For further information, contact
Jacqueline R. Spak (614) 248-1280
John A. Russell (614) 248-5989
FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) November 21, 1994
BANC ONE CORPORATION
(Exact name of registrant as specified in its charter)
Ohio
(State or other jurisdiction of incorporation or
organization)
Commission File Number 1-8552
31-0738296
(IRS Employer I.D. Number)
100 East Broad Street, Columbus, Ohio 43271-0251
(Address of principal executive offices) (Zip Code)
(614) 248-5944
(Registrant's telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last
report)
ITEM 5. OTHER EVENTS
BANC ONE TO TAKE $235 MILLION IN AFTER-TAX CHARGES
IN 4TH QUARTER TO CUT INTEREST-RATE SENSITIVITY
AND REFLECT ACCELERATED CONSOLIDATION
INCREASES SHARE REPURCHASE AUTHORIZATION TO 18 MILLION SHARES
COLUMBUS, OH, November 21, 1994 -- BANC ONE CORPORATION (NYSE: ONE)
announced today that it will take one time charges of up to $235 million after
tax, or $0.58 per share, against fourth quarter earnings to cover the cost of
virtually eliminating its sensitivity to rising short-term interest rates and of
accelerating its ongoing program to reduce costs and increase efficiency in both
its banking and non-banking operations.
BANC ONE also announced an increase in its share repurchase authorization
from 10 million to 18 million shares.
The planned fourth quarter charge has two components. Approximately $170
million after tax is attributable to a loss on the sale of approximately $5.7
billion in fixed-rate securities with an average maturity of 3 years. This
transaction had been hedged earlier in the quarter so that recent declines in
bond prices did not affect the sale. Reinvesting the proceeds of the sale in
short-term assets has virtually eliminated sensitivity to increases in
short-term interest rates. As a result, an increase in short-term interest
rates of up to 200 basis points would likely have less than a one percent impact
on forecasted 1995 earnings.
Additional charges of up to $65 million after tax are attributable to the
anticipated costs of planned actions to accelerate BANC ONE's ongoing program to
consolidate certain banking operations which should reduce future non-interest
expenses.
"We are determined to take the necessary steps in 1994 to put the issue of
interest rate sensitivity behind us and enhance operating efficiency," said
Chairman John B. McCoy. "Although these discretionary actions will end our
25-year record of annual earning increases, nonetheless our 1994 results
will place us among a select group of financial institutions earning over
$1 billion."
BANC ONE CORPORATION had assets of $88.2 billion and common equity of $7.5
billion as of September 30, 1994. BANC ONE now operates 75 banks with 1,425
offices in Arizona, California, Colorado, Illinois, Indiana, Kentucky, Michigan,
Ohio, Oklahoma, Texas, Utah, West Virginia and Wisconsin. BANC ONE also
operates several additional corporations that engage in data processing, venture
capital, investment and merchant banking, trust, brokerage, investment
management, equipment leasing, mortgage banking, consumer finance and insurance.
SIGNATURES
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 thereunto duly authorized.
BANC ONE CORPORATION
11/21/94 s/William C. Leiter
Date William C. Leiter
Controller and
Chief Accounting Officer
