<PAGE> 1
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 report (Date of earliest event reported): April 15, 1997
BANC ONE CORPORATION
(Exact Name of Registrant as Specified in Charter)
Ohio
(State or Other Jurisdiction of Incorporation)
1-8552 31-0738296
(Commission File Number) (IRS Employer Identification No.)
100 East Broad Street, Columbus, Ohio 43271
(Address of Principal Executive Offices)(Zip Code)
Registrant's telephone number, including area code: (614) 248-5944
N/A
(Former Name or Former Address, If Changed Since Last Report)
<PAGE> 2
ITEM 5. OTHER EVENTS
On April 15, 1997, BANC ONE CORPORATION ("BANC ONE") issued a press
release announcing its earnings for the three-month period ended March 31,
1997. A copy of such press release is filed herein as Exhibit 99.1 and
incorporated by reference herein.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(a) Financial Statements
None. The financial statements included in this report are not
required to be filed as part of this report.
(b) Pro Forma Financial Information
None.
(c) Exhibits
Exhibit 99.1 BANC ONE CORPORATION Press Release dated April 15,
1997 titled "Banc One Reports 12% Increase in First
Quarter 1997 Earnings Per Share and Record First
Quarter Earnings."
2
<PAGE> 3
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 hereunto duly authorized.
BANC ONE CORPORATION
(Registrant)
Date: April 17, 1997 By: /s/ STEVEN ALAN BENNETT
--------------------------
Steven Alan Bennett
Senior Vice President and
General Counsel
3
<PAGE> 1
BANC ONE CORPORATION
100 East Broad Street
Columbus, Ohio 43271-0240
NEWS RELEASE
For further information contact:
[BANK ONE LOGO] Jacqueline R. Spak (614) 248-1280
Jay S. Gould (614) 248-0189
John A. Russell (614) 248-5989
FOR RELEASE: April 15, 1997
BANC ONE REPORTS 12% INCREASE IN FIRST QUARTER
1997 EARNINGS PER SHARE AND RECORD FIRST QUARTER EARNINGS
------------------------------------------
BANC ONE CORPORATION, Columbus, Ohio (NYSE:ONE) announced first quarter 1997
earnings per common share of $.86, a 12 percent increase from $.77 per common
share reported in the first quarter of 1996. The Corporation also reported
record first quarter earnings of $371 million, a 7 percent increase over first
quarter 1996 earnings of $346 million.
John B. McCoy, Chairman and Chief Executive Officer of BANC ONE CORPORATION,
said, "We are pleased with our first quarter results. Solid loan growth and
strong performances from lines of business fueled earnings momentum. We look
forward to our pending mergers with Liberty National Bancorp, Inc. and
FirstUSA, Inc. and are encouraged by the opportunities offered through both
mergers and the resulting value they will add to our shareholders."
The Corporation reported a strong return on average common equity of 18.20
percent in the quarter, an increase from 16.38 percent a year ago.
Profitability remained strong as return on average assets was 1.50 percent in
the first quarter, an increase from 1.45 percent in the first quarter of 1996.
Taxable equivalent net interest income increased 7 percent or $87.6 million to
$1.299 billion from $1.211 billion a year ago reflecting both average earning
asset growth and increased net interest margin. Growth in average managed loan
balances remained strong, up 9 percent compared with the year-ago quarter,
while average securities balances declined 12 percent reflecting the ongoing
strategy to improve the mix of higher-yielding earning assets. The 1997 first
quarter net interest margin was 5.76 percent, an increase of 17 basis points
from 5.59 percent reported a year ago.
- more -
<PAGE> 2
BANC ONE
page 2
First quarter non-interest income before securities transactions increased 14
percent or $68.7 million to $570.2 million from $501.5 million in the first
quarter of 1996. Strong growth in non-interest income resulted primarily from
increased activity in investment management, insurance and investment banking,
all of which achieved growth in excess of 10 percent. Also contributing to the
growth was revenue from increased deposit activity, securities brokerage and
equity investments.
Non-interest expense totaled $1.069 billion, an increase of $50 million from
$1.019 billion in the first quarter of 1996. Excluding expense in both quarters
associated with Project One, the Corporation's strategic initiative for the
consolidation and standardization of systems and procedures, non-interest
expense was essentially flat compared with the year ago quarter. The
Corporation's efficiency ratio improved to 57.20% in the first quarter from
59.51% a year ago.
BANC ONE's ending allowance for credit losses was $1.1 billion or 1.48 percent
of ending loans, and provided coverage of 293 percent of nonperforming loans.
The provision for credit losses was $235 million in the first quarter and
exceeded net charge-offs of $212 million by $23 million. This marked the eighth
consecutive quarter provision expense exceeded net charge-offs.
On January 20, 1997, BANC ONE announced an agreement to merge with First USA,
Inc. (NYSE:FUS), a financial services company specializing in the bank card
business. First USA is the fourth largest issuer of domestic Visa and
MasterCard services.
BANC ONE CORPORATION had assets of $101.6 billion and common equity of $8.2
billion at March 31, 1997. BANC ONE now operates 1,502 offices in Arizona,
Colorado, Illinois, Indiana, Kentucky, Louisiana, Ohio, Oklahoma, Texas, Utah,
West Virginia and Wisconsin. BANC ONE also owns several additional
corporations that engage in credit card and merchant processing, consumer
finance, mortgage banking, insurance, venture capital, investment and merchant
banking, trust, brokerage, investment management, equipment leasing and data
processing.
Information about BANC ONE's financial results and its products and services
can be accessed on the Internet at: http://www.bankone.com and through
InvestQuest(TM) at http://www.investquest.com or Fax-on-demand : (614)
844-3860.
<PAGE> 3
[BANK ONE LOGO]
BANC ONE CORPORATION
CONSOLIDATED KEY FINANCIAL DATA SUMMARY
FIRST QUARTER 1997
<TABLE>
<CAPTION>
Three Months Ended Three months ended Change from:
------------------------------------------------------------
March 31, December 31, March 31, Prior
1997 1996 1996 Year
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Common Stock Data
- --------------------------------------------------------------------------------------------------------
Average shares outstanding (000) 426,146 430,992 444,027
Ending shares outstanding (000)(1) 419,738 427,263 435,431
Net income per common share $ 0.86 $ 0.85 $ 0.77 11.69%
Price:
High 49.25 47.88 38.50
Low 39.38 40.38 31.94
Close 39.75 43.00 35.63
Book value 19.54 19.75 18.80 3.94%
Common dividend 0.38 0.34 0.34 11.76%
Income Statement--$(thousands)
- --------------------------------------------------------------------------------------------------------
Total revenue $2,709,584 $2,721,628 $2,487,557 8.93%
Taxable equivalent interest income 2,138,108 2,114,520 2,000,875 6.86
Interest income 2,124,161 2,099,322 1,984,982 7.01
Interest expense 839,602 835,896 790,003 6.28
---------- ---------- ----------
Net interest income 1,284,559 1,263,426 1,194,979 7.50
Provision for credit losses 235,011 243,855 162,421 44.69
Non-interest income 585,423 622,306 502,575 16.48
Non-interest expense 1,068,926 1,106,560 1,019,078 4.89
---------- ---------- ----------
Income before income taxes 566,045 535,317 516,055 9.69
Income taxes (195,380) (165,520) (170,174) 14.81
---------- ---------- ----------
Net income $ 370,665 $ 369,797 $ 345,881 7.17
========== ========== ==========
Net income available to
common stockholders $ 367,242 $ 366,174 $ 341,586 7.51%
========== ========== ==========
</TABLE>
(1) Net of 13.9 million and 5.8 million treasury shares as of March 31, 1997
and December 31, 1996.
<PAGE> 4
BANC ONE CORPORATION and Subsidiaries
<TABLE>
<CAPTION>
QUARTER ENDED
---------------------------------------------------------
March 31, December 31, March 31,
Non-Interest income $(thousands) 1997 1996 1996
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Income from fiduciary activities $ 74,166 $ 77,115 $ 62,511
Service charges on deposit accounts 165,980 170,297 156,816
Loan processing and servicing income:
Mortgage banking 20,306 22,273 19,862
Credit card and merchant processing fees 35,238 44,578 39,738
Loan servicing Income 50,601 38,650 57,645
------------- ------------- -------------
Total loan processing & servicing income 106,145 105,501 117,245
Other income:
Insurance 32,569 33,997 26,215
Securities brokerage 18,907 16,617 17,587
Investment banking 9,293 13,312 8,387
Other 163,128 196,802 112,775
------------- ------------- -------------
Total other income 223,897 260,728 164,964
Securities gains 15,235 8,665 1,039
------------- ------------- -------------
Total non-interest income $ 585,423 $ 622,306 $ 502,575
============= ============= =============
Non-interest expense $(thousands)
- ------------------------------------------------------------------------------------------------------------------------
Salary and related costs $ 525,041 $ 523,338 $ 502,812
Net occupancy expense 47,695 38,519 44,673
Equipment expense 28,214 29,831 28,099
Taxes other than income and payroll 22,638 20,112 24,062
Depreciation and amortization 85,666 90,876 86,216
Outside services and processing 139,974 147,944 125,237
Marketing and development 40,172 47,224 48,114
Communication and transportation 78,595 84,396 75,171
FDIC Insurance 2,865 1,523 4,246
Other 98,066 122,797 80,448
------------- ------------- -------------
Total non-interest expense $ 1,068,926 $ 1,106,560 $ 1,019,078
============= ============= =============
</TABLE>
<PAGE> 5
BANC ONE CORPORATION and Subsidiaries
<TABLE>
<CAPTION>
Quarter Ended
--------------------------------------
March 31, December 31, March 31,
Key Performance Ratios 1997 1996 1996
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
Return on average assets 1.50% 1.49% 1.45%
Return on average common equity 18.20 17.60 16.38
Return on average total equity 17.93 17.33 16.11
Average total equity to average assets 8.36 8.61 9.02
Tangible common equity to net assets 7.46 7.66 7.83
Net interest margin (2) 5.76 5.66 5.59
Net funds function (2) 4.72% 4.58% 4.84%
Capital $(thousands) (1)
- -----------------------------------------------------------------------------
Tier I amount $ 7,876,422 $ 8,078,202 $ 7,838,303
Total qualifying capital 11,550,541 11,730,876 11,004,950
Total risk adjusted assets 89,840,874 89,430,320 81,880,566
Tier I capital ratio 8.77% 9.03% 9.57%
Total risk adjusted capital ratio 12.86 13.12 13.44
Leverage ratio 7.90% 8.24% 8.24%
Intangibles $(thousands)
(As of the end of period)
- -----------------------------------------------------------------------------
Goodwill $ 463,880 $ 471,559 $ 473,305
Other Intangibles 212,210 220,926 279,772
-------------- ------------ -----------
Total Intangibles $ 676,090 $ 692,485 $ 753,077
============== ============ ===========
Credit Quality $(millions)
- -----------------------------------------------------------------------------
Ending allowance for
credit losses $ 1,097.9 $ 1,075.1 $ 1,005.8
Nonperforming assets:
Nonaccrual 371.9 374.2 407.6
Renegotiated 2.3 8.2 2.1
OREO 59.6 53.0 76.6
-------------- ------------ -----------
Total nonperforming assets $ 433.8 $ 435.4 $ 486.3
============== ============ ===========
Loans delinquent over
90 days (1) $ 403.9 $ 396.6 $ 250.2
Gross charge-offs 290.2 291.8 212.4
Recoveries 78.1 61.6 57.7
-------------- ------------ -----------
Net charge-offs $ 212.1 $ 230.2 $ 154.7
============== ============ ===========
Key Credit Ratios (3):
Allowance to ending loans 1.48% 1.45% 1.47%
Nonperforming assets to ending loans (4) 0.57 0.58 0.70
90 days delinquent to ending loans (1)(4) 0.53 0.52 0.36
Net charge-offs to average loans (4) 1.13 1.23 0.89
Allowance to nonperforming loans 293.4% 281.1% 245.5%
</TABLE>
(1) March 31, 1997 amounts represent preliminary data.
(2) Fully taxable equivalent basis.
(3) Prior period amounts have been restated for reclassification of loans held
for sale.
(4) Includes loans held for sale
<PAGE> 6
BANC ONE CORPORATION and Subsidiaries
<TABLE>
<CAPTION>
First Quarter Fourth Quarter First Quarter
1997 1996 1996
Balance Sheet (1)(2) --------------------------------------------- ------------------------------ ----------------------------
Yields/Rates Ending Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/
$(thousands) Balance Balance Expense Rate Balance Expense Rate Balance Expense Rate
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Short term investments $ 367,846 $ 423,580 $ 5,574 5.34% $ 453,442 $ 6,055 5.31% $ 392,058 $ 5,422 5.56%
Loans held for sale 2,368,987 1,420,617 44,160 12.61 452,895 6,394 5.62 589,987 10,830 7.38
Securities: (4)(5)
Taxable securities 13,309,818 13,633,166 220,220 6.55 13,344,066 217,159 6.47 15,474,779 250,096 6.50
Tax exempt securities 1,508,185 1,574,296 31,948 8.23 1,663,596 33,000 7.89 1,733,202 36,572 8.49
------------ ------------ ---------- ----------- ---------- ----------- ----------
Total securities 14,818,003 15,207,462 252,168 6.72 15,007,662 250,159 6.63 17,207,981 286,668 6.70
Loans and leases: (3)
Commercial 20,707,553 20,150,121 411,921 8.29 19,917,607 413,272 8.25 18,864,165 383,599 8.18
Real estate:
Commercial 5,969,802 6,195,684 136,408 8.93 6,322,336 143,131 9.01 5,988,637 134,276 9.02
Construction 3,920,028 3,770,500 89,978 9.68 3,517,746 87,154 9.86 2,920,323 71,788 9.89
Residential 14,292,256 14,087,806 330,122 9.50 13,659,046 321,907 9.38 11,100,771 254,992 9.24
Consumer, net 20,278,391 19,946,561 482,347 9.81 19,137,215 451,844 9.39 20,027,947 487,575 9.79
Credit card 6,553,762 7,950,516 344,494 17.57 9,266,398 393,502 16.89 8,289,355 333,274 16.17
Leases, net 2,334,862 2,312,618 40,936 7.18 2,210,083 41,102 7.40 1,776,069 32,451 7.35
------------ ------------ ---------- ----------- ---------- ----------- ----------
Net loans and leases 74,056,654 74,413,806 1,836,206 10.01 74,030,431 1,851,912 9.95 68,967,267 1,697,955 9.90
------------ ------------ ---------- ----------- ---------- ----------- ----------
Total earning assets 91,611,490 91,465,465 2,138,108 9.48 89,944,430 2,114,520 9.35 87,157,293 2,000,875 9.23
Allowance for credit
losses (1,097,928) (1,076,218) (1,053,156) (1,008,214)
Other assets (4) 11,074,343 9,967,078 9,667,024 9,523,446
------------ ------------ ----------- -----------
Total assets $101,587,905 $100,356,325 $98,558,298 $95,672,525
============ ============ =========== ===========
Deposits:
Non-interest bearing
demand $ 15,696,719 $ 14,424,601 $14,407,459 $13,951,625
Interest bearing
demand 1,950,766 1,918,039 7,528 1.59 2,065,401 8,763 1.69 3,115,025 14,847 1.92
Money market and
savings 30,493,363 30,075,061 252,588 3.41 29,430,505 250,433 3.39 28,053,223 231,983 3.33
Time deposits:
CD's less than
$100,000 18,022,703 18,140,466 247,121 5.52 18,293,149 257,554 5.60 19,794,454 276,031 5.61
CD's $100,000 and
over:
Domestic 3,690,960 4,291,108 55,791 5.27 4,034,001 52,888 5.22 3,915,866 50,209 5.16
Foreign 2,313,704 2,591,751 34,476 5.39 3,081,237 41,512 5.36 1,433,338 19,147 5.37
------------ ------------ ---------- ----------- ---------- ----------- ----------
Total deposits 72,168,215 71,441,026 597,504 3.39 71,311,752 611,150 3.41 70,263,531 592,217 3.39
Borrowed Funds:
Short-term 13,790,966 13,929,432 175,667 5.11 12,798,498 160,953 5.00 11,531,237 149,573 5.22
Long-term 4,905,539 4,168,840 66,431 6.46 3,667,392 63,793 6.92 3,018,706 48,213 6.42
------------ ------------ ---------- ----------- ---------- ----------- ----------
Total borrowed funds 18,696,505 18,098,272 242,098 5.43 16,465,890 224,746 5.43 14,549,943 197,786 5.47
Total interest
bearing liabilities 75,168,001 75,114,697 $ 839,602 4.53% 73,370,183 $ 835,896 4.53% 70,861,849 $ 790,003 4.48%
Other liabilities 2,325,660 2,431,154 2,291,656 2,225,888
Preferred stock 195,594 200,945 213,518 247,442
Common equity (6) 8,201,931 8,184,928 8,275,482 8,385,721
------------ ------------ ----------- -----------
Total liabilities,
common equity &
preferred stock $101,587,905 $100,356,325 $98,558,298 $95,672,525
============ ============ =========== ===========
(1) Fully taxable equivalent basis.
(2) Certain prior period amounts have been reclassified for comparison
purposes.
(3) Nonaccrual loans are included in loan balances.
(4) Average securities balances are based on amortized historical cost,
excluding SFAS 115 adjustments to fair value which are included in other
assets.
(5) Fair value of total securities at March 31, 1997 approximates $14,828,000.
(6) Net unrealized holding gains (losses) on securities available for sale,
net of tax $ (75,864) $ (498) $ 34,530 $ 80,159
============ ============ =========== ===========
</TABLE>
<PAGE> 7
BANC ONE CORPORATION and Subsidiaries
Managed Loan Growth -- $(thousands) (1)(2)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Quarterly Average Balances Quarterly Average Balances
--------------------------------------------------------------------------
First Fourth First Growth Growth
Quarter Quarter Quarter Q1 vs Q4 Q1 vs Q1
1997 1996 1996 % (3) %
--------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Wholesale
Commercial loans & leases $ 22,433,972 $ 22,126,336 $ 20,873,689 5.64% 7.47%
Real estate - construction 3,770,500 3,517,746 2,920,323 29.14 29.11
Real estate - commercial 6,195,685 6,322,336 6,013,247 (8.12) 3.03
-------------- -------------- -------------- ------ ------
Wholesale - subtotal 32,400,157 31,966,418 29,807,259 5.50 8.70
Consumer
Real Estate - Residential 5,625,939 5,745,638 6,193,431 (8.45) (9.16)
Home equity 7,705,792 7,527,766 6,522,679 9.59 18.14
Direct consumer 2,814,353 2,781,416 2,679,672 4.80 5.03
Indirect consumer 14,792,089 14,379,610 13,676,980 11.63 8.15
Student 2,894,618 2,694,019 2,741,152 30.20 5.60
Other consumer 933,904 926,909 796,847 3.06 17.20
Consumer finance 1,672,126 1,411,872 947,511 74.76 76.48
-------------- -------------- -------------- ------ ------
Consumer 36,438,821 35,467,230 33,558,272 11.11 8.58
Total Loans
(excluding -------------- -------------- -------------- ------ ------
Credit Card) 68,838,978 67,433,648 63,365,531 8.45 8.64
Credit card 12,250,026 12,095,977 10,809,342 5.16 13.33
-------------- -------------- -------------- ------ ------
Total loans and leases $ 81,089,004 $ 79,529,625 $ 74,174,873 7.95% 9.32%
============== ============== ============== ====== ======
</TABLE>
(1) Total of on-balance sheet loans and loans sold with servicing retained
exclusive of mortgages securitized in normal mortgage banking activities.
(2) Certain adjustments have been made to conform with current presentation.
(3) Annualized.
(4) Includes loans held for sale.
<TABLE>
<CAPTION>
Period Ending Balances Period Ending Balances
----------------------------------------------------------------------------
Growth Growth
March 31, December 31, March 31, March vs Dec March vs March
1997 1996 1996 % (3) %
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Wholesale
Commercial loans & leases $ 23,013,579 $ 22,529,994 $ 21,459,655 8.70% 7.24%
Real estate - construction 3,920,028 3,601,958 3,004,064 35.81 30.49
Real estate - commercial 5,969,802 6,429,409 6,057,372 (28.99) (1.45)
-------------- -------------- -------------- ------ ------
Wholesale - subtotal 32,903,409 32,561,361 30,521,091 4.26 7.81
Consumer
Real Estate - Residential 5,515,503 5,737,608 6,263,638 (15.70) (11.94)
Home equity 7,793,774 7,631,315 6,622,428 8.63 17.69
Direct consumer 2,733,483 2,772,170 2,669,628 (5.66) 2.39
Indirect consumer 15,154,431 14,467,319 13,868,562 19.26 9.27
Student 2,882,455 2,801,359 2,708,644 11.74 6.42
Other consumer 928,447 932,883 802,532 (1.93) 15.69
Consumer finance 1,824,131 1,564,034 976,668 67.44 86.77
-------------- -------------- -------------- ------ ------
Consumer 36,832,224 35,906,688 33,912,100 10.45 8.61
Total Loans
(excluding -------------- -------------- -------------- ------ ------
Credit Card) 69,735,633 68,468,049 64,433,191 7.51 8.23
Credit card 11,866,330 12,562,205 10,744,130 (22.47) 10.44
-------------- -------------- -------------- ------ ------
Total loans and leases $ 81,601,963 $ 81,030,254 $ 75,177,321 2.86% 8.55%
============== ============== ============== ====== ======
</TABLE>
(1) Total of on-balance sheet loans and loans sold with servicing retained
exclusive of mortgages securitized in normal mortgage banking activities.
(2) Certain adjustments have been made to conform with current presentation.
(3) Annualized.
(4) Includes loans held for sale.
