
Provision for credit losses 448 477 591 472
Noninterest income 1,897 1,862 1,531 1,535
Noninterest expense 2,448 2,458 2,637 2,197
FINANCIAL PERFORMANCE RATIOS
- ----------------------------
Net interest margin - managed 5.27% 5.38% 5.44% 5.51%
- reported 4.49 4.63 4.79 4.86
Return on assets 1.52 1.45 0.75 1.43
Return on common equity 19.1 18.3 8.9 17.0
Operating efficiency - managed 51.9 51.8 51.7 49.9
- reported 58.3 57.8 58.3 56.2
BALANCE SHEET DATA
- ------------------
Average: Loans - managed $ 193,076 $ 190,503 $ 185,898 $ 182,045
- reported 156,908 158,903 155,555 152,253
Earning assets 203,459 204,833 202,528 198,433
Total assets 232,561 231,963 229,964 224,931
Deposits 149,344 147,698 145,980 143,066
Common equity 18,313 18,239 18,740 18,550
End of Period: Loans - managed $ 196,993 $ 192,975 $ 189,428 $ 184,124
- reported 159,579 157,351 158,626 154,172
Total assets 239,372 235,629 237,270 230,077
Deposits 153,726 150,796 152,672 146,397
Common equity 18,724 18,398 18,509 18,566
</TABLE>
2
<PAGE>
BANK ONE CORPORATION and Subsidiaries
<TABLE>
<CAPTION>
Three Months Ended
------------------------------------------
Consolidated Statement of Income Sep 30, Jun 30, Mar 31,
($ millions, except per share amounts) 1998 1998 1998
- ------------------------------------------------------------ ----------- ----------- -----------
<S> <C> <C> <C>
Interest Income $ 4,349 $ 4,388 $ 4,317
Interest Expense 2,039 2,084 2,065
----------- ----------- -----------
Net interest income 2,310 2,304 2,252
Provision for credit losses 345 400 391
----------- ----------- -----------
Net interest income after provision for credit losses 1,965 1,904 1,861
----------- ----------- -----------
Noninterest Income
Trading profits (losses) 18 65 60
Equity securities gains(losses) (4) 121 72
Investment securities gains(losses) 41 49 33
----------- ----------- -----------
Market-driven revenue 55 235 165
Credit card fees 930 674 738
Fiduciary and investment management fees 207 203 198
Service charges and commissions 639 666 660
----------- ----------- -----------
Fee-based revenue 1,776 1,543 1,596
Other income 231 354 192
----------- ----------- -----------
Total noninterest income 2,062 2,132 1,953
Noninterest Expense
Salaries and related costs 1,080 1,123 1,107
Net occupancy and equipment expense 217 209 202
Depreciation and amortization 167 167 166
Outside services and processing 318 348 273
Marketing and development 264 221 199
Communication and transportation 192 190 185
Other expense 301 334 299
----------- ----------- -----------
Operating expenses 2,539 2,592 2,431
Merger-related and restructuring costs - 127 -
----------- ----------- -----------
Total nonininterest expense 2,539 2,719 2,431
----------- ----------- -----------
Income before income taxes 1,488 1,317 1,383
Provision for income taxes 434 422 450
----------- ----------- -----------
Net income $ 1,054 $ 895 $ 933
=========== =========== ===========
Net income attributable to common stockholders' equity $ 1,051 $ 891 $ 929
=========== =========== ===========
Earnings per common share
--Basic $ 0.90 $ 0.76 $ 0.80
--Diluted 0.89 0.75 0.78
Average common shares outstanding(millions)
--Basic 1,172 1,169 1,165
--Diluted 1,188 1,189 1,191
</TABLE>
3
<PAGE>
BANK ONE CORPORATION and Subsidiaries
<TABLE>
<CAPTION>
Three Months Ended
-------------------------------------------------------
Consolidated Statement of Income Dec 31, Sep 30, Jun 30, Mar 31,
($ millions, except per share amounts) 1997 1997 1997 1997
- ----------------------------------------------------------- ---------- ----------- ------------ ----------
<S> <C> <C> <C> <C>
Interest Income $ 4,344 $ 4,444 $ 4,397 $ 4,229
Interest Expense 2,075 2,089 2,021 1,899
--------- ---------- ----------- ---------
Net interest income 2,269 2,355 2,376 2,330
Provision for credit losses 448 477 591 472
--------- ---------- ----------- ---------
Net interest income after provision for credit losses 1,821 1,878 1,785 1,858
--------- ---------- ----------- ---------
Noninterest Income
Trading profits (losses) (1) 42 43 33
Equity securities gains(losses) 52 93 88 101
Investment securities gains(losses) 20 44 (4) 41
--------- ---------- ----------- ---------
Market-driven revenue 71 179 127 175
Credit card fees 809 751 558 521
Fiduciary and investment management fees 190 191 180 185
Service charges and commissions 625 607 591 568
--------- ---------- ----------- ---------
Fee-based revenue 1,624 1,549 1,329 1,274
Other income 202 134 75 86
--------- ---------- ----------- ---------
Total noninterest income 1,897 1,862 1,531 1,535
Noninterest Expense
Salaries and related costs 1,096 1,084 1,019 1,025
Net occupancy and equipment expense 189 192 174 184
Depreciation and amortization 181 170 173 169
Outside services and processing 334 300 263 248
Marketing and development 170 280 234 153
Communication and transportation 196 178 175 162
Other expense 282 254 262 256
--------- ---------- ----------- ---------
Operating expenses 2,448 2,458 2,300 2,197
Merger-related and restructuring costs - - 337 -
--------- ---------- ----------- ---------
Total nonininterest expense 2,448 2,458 2,637 2,197
--------- ---------- ----------- ---------
Income before income taxes 1,270 1,282 679 1,196
Provision for income taxes 380 432 251 404
--------- ---------- ----------- ---------
Net income $ 890 $ 850 $ 428 $ 792
========= ========== =========== =========
Net income attributable to common stockholders' equity $ 883 $ 842 $ 417 $ 779
========= ========== =========== =========
Earnings per common share
--Basic $ 0.76 $ 0.72 $ 0.36 $ 0.66
--Diluted 0.75 0.70 0.35 0.64
Average common shares outstanding(millions)
--Basic 1,169 1,177 1,172 1,183
--Diluted 1,196 1,209 1,196 1,235
</TABLE>
4
<PAGE>
BANK ONE CORPORATION and Subsidiaries
<TABLE>
<CAPTION>
Consolidated Balance Sheet Sep 30, Jun 30, Mar 31,
($ millions) 1998 1998 1998
- ----------------------------------------------------------- ----------------- ------------- --------------
<S> <C> <C> <C>
Assets
Cash and due from banks $ 14,109 $ 16,217 $ 15,142
Interest bearing due from banks 4,621 5,590 5,167
Federal funds sold and securities under resale agreements 10,066 9,040 9,121
Trading assets 5,770 5,342 5,250
Derivative product assets 4,600 4,342 4,373
Investment securities 32,658 31,863 31,388
Loans and leases:
Commercial 81,895 83,279 81,152
Consumer 56,379 58,737 58,173
Credit Card 15,783 18,007 19,062
----------------- ------------- --------------
Total loans 154,057 160,023 158,387
Allowance for credit losses (2,751) (2,752) (2,794)
------------------ ------------- ---------------
Loans, net 151,306 157,271 155,593
Other assets:
Bank premises and equipment, net 3,431 3,433 3,454
Customer acceptance liability 434 405 595
Other 11,663 10,675 10,477
------------------ ------------- ---------------
Total other assets 15,528 14,513 14,526
================== ============= ===============
Total assets $ 238,658 $ 244,178 $ 240,560
================== ============== ===============
Liabilities
Deposits:
Demand $ 34,757 $ 38,551 $ 36,706
Savings 58,813 59,542 60,561
Time 36,694 37,887 39,716
Foreign offices 18,660 18,527 16,834
------------------ --------------- ---------------
Total deposits 148,924 154,507 153,817
Federal funds purchased and repurchase agreements 20,619 19,088 19,818
Other short-term borrowings 13,223 15,768 14,079
Long-term borrowings 21,138 21,245 21,286
Guaranteed preferred beneficial interest in the
Corporation's junior subordinated debt 1,003 1,003 1,003
Acceptances outstanding 434 405 595
Derivative product liabilities 4,749 4,327 4,143
Other liabilities 7,950 8,070 6,584
------------------ --------------- ---------------
Total liabilities 218,040 224,413 221,325
------------------- --------------- ---------------
Stockholders' Equity
Preferred stock 190 190 290
Common stock 12 12 12
Surplus 12,488 12,549 12,583
Retained earnings 9,750 9,094 8,602
Deferred compensation (157) (182) (162)
Accumulated other adjustments to stockholders' equity 244 177 208
Treasury stock (1,909) (2,075) (2,298)
------------------- --------------- ---------------
Total stockholders' equity 20,618 19,765 19,235
------------------- --------------- ---------------
Total liabilities and stockholders' equity $ 238,658 $ 244,178 $ 240,560
================== =============== ===============
Common shares - period end (millions)
Common shares issued 1,223 1,222 1,221
Treasury shares 47 52 56
Common shares outstanding 1,176 1,170 1,165
</TABLE>
5
<PAGE>
BANK ONE CORPORATION And Subsidiaries
<TABLE>
<CAPTION>
Consolidated Balance Sheet Dec 31, Sep 30, Jun 30, Mar 31,
($ millions) 1997 1997 1997 1997
- ------------------------------------------------------------ ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Assets
Cash and due from banks $ 15,380 $ 14,750 $ 14,758 $ 12,632
Interest bearing due from banks 6,910 7,722 7,737 7,176
Federal funds sold and securities under resale agreements 9,168 8,225 9,058 7,248
Trading assets 5,246 5,406 5,461 5,684
Derivative product assets 4,623 3,838 3,816 5,387
Investment securities 26,039 26,134 24,903 27,839
Loans and leases:
Commercial 79,306 76,607 77,503 75,758
Consumer 57,608 58,993 57,721 55,450
Credit Card 22,665 21,751 23,402 22,964
----------- ----------- --------- ----------
Total loans 159,579 157,351 158,626 154,172
Allowance for credit losses (2,817) (2,836) (2,858) (2,712)
----------- ----------- --------- ----------
Loans, net 156,762 154,515 155,768 151,460
Other assets:
Bank premises and equipment, net 3,426 3,341 3,337 3,326
Customer acceptance liability 741 741 693 606
Other 11,077 10,957 11,739 8,719
----------- ----------- --------- ----------
Total other assets 15,244 15,039 15,769 12,651
----------- ----------- --------- ----------
Total assets $ 239,372 $ 235,629 $ 237,270 $ 230,077
=========== =========== ========= ==========
Liabilities
Deposits:
Demand $ 35,954 $ 35,176 $ 36,701 $ 32,208
Savings 58,946 57,317 57,005 56,726
Time 40,144 41,648 42,029 41,666
Foreign offices 18,682 16,655 16,937 15,797
----------- ----------- --------- ----------
Total deposits 153,726 150,796 152,672 146,397
Federal funds purchased and repurchase agreements 20,346 18,409 19,574 22,422
Other short-term borrowings 12,806 15,174 16,668 14,136
Long-term borrowings 20,543 20,664 18,326 15,423
Guaranteed preferred beneficial interest in the
Corporation's junior subordinated debt 1,003 1,003 1,003 1,003
Acceptances outstanding 741 741 693 606
Derivative product liabilities 4,629 3,738 3,866 5,133
Other liabilities 6,528 6,242 5,485 5,905
----------- ----------- --------- ----------
Total liabilities 220,322 216,767 218,287 211,025
----------- ----------- --------- ----------
Stockholders' Equity
Preferred stock 326 464 474 486
Common stock 12 12 11 12
Surplus 12,584 9,622 9,601 9,884
Retained earnings 8,063 10,436 9,952 9,845
Deferred compensation (137) (134) (136) (125)
Accumulated other adjustments to stockholders' equity 209 171 76 (75)
Treasury stock (2,007) (1,709) (995) (975)
----------- ----------- --------- ----------
Total stockholders' equity 19,050 18,862 18,983 19,052
----------- ----------- --------- ----------
Total liabilities and stockholders' equity $ 239,372 $ 235,629 $ 237,270 $ 230,077
=========== =========== ========= ==========
Common Shares - period end(1) (millions)
Common shares issued 1,219 1,158 1,154 1,150
Treasury shares 51 44 28 25
Common shares outstanding 1,168 1,114 1,126 1,125
</TABLE>
(1) March, June, & September 1997 amounts have not been restated for 10% stock
dividend.
6
<PAGE>
BANK ONE CORPORATION and Subsidiaries
<TABLE>
<CAPTION>
Third Quarter 1998 Second Quarter 1998
------------------------------- ----------------------------
Average Balance Sheet, Yields, & Rates Average Income/ Yield/ Average Income/ Yield/
($ millions) Balance Expense Rate Balance Expense Rate
- -------------------------------------- ------------------------------- ----------------------------
<S> <C> <C> <C> <C> <C> <C>
Short-term investments $ 12,936 $ 178 5.46 % $ 14,832 $ 198 5.35 %
Trading assets (1) 6,470 99 6.07 5,972 90 6.04
Investment securities: (1)
U.S. government and federal agency 16,069 267 6.59 17,763 293 6.62
States and political subdivisions 2,168 41 7.50 2,258 45 7.99
Other 14,627 250 6.78 11,596 187 6.47
--------- ------- ----- --------- ------- -----
Total investment securities 32,864 558 6.74 31,617 525 6.66
Loans: (1)(2)
Commercial 81,255 1,591 7.77 82,427 1,602 7.80
Consumer 57,633 1,362 9.38 57,207 1,253 8.79
Credit card 15,578 590 15.03 18,573 751 16.22
--------- ------- ----- --------- ------- -----
Total loans,net 154,466 3,543 9.10 158,207 3,606 9.14
Total earning assets 206,736 4,378 8.40 210,628 4,419 8.42
Allowance for credit losses (2,714) (2,748)
Other assets 32,551 33,130
========= =========
Total assets $ 236,573 $ 241,010
========= =========
Deposits -- interest bearing:
Savings $ 20,523 $ 117 2.26 % $ 21,566 $ 123 2.29 %
Money market 38,857 370 3.78 38,624 366 3.80
Time 37,285 497 5.29 38,956 532 5.48
Foreign offices 18,384 246 5.31 17,840 234 5.26
--------- ------- ----- --------- ------- -----
Total deposits -- interest bearing 115,049 1,230 4.24 116,986 1,255 4.30
Federal funds purchased and securities
under repurchase agreements 20,792 278 5.30 20,956 270 5.17
Other short-term borrowings 13,652 181 5.26 14,969 202 5.41
Long-term debt 21,771 350 6.38 22,404 357 6.39
--------- ------- ----- --------- ------- -----
Total interest-bearing liabilities 171,264 2,039 4.72 175,315 2,084 4.77
Demand deposits 33,344 34,608
Other liabilities 11,676 11,646
Preferred stock 191 195
Common stockholders' equity 20,098 19,246
========= =========
Total liabilities and equity $ 236,573 $ 241,010
========= =========
Interest income/earning assets $ 4,378 8.40 % $ 4,419 8.42 %
Interest expense/earning assets 2,039 3.91 2,084 3.97
------- ----- ------- -----
Net interest margin $ 2,339 4.49 % $ 2,335 4.45 %
======= ===== ======= =====
</TABLE>
(1) Includes tax-equivalent adjustments based on a 35% federal income tax rate.
(2) Nonperforming loans are included in balances used to determine the average
rate.
7
<PAGE>
BANK ONE CORPORATION and Subsidiaries
<TABLE>
<CAPTION>
First Quarter 1998 Fourth Quarter 1997
------------------------- ---------------------------------
Average Balance Sheet, Yields, & Rates Average Income/ Yield/ Average Income/ Yield/
($ millions) Balance Expense Rate Balance Expense Rate
- ------------------------------------------- ------------------------ ---------------------------------
<S> <C> <C> <C> <C> <C> <C>
Short-term investments $ 14,895 $ 201 5.47 % $ 15,613 $ 220 5.59 %
Trading assets (1) 6,413 92 5.82 5,828 91 6.19
Investment securities: (1)
U.S. government and federal agency 18,205 299 6.66 17,233 304 7.00
States and political subdivisions 2,335 47 8.16 2,477 50 8.01
Other 7,304 96 5.33 5,400 42 3.09
--------- ------ ----- --------- ------- ------
Total investment securities 27,844 442 6.44 25,110 396 6.26
Loans: (1)(2)
Commercial 79,724 1,556 7.92 77,995 1,560 7.94
Consumer 57,734 1,461 10.26 57,589 1,358 9.36
Credit card 20,633 596 11.71 21,324 751 13.97
--------- ------ ----- --------- ------- ------
Total loans, net 158,091 3,613 9.27 156,908 3,669 9.28
Total earnings assets 207,243 4,348 8.51 203,459 4,376 8.53
Allowance for credit losses (2,764) (2,797)
Other assets 33,559 31,899
========= ---------
Total assets $ 238,038 $ 232,561
========= =========
Deposits -- interest bearing:
Savings $ 21,520 $ 125 2.36 % $ 21,329 $ 126 2.34 %
Money market 37,882 360 3.85 36,550 352 3.82
Time 39,858 541 5.50 40,865 569 5.52
Foreign offices 17,856 231 5.25 17,957 238 5.26
--------- ------ ----- --------- ------- ------
Total deposits -- interest bearing 117,116 1,257 4.35 116,701 1,285 4.37
Federal funds purchased and securities
under repurchase agreements 21,815 282 5.24 18,512 247 5.29
Other short-term borrowings 12,680 173 5.53 13,464 196 5.78
Long-term debt 21,974 353 6.52 21,750 347 6.33
--------- ------ ----- --------- ------- ------
Total interest-bearing liabilities 173,585 2,065 4.82 170,427 2,075 4.83
Demand deposits 33,359 32,643
Other liabilities 12,179 10,793
Preferred stock 318 385
Common stockholders' equity 18,597 18,313
========= ---------
Total liabilities and equity $ 238,038 $ 232,561
========= =========
Interest income/earning assets $4,348 8.51 % $ 4,376 8.53 %
Interest expense/earning assets 2,065 4.04 2,075 4.04
------ ----- ------- -----
Net interest margin $2,283 4.47 % $ 2,301 4.49 %
====== ===== ======= =====
</TABLE>
(1) Includes tax-equivalent adjustments based on a 35% federal income tax rate.
(2) Nonperforming loans are included in balances used to determine the average
rate.
8
<PAGE>
BANK ONE CORPORATION and Subsidiaries
<TABLE>
<CAPTION>
Third Quarter 1997 Second Quarter 1997
-------------------------------- -----------------------------------
Average Balance Sheet, Yields, & Rates Average Income/ Yield/ Average Income/ Yield/
($ Millions) Balance Expense Rate Balance Expense Rate
- -------------------------------------- -------------------------------- -----------------------------------
<S> <C> <C> <C> <C> <C> <C>
Short-term investments $ 14,677 $ 207 5.60 % $ 14,532 $ 202 5.58 %
Trading assets (1) 5,777 84 5.77 5,345 78 5.85
Investment securities: (1)
U.S. government and federal agency 17,975 300 6.62 19,658 332 6.77
States and political subdivisions 2,587 53 8.13 2,649 56 8.48
Other 4,914 67 5.41 4,789 70 5.86
--------- ------- ----- ---------- ------- -----
Total investment securities 25,476 420 6.54 27,096 458 6.78
Loans: (1)(2)
Commercial 77,363 1,559 7.99 76,771 1,541 8.05
Consumer 57,422 1,365 9.43 56,097 1,284 9.18
Credit card 24,118 847 13.93 22,687 875 15.47
--------- ------- ----- ---------- ------- -----
Total loans, net 158,903 3,771 9.42 155,555 3,700 9.54
Total earning assets 204,833 4,482 8.68 202,528 4,438 8.79
Allowance for credit losses (2,847) $ (2,691)
Other assets 29,977 30,127
--------- ----------
Total assets $ 231,963 $ 229,964
========= ==========
Deposits -- interest bearing:
Savings $ 21,964 $ 127 2.29 % $ 22,484 $ 130 2.32 %
Money market 35,064 334 3.78 34,123 319 3.75
Time 42,082 589 5.55 $ 42,309 585 5.55
Foreign offices 17,126 226 5.24 16,174 210 5.21
--------- ------- ----- ---------- ------- -----
Total deposits -- interest bearing 116,236 1,276 4.36 115,090 1,244 4.34
Federal funds purchased and securities
under repurchase agreements 20,245 270 5.29 21,168 280 5.31
Other short-term borrowings 14,682 208 5.62 14,676 206 5.63
Long-term debt 20,187 335 6.58 17,993 291 6.49
--------- ------- ----- ---------- ------- -----
Total interest-bearing liabilities 171,350 2,089 4.84 168,927 2,021 4.80
Demand deposits 31,462 30,890
Other liabilities 10,445 10,928
Preferred stock 467 479
Common stockholders' equity 18,239 18,740
--------- ----------
Total liabilities and equity $ 231,963 $ 229,964
========= ==========
Interest income/earning assets $ 4,482 8.68 % $ 4,438 8.79 %
Interest expense/earning assets 2,089 4.05 2,021 4.00
------- ----- ------- -----
Net interest margin $ 2,393 4.63 % $ 2,417 4.79%
======= ===== ======= =====
</TABLE>
(1) Includes tax-equivalent adjustments based on a 35% federal income tax rate.
(2) Nonperforming loans are included in balances used to determine the average
rate.
9
<PAGE>
<TABLE>
<CAPTION>
First Quarter 1997
------------------------------------
Average Balance Sheet, Yields, & Rates Average Income/ Yield/
($ Millions) Balance Expense Rate
- ------------------------------------------------- ---------- ---------- ----------
<S> <C> <C> <C>
Short-term investments $ 12,793 $ 172 5.45 %
Trading assets (1) 5,511 78 5.74
Investment securities: (1)
U.S. government and federal agency 20,581 337 6.64
States and political subdivisions 2,884 61 8.58
Other 4,411 67 6.16
---------- --------- -----
Total investment securities 27,876 465 6.77
Loans: (1)(2)
Commercial 74,363 1,448 7.90
Consumer 54,488 1,317 9.80
Credit card 23,402 796 13.79
---------- --------- -----
Total loans, net 152,253 3,561 9.49
Total earning assets 198,433 4,276 8.74
Allowance for credit losses (2,668)
Other assets 29,166
----------
Total assets $ 224,931
==========
Deposits -- interest bearing:
Savings $ 23,889 $ 136 2.31 %
Money market 32,472 297 3.71
Time 42,334 572 5.48
Foreign offices 14,603 181 5.03
---------- --------- -----
Total deposits -- interest bearing 113,298 1,186 4.25
Federal funds purchased and securities
under repurchase agreements 21,836 276 5.13
Other short-term borrowings 13,688 176 5.21
Long-term debt 15,769 261 6.71
---------- --------- -----
Total interest-bearing liabilities 164,591 1,899 4.68
Demand deposits 29,768
Other liabilities 11,402
Preferred stock 620
Common stockholders' equity 18,550
----------
Total liabilities and equity $ 224,931
==========
Interest income/earning assets $ 4,276 8.74 %
Interest expense/earning assets 1,899 3.88
--------- ------
Net interest margin $ 2,377 4.86%
========= =====
</TABLE>
(1) Includes tax-equivalent adjustments based on a 35% federal income tax rate.
(2) Nonperforming loans are included in balances used to determine the average
rate.
10
<PAGE>
BANK ONE CORPORATION and Subsidiaries
<TABLE>
<CAPTION>
Three Months Ended
-----------------------------------
Credit Quality Sep 30, Jun 30, Mar 31,
($ millions) 1998 1998 1998
- ------------------------------------------ -------- ------- --------
<S> <C> <C> <C>
Provision for credit losses $ 345 $ 400 $ 391
Gross charge-offs $ 443 $ 560 $ 565
Recoveries 98 118 151
-------- ------- -------
Net charge-offs $ 345 $ 442 $ 414
Net charge-offs:
Commercial $ 43 $ 80 $ 19
Consumer 98 95 116
Credit card 204 267 279
-------- ------- -------
Total net charge-offs $ 345 $ 442 $ 414
Total net charge-offs--managed $ 943 $ 1,065 $ 1,020
Net charge-off ratios:
Commercial 0.21% 0.39% 0.10%
Consumer 0.68 0.66 0.80
Credit card 5.24 5.81 5.54
Total net charge-off ratio 0.89 1.12 1.05
Total net charge-off ratio -- managed 1.91 2.15 2.08
Allowance for credit losses - period end $ 2,751 $ 2,752 $ 2,794
Nonperforming assets - period end:
Nonperforming loans $ 718 $ 640 $ 725
Other real estate owned 118 100 89
-------- ------- -------
Total nonperforming assets $ 836 $ 740 $ 814
Allowance to ending loans 1.79% 1.72% 1.76%
Allowance to nonperforming loans 383 430 385
Nonperforming assets ratio 0.54 0.46 0.51
Capital
($ millions, except per share amounts)
- ------------------------------------------
Common equity/assets ratio 8.6% 8.0% 7.9%
Tier 1 capital ratio 8.6 8.3 8.3
Total risk adjusted capital ratio 12.4 12.3 12.5
Regulatory leverage ratio 8.5 8.0 7.9
Tangible common equity to net assets 7.7 7.4 7.2
Book value of common equity per share $ 17.37 $ 16.72 $ 16.26
Intangibles--period end
Goodwill $ 1,094 $ 1,117 $ 1,095
Other intangibles 1,125 631 700
-------- -------- --------
Total intangibles $ 2,219 $ 1,748 $ 1,795
</TABLE>
11
<PAGE>
BANK ONE CORPORATION and Subsidiaries
<TABLE>
<CAPTION>
Three Months Ended
---------------------------------------------------
Credit Quality Dec 31, Sep 30, Jun 30, Mar 31,
($ millions) 1997 1997 1997 1997
- ----------------------------------------- ------- ------- ------- --------
<S> <C> <C> <C> <C>
Provision for credit losses $ 448 $ 477 $ 591 $ 472
Gross charge-offs $ 600 $ 609 $ 615 $ 573
Recoveries 133 118 132 127
------- ------ ------- ------
Net charge-offs $ 467 $ 491 $ 483 $ 446
Net charge-offs:
Commercial $ 33 $ 33 $ 9 $ 12
Consumer 107 102 100 111
Credit card 327 356 374 323
------- ------ ------- ------
Total net charge-offs $ 467 $ 491 $ 483 $ 446
Total net charge-offs--managed $ 989 $ 985 $ 988 $ 936
Net charge-off ratios:
Commercial 0.17% 0.17% 0.05% 0.06%
Consumer 0.74 0.71 0.71 0.81
Credit card 6.13 5.90 6.59 5.52
Total net charge-off ratio 1.18 1.23 1.25 1.19
Total net charge-off ratio -- managed 2.05 2.07 2.13 2.06
Allowance for credit losses - period end $ 2,817 $2,836 $ 2,858 $2,712
Nonperforming assets - period end:
Nonperforming loans $ 609 $ 617 $ 636 $ 503
Other real estate owned 85 75 71 92
------- ------ ------- ------
Total nonperforming assets $ 694 $ 692 $ 707 $ 595
Allowance to ending loans 1.77% 1.80% 1.80% 1.76%
Allowance to nonperforming loans 463 460 449 539
Nonperforming assets ratio 0.43 0.44 0.45 0.39
Capital
($ millions, except per share amounts)
- -----------------------------------------
Common equity/assets ratio 7.8% 7.8% 7.8% 8.1%
Tier 1 capital ratio 8.2 8.3 8.4 9.2
Total risk adjusted capital ratio 12.3 12.4 12.6 13.2
Regulatory leverage ratio 7.8 7.9 8.1 8.6
Tangible common equity to net assets 7.2 7.2 7.2 7.6
Book value of common equity per share $ 16.03 $16.51 $ 16.43 $16.51
Intangibles--period end
Goodwill $ 1,120 $1,138 $ 1,158 $ 903
Other intangibles 582 402 357 308
------- ------ ------- ------
Total intangibles $ 1,702 $1,540 $ 1,515 $1,211
</TABLE>
12
<PAGE>
BANK ONE CORPORATION and Subsidiaries
<TABLE>
<CAPTION>
THREE MONTHS ENDED
-------------------------------------------
Managed Income Statement Statistics(1) Sep 30, Jun 30, Mar 31,
($ millions) 1998 1998 1998
- ----------------------------------------------- ---------- ----------- ------------
REPORTED:
- -----------------------------------------------
<S> <C> <C> <C>
Net interest income - FTE $ 2,339 $ 2,335 $ 2,283
Provision for credit losses 345 400 391
Noninterest income 2,062 2,132 1,953
Noninterest expense 2,539 2,719 2,431
Net income 1,054 895 933
Securitized:
- -----------------------------------------------
Net interest income - FTE $ 1,040 $ 934 $ 973
Provision for credit losses 598 623 606
Noninterest income (441) (311) (367)
Noninterest expense 1 - -
Net income - - -
Managed:
- -----------------------------------------------
Net interest income - FTE $ 3,379 $ 3,269 $ 3,256
Provision for credit losses 943 1,023 997
Noninterest income 1,621 1,821 1,586
Noninterest expense 2,540 2,719 2,431
Net income 1,054 895 933
Managed balance sheet and net interest margin:
- -----------------------------------------------
Total average loans $ 197,978 $ 197,867 $ 196,002
Total average earning assets 245,422 247,152 244,387
Net interest margin 5.46% 5.31% 5.40%
</TABLE>
(1) Managed data only adjusted for credit card securitization activity.
13
<PAGE>
BANK ONE CORPORATION And Subsidiaries
<TABLE>
<CAPTION>
THREE MONTHS ENDED
-------------------------------------------------------------
Managed Income Statement Statistics(1) Dec 31, Sep 30, Jun 30, Mar 31,
($ millions) 1997 1997 1997 1997
- --------------------------------------------- ----------- ------------ ----------- -----------
REPORTED:
- ---------------------------------------------
<S> <C> <C> <C> <C>
Net interest income - FTE $ 2,301 $ 2,393 $ 2,417 $ 2,377
Provision for credit losses 448 477 591 472
Noninterest income 1,897 1,862 1,531 1,535
Noninterest expense 2,448 2,458 2,637 2,197
Net income 890 850 428 792
Securitized:
- ---------------------------------------------
Net interest income - FTE $ 897 $ 832 $ 755 $ 730
Provision for credit losses 522 494 505 490
Noninterest income (374) (337) (248) (238)
Noninterest expense 1 1 2 2
Net income - - - -
Managed:
- ---------------------------------------------
Net interest income - FTE $ 3,198 $ 3,225 $ 3,172 $ 3,107
Provision for credit losses 970 971 1,096 962
Noninterest income 1,523 1,525 1,283 1,297
Noninterest expense 2,449 2,459 2,639 2,199
Net income 890 850 428 792
Managed balance sheet and net interest margin:
- ---------------------------------------------
Total average loans $ 193,076 $ 190,503 $ 185,898 $ 182,045
Total average earning assets 240,927 237,676 234,066 228,854
Net interest margin 5.27% 5.38% 5.44% 5.51%
</TABLE>
(1) Managed data only adjusted for credit card securitization activity.
14
<PAGE>
BANK ONE CORPORATION And Subsidiaries
<TABLE>
<CAPTION>
Managed Credit Card Detail
($ millions) Three Months Ended
- ------------------------------------------------------------------ ---------------------------------------------
Sep 30, Jun 30, Mar 31,
1998 1998 1998
---------- --------- ----------
<S> <C> <C> <C> <C> <C>
Period end loans - managed $ 65,169 $ 58,710 $ 57,742
- securitized (49,386) (40,703) (38,680)
- reported 15,783 18,007 19,062
Average loans - managed $ 59,090 $ 58,233 $ 58,544
- securitized (43,512) (39,660) (37,911)
- reported 15,578 18,573 20,633
Net charge-offs - amount - managed $ 802 $ 890 $ 885
- securitized (598) (623) (606)
- reported 204 267 279
Net charge-offs - rate - managed 5.43% 6.15% 6.13%
- securitized 5.50 6.30 6.45
- reported 5.24 5.81 5.54
Delinquency rate - 30+ days - managed 4.50% 4.34% 4.82%
- securitized 4.49 4.34 4.91
- reported 4.54 4.34 4.65
Delinquency rate - 90+ days - managed 1.90% 1.97% 2.19%
- securitized 1.94 2.02 2.24
- reported 1.79 1.85 2.09
Credit card charge volume - managed $ 25,106 $ 24,091 $ 22,701
New accounts opened (thousands) - managed 2,538 2,271 2,330
Cardmembers (thousands) - managed 60,507 55,795 54,565
</TABLE>
15
<PAGE>
BANK ONE CORPORATION And Subsidiaries
<TABLE>
<CAPTION>
Managed Credit Card Detail
($ millions) Three Months Ended
- ------------------------------------------------------------- -------------------------------------------------------
Dec 31, Sep 30, Jun 30, Mar 31,
1997 1997 1997 1997
---------- ----------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
Period end loans - managed $ 60,079 $ 57,375 $ 54,204 $ 52,916
- securitized (37,414) (35,624) (30,802) (29,952)
- reported 22,665 21,751 23,402 22,964
Average loans - managed $ 57,492 $ 55,718 $ 53,030 $ 53,194
- securitized (36,168) (31,600) (30,343) (29,792)
- reported 21,324 24,118 22,687 23,402
Net charge-offs - amount - managed $ 849 $ 850 $ 879 $ 813
- securitized (522) (494) (505) (490)
- reported 327 356 374 323
Net charge-offs - rate - managed 5.91% 6.10% 6.63% 6.11%
- securitized 5.77 6.25 6.66 6.58
- reported 6.13 5.90 6.59 5.52
Delinquency rate - 30+ days - managed 4.90% 4.74% 4.62% 4.94%
- securitized 5.07 4.61 4.77 5.02
- reported 4.61 4.95 4.41 4.83
Delinquency rate - 90+ days - managed 2.11% 1.95% 1.98% 2.21%
- securitized 2.22 1.90 2.04 2.26
- reported 1.94 2.03 1.91 2.13
Credit card charge volume - managed $ 25,166 $ 23,240 $ 21,018 $ 19,353
New accounts opened (thousands) - managed 2,840 2,715 2,634 1,558
Cardmembers (thousands) - managed 55,488 55,308 52,991 54,190
</TABLE>
16
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