<PAGE>
UNITED STATES
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 14, 1994
--------------
FIRST BANK SYSTEM, INC.
-----------------------
(Exact name of registrant as specified in its charter)
DELAWARE 1-6880 41-0255900
-------- ------ ----------
(State or other jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
601 SECOND AVENUE SOUTH, MINNEAPOLIS, MINNESOTA 55402
- ----------------------------------------------- -----
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 612-973-1111
------------
NOT APPLICABLE
--------------
(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events
------------
On April 14, 1994, First Bank System, Inc. (the "Company") released its
first quarter, 1994 earnings summary to the public. The Company is
hereby filing with the Securities and Exchange Commission a copy of its
press release dated April 14, 1994.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
------------------------------------------------------------------
c.) Exhibits
Exhibit 99.1 Press release of First Bank System, Inc. dated April
14, 1994.
INDEX TO EXHIBITS
Document Page Number
-------- -----------
99.1 Press release of First Bank System, Inc. dated April 14, 1994 3-16
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, thereunto duly authorized.
FIRST BANK SYSTEM, INC.
Date: April 20, 1994 By /s/ Susan E. Lester
-------------- -------------------
Susan E. Lester
Executive Vice President & Controller
-2-
<PAGE>
[FIRST BANK SYSTEM LOGO] EXHIBIT 99.1
------------
601 Second Avenue South Contact:
Minneapolis, MN 55402-4302 --------
Wendy L. Raway John R. Danielson
Media Relations Investor Relations
(612) 973-2429 (612) 973-2261
FIRST BANK SYSTEM REPORTS FIRST QUARTER 1994 EARNINGS
-----------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
1Q 1Q PERCENT
EARNINGS SUMMARY 1994 1993 CHANGE
- ------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net income (in millions) $ 98.5 $ 77.5 27.1
Primary earnings per common share 0.84 0.61 37.7
Dividends paid per common share 0.29 0.25 16.0
Book value per common share (period-end) 18.84 17.29 9.0
Return on average common equity (%) 18.8 14.7
Return on average assets (%) 1.59 1.25
- ------------------------------------------------------------------------
</TABLE>
MINNEAPOLIS, April 14, 1994 -- First Bank System, Inc. (NYSE: FBS) today
reported first quarter earnings of $98.5 million, or $0.84 per share, compared
with $77.5 million, or $0.61 per share, in the first quarter of 1993. Return on
average assets and return on average common equity in the first quarter of 1994
were 1.59 percent and 18.8 percent, respectively, compared with returns of 1.25
percent and 14.7 percent in the first quarter of 1993.
The strong results for the first quarter reflect loan and fee income growth,
tight expense control, continued improvement in credit quality and effective
capital management.
Included in the results for the first quarter of 1994 were increases in net
interest income on a taxable-equivalent basis of $6.8 million, or 2.4 percent,
and noninterest income of $10.6 million, or 7.5 percent, and a decrease in
noninterest expense of $4.2 million, or 1.6 percent. Noninterest income was
higher as a result of growth in fee revenues, primarily from the credit card and
trust businesses. The decrease in noninterest expense reflects cost savings
from the integration of
<PAGE>
First Bank System Reports First Quarter 1994 Results
April 14, 1994
Page 2
recent acquisitions. The efficiency ratio, or ratio of expenses to revenues, for
the first quarter of 1994 improved to 58.0 percent, from 61.4 percent for the
same quarter last year. The reduction in the provision for credit losses of
$14.1 million, or 37 percent, was driven by continued declines in net charge-
offs and in nonperforming assets.
Earnings per share in the first quarter of 1994 reflects the impact of the
repurchase of 4.0 million average shares. These shares were repurchased
beginning in October of 1993 in anticipation of their reissuance in connection
with the acquisition of Boulevard Bancorp, which resulted in the issuance of 6.2
million shares on March 25, 1994. Without the effect of the share repurchases
during the first quarter, return on average common equity would have been 17.8
percent.
Nonperforming assets dropped to $217.7 million at March 31, 1994, a decrease
of $8.3 million, or 3.7 percent, from December 31, 1993, and $156.7 million, or
41.9 percent, from March 31, 1993, despite the addition of $29.3 million in
nonperforming assets with the acquisition of Boulevard Bancorp. The ratio of
the allowance for credit losses to nonperforming loans continues to indicate
very strong reserve coverage, increasing to 293 percent, from 269 percent at the
end of 1993 and 186 percent at March 31, 1993.
First Bank System's Chairman, President and Chief Executive Officer, John F.
Grundhofer, said, "We are pleased to report the continuing trend of strong
quarterly operating results, reflecting higher fee income and lower operating
expenses. This quarter also marked our entry in the Chicago market with the
purchase of Boulevard Bancorp. We plan to convert Boulevard's systems in April,
which will allow us to begin selling First Bank products to consumers in the
Chicago area within a month of closing the transaction." Grundhofer added, "We
also are excited about the new First Bank System/Northwest Airlines WorldPerks
credit card program." On January 26, 1994, Northwest Airlines announced that it
had selected First Bank System to be its
<PAGE>
First Bank System Reports First Quarter 1994 Results
April 14, 1994
Page 3
bank credit card marketing partner. By the end of first quarter, First Bank
System had opened well over 100,000 WorldPerks customer accounts.
On March 25, 1994, First Bank System completed its previously announced
purchase of Boulevard Bancorp, Inc. of Chicago, a commercial bank holding
company with $1.6 billion in assets and $1.2 billion in deposits. The
transaction was accounted for as a purchase, and therefore, had no significant
effect on first quarter earnings.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------
INCOME STATEMENT HIGHLIGHTS
- ----------------------------------------------------------------------------
(Taxable-equivalent basis, $ in millions) 1Q 1Q PERCENT
1994 1993 CHANGE
-------------------------
<S> <C> <C> <C>
Net interest income $285.0 $278.2 2.4
Provision for credit losses 24.0 38.1 (37.0)
Noninterest income 151.8 141.2 7.5
Noninterest expense 253.3 257.5 (1.6)
----------------
Income before taxes 159.5 123.8 28.8
Taxable-equivalent adjustment 3.7 5.0 (26.0)
Income taxes 57.3 41.3 38.7
----------------
Net income $ 98.5 $ 77.5 27.1
================
Net interest margin (%) 5.19 5.07
Efficiency ratio (%) 58.0 61.4
- ----------------------------------------------------------------------------
</TABLE>
First quarter net interest income on a taxable-equivalent basis was $285
million, an increase of $6.8 million, or 2.4 percent, from the first quarter of
1993. The improvement in net interest income reflects increases in loans and
noninterest-bearing deposits. Average loans for the first quarter totaled $18.0
billion, or 8.1 percent higher than the total of $16.7 billion in the first
quarter of last year, reflecting growth in loans to financial institutions and
small business and middle market loans, as well as home equity and second
mortgage loans. Average noninterest bearing deposits increased $1.1 billion, or
21.3 percent, over the same period. Approximately one-half of the increase in
average loans and three-quarters of the increase in noninterest-bearing
<PAGE>
First Bank System Reports First Quarter 1994 Results
April 14, 1994
Page 4
deposits during the first quarter, as compared with the same period in 1993,
were attributable to cyclical activity in the Company's portfolio of secured
loans to mortgage banking firms and related escrow balances.
The net interest margin on a taxable-equivalent basis was 5.19 percent in the
first quarter of 1994, compared with 5.07 percent in the first quarter of 1993.
The 12 basis-point improvement was attributable primarily to a decrease in
funding costs.
First quarter net interest income on a taxable-equivalent basis decreased
$8.3 million, or 2.8 percent, from the fourth quarter of 1993, primarily the
result of lower average loans and noninterest-bearing deposits. Total average
loans decreased by $785 million from last quarter, reflecting a $1 billion
decline in the balances of loans to mortgage bankers and residential mortgage
loans held for sale. Partially offsetting this decrease were increases in
commercial loans, mainly in small business and middle marketing lending, and
home equity loans. The $1.1 billion, or 14.7 percent, decrease in the balance
of average noninterest-bearing deposits, this quarter compared to the fourth
quarter of 1993, was related in large part to the decrease in loans to finance
mortgage banking activities. Net interest margin in the first quarter of 1994
was 19 basis points higher than in the fourth quarter as a result of the effect
of fewer days in the quarter, as well as the decrease in lower margin loans to
mortgage bankers.
<PAGE>
First Bank System Reports First Quarter 1994 Results
April 14, 1994
Page 5
<TABLE>
<CAPTION>
- ---------------------------------------------------------------
NONINTEREST INCOME
- ---------------------------------------------------------------
($ in millions) 1Q 1Q PERCENT
1994 1993 CHANGE
------------------------
<S> <C> <C> <C>
Trust fees $ 38.5 $ 35.5 8.5
Credit card fees 36.0 28.5 26.3
Service charges 29.4 30.3 (3.0)
Insurance commissions 5.0 5.3 (5.7)
Trading account profits 2.7 2.6 3.8
Investment securities gains -- 0.3 (100.0)
Other 40.2 38.7 3.9
--------------
Total noninterest income $151.8 $141.2 7.5
==============
- -------------------------------------------------------------
</TABLE>
First quarter noninterest income was $151.8 million, an increase of $10.6
million, or 7.5 percent, from the same quarter of 1993. Trust fees and credit
card fees for the quarter increased $10.5 million, or 16.4 percent, from the
first quarter of 1993. Most of the increase occurred in credit card fees,
reflecting higher sales volume for Corporate Card, Procurement Card, and
merchant card processing. Trust fees for the quarter were up from the first
quarter of 1993 level as a result of increased corporate trust fee revenue.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
NONINTEREST EXPENSE
- -------------------------------------------------------------------------
($ in millions) 1Q 1Q PERCENT
1994 1993 CHANGE
--------------------------
<S> <C> <C> <C>
Salaries $ 94.2 $ 99.5 (5.3)
Employee benefits 23.7 24.8 (4.4)
Net occupancy 21.5 24.6 (12.6)
Furniture and equipment 19.1 17.2 11.0
FDIC insurance 11.5 11.8 (2.5)
Advertising 8.1 4.7 72.3
Amortization of goodwill and intangibles 8.0 7.5 6.7
Professional services 6.5 8.3 (21.7)
Other real estate -- (0.8) nm
Other 60.7 59.9 1.3
----------------
Total noninterest expense $253.3 $257.5 (1.6)
================
- -------------------------------------------------------------------------
</TABLE>
<PAGE>
First Bank System Reports First Quarter 1994 Results
April 14, 1994
Page 6
First quarter noninterest expense was lower by $4.2 million, or 1.6 percent,
than in the first quarter of 1993. The decrease in expenses reflects the
benefits of integrating recent acquisitions.
Total salaries and benefits expense for the first quarter decreased by $6.4
million, or 5.1 percent, from that of the first quarter of 1993. Average full-
time equivalent employees decreased by 7.2 percent, to 11,815 in the first
quarter of 1994, from 12,735 in the first quarter of 1993. As compared to the
first quarter of 1993, first quarter net occupancy and equipment expense
decreased by $1.2 million, or 2.9 percent. Advertising expense increased $3.4
million, or 72.3 percent, over the 1993 level, reflecting expanded marketing
efforts in the growing consumer asset businesses.
First quarter provision for credit losses was lower by $14.1 million than in
the first quarter of 1993. Commercial loan net charge-offs for the quarter were
lower by $17.7 million, or 78.0 percent, and consumer loan net charge-offs were
essentially unchanged. The lower provision and net charge-offs for the quarter
resulted from improved credit quality.
<TABLE>
<CAPTION>
- --------------------------------------------------------------
ALLOWANCE FOR CREDIT LOSSES
- --------------------------------------------------------------
($ in millions)
1Q 4Q 1Q
1994 1993 1993
------------------------
<S> <C> <C> <C>
Balance, beginning of period $423.2 $427.2 $448.0
Net charge-offs
Commercial 5.0 7.8 22.7
Consumer 20.6 23.2 20.1
------------------------
Total 25.6 31.0 42.8
Provision for credit losses 24.0 27.0 38.1
Asset acquisition additions 20.9 -- --
------------------------
Balance, end of period $442.5 $423.2 $443.3
========================
Net charge-offs to average loans (%) 0.58 0.65 1.04
Allowance for credit losses to
period-end loans (%) 2.42 2.25 2.62
- --------------------------------------------------------------
</TABLE>
<PAGE>
First Bank System Reports First Quarter 1994 Results
April 14, 1994
Page 7
The allowance for credit losses was $442.5 million at March 31, 1994, down
slightly from $443.3 million at March 31, 1993 and up from $423.2 million at
December 31, 1993. The increase from year-end includes the addition of $20.2
million of allowance from the Boulevard Bancorp acquisition. The ratio of
allowance for credit losses to nonperforming loans continues to indicate strong
reserve coverage, increasing - despite lower provisions - to 293 percent at the
end of the first quarter of 1994, compared with 269 percent at the end of 1993
and 186 percent at the end of the first quarter of 1993.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
ASSET QUALITY
- --------------------------------------------------------------------------------
($ in millions)
MAR 31 DEC 31 SEP 30 JUN 30 MAR 31
1994 1993 1993 1993 1993
-----------------------------------------
<S> <C> <C> <C> <C> <C>
Nonperforming loans
Commercial and financial $ 33.0 $ 43.1 $ 52.2 $ 66.8 $ 74.3
HLTs 16.1 20.1 27.4 67.2 56.7
Commercial real estate 46.4 39.1 41.6 55.2 68.3
Consumer 55.3 55.3 62.3 37.5 38.6
-----------------------------------------
Total 150.8 157.6 183.5 226.7 237.9
Other real estate 66.3 67.4 81.1 99.4 133.1
Other nonperforming assets 0.6 1.0 2.2 2.4 3.4
-----------------------------------------
Total nonperforming assets $217.7 $226.0 $266.8 $328.5 $374.4
=========================================
Accruing loans 90 days past due $ 26.7 $ 31.2 $ 32.1 $ 25.1 $ 28.4
=========================================
Allowance to nonperforming loans (%) 293 269 233 192 186
Allowance to nonperforming assets (%) 203 187 160 132 118
Nonperforming assets to loans
plus ORE (%) 1.19 1.20 1.43 1.82 2.20
- --------------------------------------------------------------------------------
</TABLE>
Nonperforming assets at March 31, 1994 totaled $217.7 million, down by $8.3
million, or 3.7 percent, from the end of 1993, and by $156.7 million, or 41.9
percent, from the total at March 31, 1993. The ratio of nonperforming assets to
loans and other real estate improved to 1.19 percent at March 31, 1994, from
1.20 percent at December 31, 1993 and 2.20 percent at March 31, 1993.
<PAGE>
First Bank System Reports First Quarter 1994 Results
April 14, 1994
Page 8
The acquisition of Boulevard Bancorp added $22.4 million to nonperforming loans
and $6.9 million to other real estate in the first quarter of 1994.
Significant decreases in the balance of nonperforming assets at March 31,
1994, as compared with the balance at March 31, 1993, occurred in the categories
of nonperforming HLT and commercial and financial loans and other real estate,
primarily the result of loan repayments and property sales. The increase in
nonperforming consumer loans over this period resulted from the purchase in the
third quarter of 1993 of $24 million of delinquent residential mortgages in
connection with a sale of mortgage loan servicing rights. These loans are
supported by government-sponsored mortgage insurance.
At March 31, 1994, the common-equity-to-assets ratio was 8.2 percent, higher
than the ratios of 7.5 percent at the end of 1993 and 7.7 percent at March 31,
1993, and above the regional bank peer group average of 7.2 percent at December
31, 1993. Shareholders' equity-to-assets at March 31, 1994 was 8.6 percent,
compared with 8.5 percent at December 31, 1993, 9.2 percent at March 31, 1993,
and a peer group average of 7.8 percent at December 31, 1993.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
CAPITAL POSITION
- --------------------------------------------------------------------------------
(PERCENT)
MAR 31 DEC 31 SEP 30 JUN 30 MAR 31
1994 1993 1993 1993 1993
--------------------------------------
<S> <C> <C> <C> <C> <C>
Common equity to assets 8.2 7.5 7.7 7.6 7.7
Tangible common equity to assets 7.2 6.9 7.1 7.0 7.1
Total shareholders' equity to assets 8.6 8.5 8.8 9.1 9.2
Tier 1 capital ratio 8.4 9.2 9.5 9.5 9.8
Total capital ratio 12.3 13.3 13.9 13.0 12.9
Leverage ratio 7.6 7.6 8.0 8.1 8.2
- --------------------------------------------------------------------------------
</TABLE>
During 1993, First Bank System announced plans to repurchase approximately
$275 million of its common stock, including all of the shares issued in the
acquisition of Boulevard Bancorp. At March 31, 1994, $202 million in common
stock had been repurchased.
<PAGE>
First Bank System Reports First Quarter 1994 Results
April 14, 1994
Page 9
On January 19, 1994, the First Bank System Board of Directors authorized the
redemption of the entire outstanding amount of two preferred stock series, $89
million of the Preferred Series 1989A, and $70.3 million of the Preferred Series
1989B. This redemption is reflected in the March 31, 1994 capital ratios.
First Bank System is a regional bank holding company headquartered in
Minneapolis. The Company provides complete financial services to individuals
and institutions through 13 banks and other financial companies with more than
200 offices, primarily in Minnesota, Colorado, Montana, North Dakota, South
Dakota, Wisconsin and Illinois.
###
<PAGE>
First Bank System, Inc. and Subsidiaries
Consolidated Statement of Income
<TABLE>
<CAPTION>
Three Months Ended
------------------------------------------------------------
(In Millions, Except Per-Share Data) March 31 December 31 September 30 June 30 March 31
(Unaudited) 1994 1993 1993 1993 1993
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Interest Income
Loans $338.2 $352.6 $353.9 $348.6 $343.5
Investment securities:
Taxable 46.4 46.9 52.9 58.4 60.0
Exempt from federal income taxes 3.0 4.7 3.2 3.3 3.4
Trading account 0.6 1.1 1.3 1.2 1.0
Federal funds sold and resale agreements 4.3 5.7 3.5 5.9 8.6
Deposits with banks -- -- 0.1 -- 2.0
- ---------------------------------------------------------------------------------------------------------------------------
Total interest income 392.5 411.0 414.9 417.4 418.5
Interest Expense
Deposits 85.1 94.0 102.1 107.0 120.6
Federal funds purchased and repurchase agreements 9.1 7.6 9.0 7.5 7.7
Other short-term funds borrowed 3.6 4.9 5.1 5.1 3.9
Long-term debt 13.4 14.9 13.4 13.0 13.1
- ---------------------------------------------------------------------------------------------------------------------------
Total interest expense 111.2 121.4 129.6 132.6 145.3
- ---------------------------------------------------------------------------------------------------------------------------
Net interest income 281.3 289.6 285.3 284.8 273.2
Provision for credit losses 24.0 27.0 27.0 33.1 38.1
- ---------------------------------------------------------------------------------------------------------------------------
Net interest income after provision for credit losses 257.3 262.6 258.3 251.7 235.1
Noninterest Income
Trust fees 38.5 37.5 36.6 36.5 35.5
Credit card fees 36.0 37.5 36.6 34.5 28.5
Service charges on deposit accounts 29.4 28.4 28.6 28.0 30.3
Insurance commissions 5.0 5.3 5.8 4.5 5.3
Trading account profits and commissions 2.7 2.2 2.4 2.9 2.6
Investment securities gains -- -- -- -- 0.3
Other 40.2 35.0 32.0 34.1 38.7
------------------------------------------------------------
Total noninterest income 151.8 145.9 142.0 140.5 141.2
Noninterest Expense
Salaries 94.2 95.0 97.3 97.3 99.5
Employee benefits 23.7 19.6 20.0 21.9 24.8
Net occupancy 21.5 22.8 22.8 23.2 24.6
Furniture and equipment 19.1 19.2 17.8 18.5 17.2
FDIC insurance 11.5 11.5 11.4 11.7 11.8
Advertising 8.1 4.7 6.0 5.1 4.7
Amortization of goodwill and other intangible assets 8.0 7.7 7.7 7.7 7.5
Other personnel costs 7.7 8.5 7.2 6.6 5.2
Professional services 6.5 10.7 9.1 8.6 8.3
Data processing 3.5 4.7 5.8 8.4 8.1
Other real estate -- (0.1) 2.2 0.9 (0.8)
Merger, integration and restructuring -- -- -- 72.2 --
Other 49.5 51.0 48.4 49.9 46.6
- ---------------------------------------------------------------------------------------------------------------------------
Total noninterest expense 253.3 255.3 255.7 332.0 257.5
- ---------------------------------------------------------------------------------------------------------------------------
Income before income taxes 155.8 153.2 144.6 60.2 118.8
Applicable income taxes 57.3 57.3 53.5 26.7 41.3
- ---------------------------------------------------------------------------------------------------------------------------
Net income 98.5 95.9 91.1 33.5 77.5
===========================================================================================================================
Net income applicable to common equity $93.0 $90.4 $83.7 $26.1 $70.0
===========================================================================================================================
Earnings Per Common Share
Primary average common and common equivalent shares 110,771,619 111,278,886 113,721,471 113,392,157 113,982,746
Primary net income $0.84 $0.81 $0.74 $0.23 $0.61
===========================================================================================================================
Fully diluted average common and common equivalent shares 114,546,109 114,983,271 117,818,585 113,471,564 118,084,155
Fully diluted net income $0.83 $0.80 $0.73 $0.23 $0.61
===========================================================================================================================
</TABLE>
<PAGE>
First Bank System, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
(In Millions) March 31 December 31 September 30 June 30 March 31
(Unaudited, Except December 31, 1993) 1994 1993 1993 1993 1993
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Cash and due from banks $1,932 $1,682 $1,773 $1,713 $1,477
Federal funds sold 131 1,032 47 201 849
Securities purchased under agreements to resell 268 306 362 257 212
Interest-bearing deposits with banks -- -- 1 -- 2
Trading account securities 60 55 140 102 111
Available-for-sale securities 4,334 3,319 72 216 145
Investment securities (market value: 9/30/93-$3,870;
6/30/93-$4,013; 3/31/93-$4,246) -- -- 3,794 3,937 4,163
Loans 18,256 18,779 18,568 17,964 16,918
Less allowance for credit losses 442 423 427 435 443
- -------------------------------------------------------------------------------------------------------------------
Net loans 17,814 18,356 18,141 17,529 16,475
Bank premises and equipment 387 382 393 381 406
Interest receivable 141 129 143 141 147
Customers' liability on acceptances 143 186 167 133 143
Other assets 1,299 938 908 970 1,023
- -------------------------------------------------------------------------------------------------------------------
Total assets $26,509 $26,385 $25,941 $25,580 $25,153
===================================================================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing $ 6,808 $ 7,489 $ 6,882 $ 6,589 $ 5,593
Interest-bearing 13,960 13,542 13,584 13,777 14,467
- -------------------------------------------------------------------------------------------------------------------
Total deposits 20,768 21,031 20,466 20,366 20,060
Federal funds purchased 414 553 602 692 564
Securities sold under agreements to repurchase 640 369 373 290 336
Other short-term funds borrowed 365 412 332 361 246
Long-term debt 1,090 1,015 1,030 857 808
Acceptances outstanding 143 186 167 133 143
Other liabilities 800 574 695 552 676
- -------------------------------------------------------------------------------------------------------------------
Total liabilities 24,220 24,140 23,665 23,251 22,833
Shareholders' Equity:
Preferred stock 106 266 269 379 379
Common stock 145 144 144 143 142
Capital surplus 731 676 676 676 666
Retained earnings 1,320 1,328 1,236 1,182 1,184
Treasury stock (13) (169) (49) (51) (51)
- -------------------------------------------------------------------------------------------------------------------
Total shareholders' equity 2,289 2,245 2,276 2,329 2,320
- -------------------------------------------------------------------------------------------------------------------
Total liabilities and shareholders' equity $26,509 $26,385 $25,941 $25,580 $25,153
===================================================================================================================
</TABLE>
<PAGE>
First Bank System, Inc. and Subsidiaries
CONSOLIDATED QUARTERLY AVERAGE BALANCE SHEET
<TABLE>
<CAPTION>
March 31 December 31 September 30 June 30 March 31
(In Millions, Unaudited) 1994 1993 1993 1993 1993
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Securities:
U.S. Treasury $1,664 $1,664 $1,786 $1,849 $1,820
Mortgage-backed securities 1,348 1,356 1,459 1,657 1,473
State & political subdivisions 183 189 197 195 186
U.S. agencies and other 328 311 450 512 611
- -------------------------------------------------------------------------------------------------------
Total securities 3,523 3,520 3,892 4,213 4,090
Unrealized gain on available-for-sale securities 45 -- -- -- --
- -------------------------------------------------------------------------------------------------------
Net securities 3,568 3,520 3,892 4,213 4,090
Trading account securities 64 125 139 108 97
Deposits with banks -- -- 1 -- 229
Federal funds sold and
resale agreements 547 713 402 758 1,103
Loans:
Commercial:
Commercial 6,445 6,222 6,039 6,038 5,974
Financial institutions 1,715 2,131 1,893 1,191 906
Real Estate:
Commercial mortgage 1,504 1,501 1,495 1,535 1,509
Construction 230 205 199 199 224
- -------------------------------------------------------------------------------------------------------
Total commercial 9,894 10,059 9,626 8,963 8,613
Consumer:
Residential mortgage 2,358 2,463 2,515 2,567 2,592
Residential mortgage held for sale 643 1,247 1,023 878 639
Credit card 1,736 1,707 1,763 1,727 1,738
Other 3,403 3,343 3,261 3,157 3,103
- -------------------------------------------------------------------------------------------------------
Total consumer 8,140 8,760 8,562 8,329 8,072
- -------------------------------------------------------------------------------------------------------
Total loans 18,034 18,819 18,188 17,292 16,685
Allowance for credit losses 438 437 442 448 460
- -------------------------------------------------------------------------------------------------------
Net loans 17,596 18,382 17,746 16,844 16,225
Other earning assets 110 93 88 84 63
- -------------------------------------------------------------------------------------------------------
Total earning assets* 22,278 23,270 22,710 22,455 22,267
Cash and due from banks 1,646 1,889 1,710 1,701 1,570
Other assets 1,532 1,544 1,576 1,639 1,676
- -------------------------------------------------------------------------------------------------------
Total Assets $25,063 $26,266 $25,554 $25,347 $25,053
=======================================================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits $6,401 $7,505 $6,585 $6,272 $5,277
Interest-bearing deposits:
Interest checking 2,571 2,517 2,438 2,428 2,410
Money market accounts 3,978 3,948 3,949 3,874 3,944
Other savings accounts 1,382 1,357 1,365 1,447 1,479
Savings certificates 4,259 4,488 4,744 5,049 5,567
Certificates over $100,000 1,013 1,115 1,167 1,214 1,239
- -------------------------------------------------------------------------------------------------------
Total interest-bearing deposits 13,203 13,425 13,663 14,012 14,639
Short-term borrowings 1,399 1,270 1,367 1,192 1,206
Long-term debt 1,056 1,072 916 847 817
- -------------------------------------------------------------------------------------------------------
Total interest-bearing liabilities 15,658 15,767 15,946 16,051 16,662
Other liabilities 784 769 682 696 799
Preferred equity 209 268 367 379 379
Common equity 2,011 1,957 1,974 1,949 1,936
- -------------------------------------------------------------------------------------------------------
Total Liabilities and
Shareholders' Equity $25,063 $26,266 $25,554 $25,347 $25,053
=======================================================================================================
</TABLE>
* Before deducting the allowance for credit losses and excluding the unrealized
gain on available-for-sale securities.
<PAGE>
First Bank System, Inc. and Subsidiaries
CONSOLIDATED DAILY AVERAGE BALANCE SHEET AND RELATED YIELDS AND RATES
<TABLE>
<CAPTION>
1994 1993 % Change
--------------------------- ----------------------------
Interest Interest Average
Yields Yields Balance
For the Three Months Ended March 31 and and Increase
(In Millions, Unaudited) Balance Interest Rates Balance Interest Rates (Decrease)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Securities:
U.S. Treasury $1,664 $21.6 5.26 $1,820 $26.5 5.91 (8.6)%
Mortgage-backed securities 1,348 19.2 5.78 1,473 25.0 6.88 (8.5)
State & political subdivisions 183 4.9 10.86 186 5.0 10.90 (1.6)
U.S. agencies and other 328 4.0 4.95 611 8.0 5.31 (46.3)
- ------------------------------------------------------------------------- --------------------
Total securities 3,523 49.7 5.72 4,090 64.5 6.40 (13.9)
Unrealized gain on available-for-sale securities 45 --
----- -----
Net securities 3,568 4,090
Trading account securities 64 0.6 3.80 97 1.1 4.60 (34.0)
Deposits with banks -- -- 229 2.0 3.54 (100.0)
Federal funds sold and resale agreements 547 4.3 3.19 1,103 8.4 3.09 (50.4)
Loans:
Commercial:
Commercial 6,445 110.9 6.98 5,974 104.4 7.09 7.9
Financial institutions 1,715 11.7 2.77 906 7.1 3.18 89.3
Real Estate:
Commercial mortgage 1,504 30.7 8.28 1,509 31.4 8.44 (0.3)
Construction 230 4.1 7.23 224 4.4 7.97 2.7
--------------- ---------------
Total commercial 9,894 157.4 6.45 8,613 147.3 6.94 14.9
Consumer:
Residential mortgage 2,358 43.6 7.50 2,592 53.7 8.40 (9.0)
Residential mortgage held for sale 643 10.5 6.62 639 12.1 7.68 0.6
Credit card 1,736 56.2 13.13 1,738 60.9 14.21 (0.1)
Other 3,403 72.7 8.66 3,103 72.8 9.51 9.7
--------------- ---------------
Total consumer 8,140 183.0 9.12 8,072 199.5 10.02 0.8
--------------- ---------------
Total loans 18,034 340.4 7.66 16,685 346.8 8.43 8.1
Allowance for credit losses 438 460 (4.8)
- --------------------------------------------------------------- ------
Net loans 17,596 16,225 8.4
Other earning assets 110 1.2 4.42 63 0.7 4.51 74.6
- ------------------------------------------------------------------------ ----------------
Total earning assets* 22,278 396.2 7.21 22,267 423.5 7.71 --
Cash and due from banks 1,646 1,570 4.8
Other assets 1,532 1,676 (8.6)
- --------------------------------------------------------------- ----------
Total assets $25,063 $25,053 --
=============================================================== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits $6,401 $5,277 21.3 %
Interest-bearing deposits:
Interest checking 2,571 8.7 1.37 2,410 13.9 2.34 6.7
Money market accounts 3,978 24.2 2.47 3,944 24.0 2.47 0.9
Other savings accounts 1,382 6.4 1.88 1,479 8.0 2.19 (6.6)
Savings certificates 4,259 30.8 2.93 5,567 56.9 4.15 (23.5)
Certificates over $100,000 1,013 15.0 6.01 1,239 17.8 5.83 (18.2)
- ------------------------------------------------------------------------- --------------------
Total interest-bearing deposits 13,203 85.1 2.61 14,639 120.6 3.34 (9.8)
Short-term borrowings 1,399 12.7 3.68 1,206 11.6 3.90 16.0
Long-term debt 1,056 13.4 5.15 817 13.1 6.50 29.3
- ------------------------------------------------------------------------- --------------------
Total interest-bearing liabilities 15,658 111.2 2.88 16,662 145.3 3.54 (6.0)
Other liabilities 784 799 (1.9)
Preferred equity 209 379 (44.9)
Common equity 2,011 1,936 3.9
- --------------------------------------------------------------- ---------
Total liabilities and shareholders' equity $25,063 $25,053 --
=============================================================== =========
Net interest income $285.0 $278.2
========================================================================= ======
Gross interest margin 4.33% 4.17%
======= ========
Gross interest margin without taxable-equivalent increments 4.27 4.08
======= ========
Net interest margin 5.19 5.07
======= ========
Net interest margin without taxable-equivalent increments 5.12 4.98
======= ========
</TABLE>
Interest and rates are presented on a fully taxable-equivalent basis under a tax
rate of 35 percent.
Interest income and rates on loans include loan fees. Nonaccrual loans are
included in average loan balances.
* Before deducting the allowance for credit losses and excluding the unrealized
gain on available-for-sale securities.
<PAGE>
First Bank System, Inc. and Subsidiaries
SUPPLEMENTAL FINANCIAL DATA
(Dollars in Millions, Except Per Share Data)
<TABLE>
<CAPTION>
March 31 December 31 September 30 June 30 March 31
1994 1993 1993 1993 1993
----------- ----------- ------------ ---------- -----------
<S> <C> <C> <C> <C> <C>
Loan Portfolio:
Commercial and Financial $8,083 $8,180 $8,057 $7,437 $6,905
HLTs 191 183 134 209 230
Commercial Real Estate 1,861 1,726 1,731 1,699 1,741
Residential Mortgage Held for Sale 355 1,088 1,106 1,068 624
Consumer 7,766 7,602 7,540 7,551 7,418
----------- ----------- ------------ ---------- -----------
Total Loans $18,256 $18,779 $18,568 $17,964 $16,918
Ending Common Shares Outstanding 115,901,974 109,401,664 113,233,763 113,054,767 112,242,896
Book Value per Common Share $18.84 $18.09 $17.72 $17.25 $17.29
Intangibles:
Goodwill $309 $168 $170 $173 $174
Purchased Mortgage Servicing Rights 48 53 49 71 72
Other Intangibles 131 103 104 110 113
----------- ----------- ------------ ---------- -----------
Total Intangibles $488 $324 $323 $354 $359
Excess Servicing Fee Receivable $16 $17 $19 $24 $26
Three Months Ended
-------------------------------------------------------------------
March 31 December 31 September 30 June 30 March 31
1994 1993 1993 1993 1993
----------- ----------- ------------ ---------- -----------
Net Interest Income* $285.0 $293.3 $289.6 $289.5 $278.2
Net Interest Margin* 5.19% 5.00% 5.06% 5.17% 5.07%
Efficiency Ratio 58.0% 58.1% 59.2% 60.4%** 61.4%
Interest Yield on Average Loans 7.66% 7.48% 7.78% 8.16% 8.43%
Rate Paid on Average Interest Bearing Liabilities 2.88% 3.05% 3.22% 3.31% 3.54%
Return on Average Assets 1.59% 1.45% 1.41% 1.32%** 1.25%
Return on Average Common Equity 18.8% 18.3% 16.8% 15.7%** 14.7%
Preferred Dividends $5.5 $5.5 $7.4 $7.4 $7.5
Gross Charge-offs $48.1 $46.2 $57.7 $59.9 $61.2
Gross Recoveries $22.5 $15.2 $23.1 $18.3 $18.4
Average Full-Time Equivalent Employees 11,815 11,981 12,110 12,375 12,735
</TABLE>
* On a taxable-equivalent basis
** Excluding merger-related charges
