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) July 14,1994
FIRST OF AMERICA BANK CORPORATION
(Exact name of Registrant as specified in its Charter)
Michigan 1-10534 38-1971791
(State or other jurisdiction (Commission (I.R.S. Employer
of Incorporation or File Number) Identification No.)
Organization)
211 S. Rose, Kalamazoo, Michigan 49007
Address of principal Executive Offices)
Registrant's telephone number, including area code 616-376-9000
<PAGE>
Item 5. Other Events
(1) On June 14, 1994, First of America entered into a definitive
agreement to acquire F&C Bancshares, Inc., a $406 million in
assets savings and loan holding company based in Port
Charlotte, Florida. It is anticipated F&C Bancshares'
3,242,209 common shares will be exchanged tax-free for
shares of First of America Common Stock. The exchange ratio
will equal $23.25 divided by the average closing price of
First of America Common Stock during the last 15 trading
days immediately prior to, but not including, the third
business day before the completion of the transaction.
However, the exchange ratio will not exceed .6436 and will
not be less than .5519. On the basis of current market
price of First of America Common Stock, the transaction has
an indicated value of approximately $72 million. First of
America intends to account for the acquisition as a pooling
of interests. The acquisition, subject to approval by F&C
Bancshares' shareholders and regulatory authorities, is
currently expected to be completed by the end of 1994, and
will include the merger of F&C Bancshares' subsidiary, First
Federal Savings Bank of Charlotte County, into First of
America Bank - Florida, F.S.B. Concurrently with the
execution of the definitive agreement, First of America and
F&C Bancshares executed a Warrant Agreement pursuant to
which F&C Bancshares issued a Warrant to First of America
entitling First of America to purchase up to 648,400 shares
of F&C Bancshares common stock upon the occurence of certain
events set forth in the Warrant Agreement.
Effective on June 28, 1994, First of America entered into a
definitive agreement to acquire Presidential Holding
Company, a $224 million in assets savings and loan holding
company based in Sarasota, Florida. It is anticipated
Presidential's 716,188 common shares will be exchanged tax-
free for shares of First of America Common Stock. The
exchange ratio will equal $33.25 divided by the average
closing price of First of America Common Stock during the
last 15 trading days immediately prior to, but not
including, the third business day before the completion of
the transaction. However, the exchange ratio will not
exceed .9837 and will not be less than .8735. On the basis
of current market price of First of America Common Stock,
the transaction has an indicated value of $24 million.
First of America intends to account for the acquisition as a
pooling of interests. The acquisition, subject to approval
by regulatory authorities, is currently expected to be
completed in the fourth quarter 1994 or first quarter 1995,
with the merger of Presidential's subsidiary, Presidential
Bank, F.S.B., into First of America Bank - Florida, F.S.B.
(2) On July 14, 1994, First of America Bank Corporation ("First
of America") issued a news release announcing its earnings
and related financial information for the second quarter of
1994. The text of the news release and the financial
information released with it follow.
<PAGE>
PRESS RELEASE
FIRST OF AMERICA BANK CORP. REPORTS 2ND QUARTER RESULTS;
2ND QTR EARNINGS PER SHARE $.88; AND
YTD NET INCOME DOWN 5.7% WITH RETURN ON ASSETS AT 1.04%
KALAMAZOO, Mich., July 14, 1994 -- First of America Bank
Corporation (NYSE: FOA) today reported second quarter net income
of $53.2 million, or $.88 per share, a decrease of 10.8 percent
from net income of $59.6 million, or $1.00 per share, reported
for the second quarter of 1993. Year-to-date, 1994 net income
was $111.5 million, or $1.86 per share, compared with $118.2
million, or $1.98 per share, for the same 1993 period.
Daniel R. Smith, chairman and chief executive officer, First of
America Bank Corporation, stated, "Our second quarter results
were obviously below our expectations. A reduced net interest
margin and lower gains on the sales of loans and securities
contributed to a reduction in net income when compared with last
year. Additionally, unsettled financial markets lowered revenue
in several areas. Mortgage banking revenues declined along with
the drop in mortgage refinancing activity and mutual fund sales
have flattened. These revenue shortfalls occurred while we were
taking deliberate steps to expand these lines of business. We
planned our added investment in these businesses because we
believe that they are important to our long term earnings
potential and growth in shareholder value.
"There is good news to report," Smith continued. "A large
portion of our commercial loans, residential mortgages and credit
cards are variable rate loans, and as they continue to reprice
over the next few weeks and months, revenues will rise. Our
asset quality, always high, has improved even more, and loan
growth this quarter was stronger than it has been in several
years."
Smith said, "This quarter also included our move into Florida --
an exciting development in the history of our company and the
opportunity to do business in a rapidly growing area of the
country. We have operated our Florida bank now for two and a
half months and are on target with our plans to convert their
operations to our systems this month. By year-end, we should
complete two pending acquisitions which will more than double the
size of our presence there. The combined impact of our
acquisitions in Florida and Illinois this quarter lowered
earnings per share by $.03.
"This quarter's results should be kept in perspective,"
concluded Smith. "Our company is producing revenue growth --
just not as fast as we had hoped. We will continue to scrutinize
planned expenses to make sure that they add more immediate
benefit. Both for the remainder of 1994 and the long term, the
outlook for our company remains positive."
Return on average assets was 0.96 percent for the quarter,
compared with 1.17 percent in 1993, and for the year-to-date
period, it was 1.04 percent versus 1.18 percent last year.
Return on average equity was 13.92 percent for the second quarter
of 1994 and 14.69 percent for the six-month period, compared with
17.16 percent and 17.35 percent for the respective 1993 periods.
Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin
Net interest income was $234.8 million for the second quarter, an
increase of 3.1 percent over last year's $227.7 million. Year-
to-date, net interest income increased 3.0 percent to $461.8
million versus $448.2 million in 1993, as a result of a higher
level of earning assets. Total loan growth was 9.6 percent, and
excluding acquisitions during the last twelve months, it was 8.2
percent. During the second quarter of 1994 excluding
acquisitions, residential mortgages grew 10.4 percent,
annualized, as variable rate loans were added to the portfolio.
Consumer loans were up 30.5 percent, annualized, for the quarter
and 22.7 percent for the year. Commercial loans grew 11.9
percent, annualized, for the quarter.
The net interest margin for the second quarter was 4.65 percent
down from 4.92 percent in 1993. For the six-month period, the
net interest margin was 4.73 percent compared with 4.92 percent a
year ago. Factors compressing the margin were the repricing of a
significant portion of the fixed rate credit card portfolio,
growth in other consumer loans at aggressive pricing levels and
the run-up in short term rates since March. In addition, the
thrift deposits added in Illinois and Florida this year lowered
the second quarter net interest margin by 7 basis points compared
with a year ago and the year-to-date margin by 4 basis points.
Non-interest Income
Non-interest Income
Non-interest income was up only slightly for the quarter and 3.7
percent for the six-month period. Both gains on the sale of
securities and gains on the sale of residential mortgages were
lower in 1994, while trust and financial services income,
mortgage servicing income and credit card fees continued to grow.
Traditional trust fees were up 8.0 percent for the quarter and
7.4 percent for the six-month period. Financial service fees
from cash management, brokerage and investment management were
$5.3 million in the second quarter of 1994 versus $5.4 million a
year ago; for the six-month period they increased 6.5 percent to
$10.8 million in 1994 compared with $10.1 million last year.
Income from mortgage banking activities was affected by the
decreased refinancing activity, which more than offset the
continued growth in the servicing portfolio. Mortgage servicing
income increased to $2.4 million for the quarter, up 40.4 percent
from a year ago, and for the six-month period, was $4.5 million,
up 27.6 percent from last year. Residential mortgage originations
during the second quarter of 1994 were $598 million versus $756
million a year ago, while gains on the sale of such loans were
$1.9 million compared with $5.8 million. Year-to-date, the
impact of gains on the sale of loans was $0.09 per share, down
from $0.13 per share in 1993.
Credit card fees increased, following the growth of the revolving
loan portfolio. The fees, totaling $10.2 million in the second
quarter of 1994 and $19.7 million in the six-month period, were
up 9.1 percent and 10.2 percent, respectively.
Gains on the sale of securities were $1.2 million in the second
quarter, or $0.01 per share, compared with $2.5 million, or $0.03
per share, a year ago. For the year-to-date period, the gains
were $0.09 per share versus $0.11 per share last year.
Non-interest expense
Non-interest expense
Total non-interest expense increased 7.0 percent for the quarter
and 6.8 percent for the year-to-date period, as a result of
acquisitions, other expansion initiatives and developmental
costs. Second quarter's increase of $13.3 million over last year
included $5.7 million in costs and intangible amortization from
the added operations of the Florida bank, LGF Bancorp, and
Citizens Federal branches and $3.9 million from business line
development and other expansion initiatives. Excluding these
costs, non-interest expense for the quarter increased 2.0
percent. As a percent of average assets, annualized, non-
interest expense was 3.69 percent for the second quarter of 1994
versus 3.75 percent a year ago and was level at 3.76 percent for
the year-to-date periods for both years.
The efficiency ratio for the second quarter was 66.23 percent in
1994 and 63.19 percent in 1993, as a result of the higher non-
interest expense and the lower net interest margin. For the
year-to-date periods, the efficiency ratio was 65.22 percent in
1994 and 62.76 percent in 1993. Year-to-date, the 246 basis
point increase in the efficiency ratio was due in part to the net
interest margin deterioration (194 basis points) and lower gains
on the sales of securities and loans (53 basis points).
Asset Quality
Asset Quality
Asset quality, previously at a strong level, improved even
further with non-performing assets at 0.73 percent of total
assets compared with 0.85 percent last year. Net charge-offs as
a percent of average loans also decreased to 0.41 percent for the
second quarter versus 0.47 percent a year ago. The allowance
coverage of non-performing loans increased to 163 percent
compared with 152 percent last year. The provision for loan
losses was $2.5 million higher in the second quarter of 1994
primarily due to loan growth.
Outlook
Outlook
Thomas W. Lambert, executive vice president and chief financial
officer, commented, "We are especially pleased that loan growth
seemed to strengthen progressively during the last quarter. With
continued loan growth and the existing higher rate environment,
the net interest margin should improve over the rest of the year.
Revenue growth should outpace expense growth by a wider margin as
well. Last year the company earned $4.14 per share and if
current trends continue, we believe that we will be able to
reach, or perhaps slightly exceed, that level of earnings for
1994."
First of America Bank Corporation, headquartered in Kalamazoo,
Michigan, is one of the largest bank holding companies in the
Midwest with assets of over $23 billion. First of America has
611 offices in Michigan, Illinois, Indiana and Florida that serve
over 325 communities. The banks engage in commercial banking,
retail banking and mortgage banking, and provide trust and other
financial services. Based on net income, profitability and size
of franchise, First of America is ranked among the top 35 banking
companies in the United States.
<PAGE>
<TABLE>
<CAPTION>
FIRST OF AMERICA BANK CORPORATION
Financial Highlights
Three Months Ended June 30,
---------------------------
($ in thousands, except per 1994 1993 % Change
share data) ------- ------- ---------
<S> <C> <C> <C>
NET INCOME 53,204 59,622 (10.8)
EARNINGS PER SHARE
Primary 0.88 1.01 (12.9)
Fully Diluted 0.88 1.00 (12.0)
PROFITABILITY RATIOS
Net interest margin (FTE) 4.65 4.92
Return on average assets 0.96 1.17
Return on average total
equity 13.92 17.16
Efficiency Ratio 66.23 63.19
Burden Ratio 2.43 2.39
<CAPTION>
Six Months Ended June 30,
---------------------------
1994 1993 % Change
------- ------- ---------
<S> <C> <C> <C>
NET INCOME 111,524 118,220 (5.7)
EARNINGS PER SHARE
Primary 1.86 2.00 (7.0)
Fully Diluted 1.86 1.98 (6.1)
PROFITABILITY RATIOS
Net interest margin (FTE) 4.73 4.92
Return on average assets 1.04 1.18
Return on average total
equity 14.69 17.35
Efficiency Ratio 65.22 62.76
Burden Ratio 2.39 2.35
<CAPTION>
Twelve Months Ended June 30,
------------------------------------
Ongoing
Operations
1994 1993 1993 % Change
------- ------- --------- -------
<S> <C> <C> <C> <C>
NET INCOME 240,689 211,833 237,724 1.2
EARNINGS PER SHARE
Primary 4.05 3.60 4.05 --
Fully Diluted 4.02 3.55 3.97 1.3
PROFITABILITY RATIOS
Net interest margin (FTE) 4.77 4.96 4.96
Return on average assets 1.13 1.06 1.19
Return on average total
equity 16.14 15.70 17.33
Efficiency Ratio 63.95 64.54 62.38
Burden Ratio 2.32 2.47 2.34
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FIRST OF AMERICA BANK CORPORATION
Financial Highlights
At June 30,
--------------------
RISK BASED CAPITAL RATIOS 1994 1993
--------- ---------
<S> <C> <C>
Tier I Capital Ratio 8.49 9.40
Total Capital Ratio 10.77 11.90
At June 30,
--------------------
NON-PERFORMING ASSETS 1994 1993
--------- ---------
Non-accrual loans 116,103 107,576
Restructured loans 9,686 12,037
Other real estate owned 42,467 53,950
Total non-performing assets --------- ---------
Total non-performing assets 168,256 173,563
========= =========
90 days past due loans 10,763 36,528
Non-performing assets to loans
plus OREO 1.10 1.25
Non-performing assets as a
% of total assets 0.73 0.85
At June 30,
--------------------
ASSET QUALITY RATIOS 1994 1993
--------- ---------
Allowance to total loans 1.34 1.31
Coverage of non-performing loans 162.55 151.93
Coverage of non-performing assets 121.52 104.70
At June 30,
--------------------
ALLOWANCE FOR LOAN LOSSES 1994 1993
--------- ---------
Year-to-Date
Balance, beginning of period 188,664 176,793
Operating provision 43,109 43,802
Net charge-offs (29,502) (39,119)
Allowance of purchased/(sold) banks 2,194 253
--------- ---------
Balance, June 30 204,465 181,729
========= =========
Annualized net charge-offs
to average loans 0.41 0.58
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FIRST OF AMERICA BANK CORPORATION
Financial Highlights
Consolidated Statements of Earnings
Three Months Ended June 30, Six
Months
Ended
June
30,
----------------------------------- -----------------------------------
($ in thousands, except per share 1994 1993 % Change 1994 1993 %
Change
data) ----------- ----------- --------- ----------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
Total Interest Income 387,664 382,256 1.4 750,104 759,354
(1.2)
Total Interest Expense 152,874 154,561 (1.1) 288,333 311,203
(7.3)
----------- ----------- --------- ----------- ----------- ---------
Net Interest Income 234,790 227,695 3.1 461,771 448,151
3.0
Provision for loan losses 22,501 20,029 12.3 43,109 43,802
(1.6)
----------- ----------- --------- ----------- ----------- ---------
Net Interest Income After 212,289 207,666 2.2 418,662 404,349
3.5
Provision ----------- ----------- --------- ----------- ----------- ---------
Non-interest Income
Service charges on deposit 22,292 21,687 2.8 42,600 41,780
2.0
accounts 20,657 19,637 5.2 40,970 38,239
7.1
Trust and financial services 1,216 2,470 (50.8) 8,715 9,692
(10.1)
income 25,650 25,644 -- 54,131 51,494
5.1
Investment securities ----------- ----------- --------- ----------- ----------- ---------
transactions
Other non-interest income
Total non-interest income 69,815 69,438 0.5 146,416 141,205
3.7
----------- ----------- --------- ----------- ----------- ---------
Non-interest Expense
Personnel 108,873 101,915 6.8 213,495 200,605
6.4
Occupancy and equipment, net 28,262 26,161 8.0 56,603 53,880
5.1
Amortization of intangibles 4,049 2,051 97.4 6,610 4,098
61.3
Other operating expenses 63,216 60,972 3.7 125,550 117,929
6.5
----------- ----------- --------- ----------- ----------- ---------
Total non-interest 204,400 191,099 7.0 402,258 376,512
6.8
expense ----------- ----------- --------- ----------- ----------- ---------
Income before income tax expense 77,704 86,005 (9.7) 162,820 169,042
(3.7)
Income Tax Expense 24,500 26,383 (7.1) 51,296 50,822
0.9
----------- ----------- --------- ----------- ----------- ---------
Net Income 53,204 59,622 (10.8) 111,524 118,220
(5.7)
=========== =========== ========= =========== =========== =========
Net Income Applicable To
Common Stock 53,204 57,945 (8.2) 111,524 114,865
(2.9)
=========== =========== ========= =========== =========== =========
FTE Adjustment 3,997 5,286 8,589 10,602
Preferred dividends -- 1,677 -- 3,355
Common dividends 24,205 22,855 48,018 42,935
Common dividends per share 0.40 0.40 0.80 0.75
declared
<CAPTION>
Twelve Months Ended June 30,
-----------------------------------
($ in thousands, except per share data) 1994 1993 % Change
----------- ----------- ---------
<S> <C> <C> <C>
Total Interest Income 1,501,716 1,550,468 (3.1)
Total Interest Expense 586,079 653,399 (10.3)
----------- ----------- ---------
Net Interest Income 915,637 897,069 2.1
Provision for loan losses 84,021 84,290 (0.3)
----------- ----------- ---------
Net Interest Income After Provision 831,616 812,779 2.3
----------- ----------- ---------
Non-interest Income
Service charges on deposit accounts 85,468 82,500 3.6
Trust and financial services income 80,021 72,634 10.2
Investment securities transactions 15,776 18,475 (14.6)
Other non-interest income 116,130 105,245 10.3
----------- ----------- ---------
Total non-interest income 297,395 278,854 6.6
----------- ----------- ---------
Non-interest Expense
Personnel 416,009 401,232 3.7
Occupancy and equipment, net 111,192 110,882 0.3
Amortization of intangibles 11,414 36,639 (68.8)
Other operating expenses 250,659 224,851 11.5
----------- ----------- ---------
Total non-interest expense 789,274 773,604 2.0
----------- ----------- ---------
Income before income tax expense 339,737 318,029 6.8
Income Tax Expense 99,048 106,196 (6.7)
----------- ----------- ---------
Net Income 240,689 211,833 13.6
=========== =========== =========
Net Income Applicable To
Common Stock 237,891 203,675 16.8
=========== =========== =========
FTE Adjustment 21,087 22,745
Preferred dividends 2,798 8,158
Common dividends 94,685 82,726
Common dividends per share declared 1.60 1.45
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FIRST OF AMERICA BANK CORPORATION
Financial Highlights
Consolidated Balance Sheets
Quarter Average
At June 30, June 30,
------------------------ ------------------------
($ in thousands, except per share 1994 1993 1994 1993
data) ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
ASSETS
Cash and due from banks 889,900 865,159 894,198 803,327
Federal funds sold and other short 59,985 15,419 68,733 51,709
term investments
Securities:
Held to maturity 3,113,702 4,619,262 3,077,472 4,630,400
Available for sale 2,950,705 -- 2,646,698 --
Held for sale -- 418,078 -- 550,495
Loans, net of unearned income
Consumer 5,572,862 4,540,688 5,380,527 4,412,946
Commercial, financial and 2,226,142 2,092,486 2,190,734 2,130,664
agricultural 3,143,184 2,884,452 3,095,201 2,880,939
Commercial real estate 4,206,142 4,108,527 3,990,807 4,156,486
Residential real estate 70,837 260,269 119,779 176,381
Loans held for sale ----------- ----------- ----------- -----------
Total loans 15,219,167 13,886,422 14,777,048 13,757,416
Less: Allowance for loan losses 204,465 181,729 201,291 180,240
----------- ----------- ----------- -----------
Net loans 15,014,702 13,704,693 14,575,757 13,577,176
----------- ----------- ----------- -----------
Total Earning Assets 21,343,559 18,939,181 20,569,951 18,990,020
----------- ----------- ----------- -----------
Premises and equipment, net 454,449 388,278 443,457 384,761
Intangibles 223,085 122,263 203,984 122,838
Other assets 370,948 347,166 330,452 323,335
----------- ----------- ----------- -----------
TOTAL ASSETS 23,077,476 20,480,318 22,240,751 20,444,041
=========== =========== =========== ===========
LIABILITIES
Deposits
Non-interest bearing 2,690,516 2,475,687 2,650,609 2,388,731
Other core deposits 7,552,046 6,936,028 7,360,698 6,926,800
CD's - negotiated 1,007,697 835,773 995,154 915,793
Other time deposits 7,871,989 7,626,541 7,835,637 7,710,684
----------- ----------- ----------- -----------
Total deposits 19,122,248 17,874,029 18,842,098 17,942,008
----------- ----------- ----------- -----------
Short term borrowings 1,812,869 739,947 1,308,168 652,371
Long term debt 410,689 271,601 348,860 273,975
Other liabilities 210,129 182,907 209,032 181,839
----------- ----------- ----------- -----------
Total liabilities 21,555,935 19,068,484 20,708,158 19,050,193
----------- ----------- ----------- -----------
Total interest bearing 18,655,290 16,409,890 17,848,517 16,479,623
liabilities ----------- ----------- ----------- -----------
SHAREHOLDERS' EQUITY
Preferred equity -- 74,586 -- 74,586
Common equity 1,521,541 1,337,248 1,532,593 1,319,262
----------- ----------- ----------- -----------
Total shareholders' 1,521,541 1,411,834 1,532,593 1,393,848
equity ----------- ----------- ----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY 23,077,476 20,480,318 22,240,751 20,444,041
=========== =========== =========== ===========
Shares outstanding
Primary 59,171,456 57,134,965 60,141,900 57,448,318
Fully Diluted 59,171,456 59,490,307 60,141,900 59,738,075
Book value per share
Primary 25.71 23.41
Fully Diluted 25.71 23.73
<CAPTION>
Year to Date Average
June 30,
------------------------
($ in thousands, except per share data) 1994 1993
----------- -----------
<S> <C> <C>
ASSETS
Cash and due from banks 873,117 810,406
Federal funds sold and other short 82,404 103,669
term investments
Securities:
Held to maturity 2,603,097 3,976,393
Available for sale 2,724,392 --
Held for sale -- 987,996
Loans, net of unearned income
Consumer 5,228,910 4,344,050
Commercial, financial and 2,164,018 2,132,933
agricultural 3,063,324 2,874,895
Commercial real estate 3,886,400 4,144,222
Residential real estate 193,534 161,718
Loans held for sale ----------- -----------
Total loans 14,536,186 13,657,818
Less: Allowance for loan losses 197,064 178,800
----------- -----------
Net loans 14,339,122 13,479,018
----------- -----------
Total earning assets 19,946,079 18,725,876
----------- -----------
Premises and equipment, net 438,352 380,830
Intangibles 170,771 123,301
Other assets 327,597 310,561
----------- -----------
TOTAL ASSETS 21,558,852 20,172,174
=========== ===========
LIABILITIES
Deposits
Non-interest bearing 2,597,852 2,360,222
Other core deposits 7,214,740 6,874,462
CD's - negotiated 945,971 895,749
Other time deposits 7,735,707 7,732,037
----------- -----------
Total deposits 18,494,270 17,862,470
----------- -----------
Short term borrowings 1,024,717 482,058
Long term debt 308,470 263,328
Other liabilities 200,572 189,985
----------- -----------
Total liabilities 20,028,029 18,797,841
----------- -----------
Total interest bearing 17,229,605 16,247,634
liabilities ----------- -----------
SHAREHOLDERS' EQUITY
Preferred equity -- 74,586
Common equity 1,530,823 1,299,747
----------- -----------
Total shareholders' equity 1,530,823 1,374,333
----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY 21,558,852 20,172,174
=========== ===========
Shares outstanding
Primary 59,957,182 57,393,456
Fully Diluted 59,957,182 59,751,111
Book value per share
Primary
Fully Diluted
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FIRST OF AMERICA BANK CORPORATION
SUPPLEMENTAL INFORMATION
1994 1993
-------------------- ------------------------------------------
2nd Qtr. 1st Qtr. 4th Qtr. 3rd Qtr. 2nd
Qtr. 1st
Qtr.
June 30 Mar. 31 Dec. 31 Sept. 30 June
30 Mar.
31
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Efficiency ratio as reported: 66.23 64.20 62.46 62.93 63.19
62.32
Efficiency ratio assuming a net
interest margin of 5.00 percent: 62.52 62.21 60.22 61.80 62.29
61.29
Efficiency ratio assuming a net
interest margin of 5.00 percent 62.75 63.71 61.05 62.33 62.79
62.78
and excluding securities gains:
----------------------------------------------------------------------------------------------------
Non-interest expense as a percent
percent of average assets: 3.69 3.84 3.63 3.71 3.75
3.78
</TABLE>
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, First of America has duly caused this report to be
signed on its behalf by the undersigned hereunto duly
authorized.
FIRST OF AMERICA BANK CORPORATION
REGISTRANT
Date: July 14, 1994 /s/ Thomas W. Lambert
Thomas W. Lambert
Executive Vice President and Chief
Financial Officer
(Principal Financial and Accounting
Officer)
