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Previous: FLEET FINANCIAL GROUP INC, S-3/A, 1998-03-31 |
Next: INFODATA SYSTEMS INC, 10KSB40, 1998-03-31 |
<PAGE>
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) MARCH 30, 1998
---------------------------------------------------------------
FLEET FINANCIAL GROUP, INC.
---------------------------------------------------
(Exact name of registrant as specified in its charter)
RHODE ISLAND
------------------------------------------------------
(STATE OR OTHER JURISDICTION OF INCORPORATION)
1-6366 05-0341324
--------------------------------------------------------------
(Commission File Number) (IRS Employer Identification No.)
ONE FEDERAL STREET, BOSTON, MA 02211
--------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 617-346-4000
------------
----------------------------------------------------------------
(Former name or former address, if changed since last report
<PAGE>
Item 5. OTHER EVENTS.
As previously reported, Fleet Financial Group, Inc. ("Fleet")
completed its acquisition of The Quick & Reilly Group, Inc. ("Quick &
Reilly") on February 1, 1998. Fleet hereby files certain unaudited pro forma
combined financial information for Fleet and Quick & Reilly for the period
ended December 31, 1997.
Item 7. FINANCIAL STATEMENTS AND OTHER EXHIBITS
EXHIBIT NO. DESCRIPTION
EXHIBIT 99 Unaudited Pro Forma Combined
Financial Information for
Fleet and Quick & Reilly for
the period ended
December 31, 1997
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed in its
behalf by the undersigned hereunto duly authorized.
FLEET FINANCIAL GROUP, INC.
Registrant
By /s/ Robert C. Lamb, Jr.
--------------------------
Robert C. Lamb, Jr.
Controller
Chief Accounting Officer
Dated: March 30, 1998
-2-
<PAGE>
EXHIBIT 99
[LOGO]FLEET
FLEET/QUICK & REILLY
RESTATED FINANCIAL INFORMATION
FEBRUARY 1998
THE ACCOMPANYING PRO FORMA UNAUDITED FINANCIAL INFORMATION HAS BEEN RESTATED TO
REFLECT THE MERGER OF FLEET FINANCIAL GROUP, INC. AND THE QUICK & REILLY GROUP,
INC. FOR ALL PERIODS PRESENTED.
<PAGE>
FLEET FINANCIAL GROUP
(Unaudited)
RESTATED SELECTED FINANCIAL INFORMATION
REFLECTING THE QUICK & REILLY ACQUISITION
<TABLE>
<CAPTION>
QUARTERLY SUMMARY OF RESULTS
-------------------------------------------------------------
(Dollars in millions) 1997
-------------------------------------------------------------
4Q 3Q 2Q 1Q
<S> <C> <C> <C> <C>
Net Interest Income (FTE) $ 944 $ 944 $ 933 $ 918
Noninterest Income 624 619 600 613
------------ ------------ ------------ ------------
Total Revenue (FTE) 1,568 1,563 1,533 1,531
Noninterest Expense 887 873 870 904
------------ ------------ ------------ ------------
Net Income Before Provision, Net Gains, Taxes
and Merger-Related Charges 681 690 663 627
Loan Loss Provision 90 85 83 65
Gains on Sales of Business Units, Net of Charges - - 20 -
Provision for Taxes 224 243 244 219
Tax Equivalent Adjustment 11 10 9 9
------------ ------------ ------------ ------------
Net Income Before Merger-Related Charges 356 352 347 334
Merger-Related Charges, net of tax 22 - - -
------------ ------------ ------------ ------------
Net Income $ 334 $ 352 $ 347 $ 334
============ ============ ============ ============
OPERATING RATIOS (%)
Return on Assets 1.51% 1.62% 1.62% 1.56%
Return on Common Equity 17.98 19.99 20.14 19.17
Efficiency Ratio 56.5 55.9 56.7 59.1
COMMON SHARE DATA
Basic Earnings Per Share $ 1.17 $ 1.23 $ 1.20 $ 1.13
Diluted Earnings Per Share 1.13 1.20 1.17 1.10
Cash Dividends Declared 0.49 0.45 0.45 0.45
Book Value 27.36 24.91 24.11 23.74
Market Capitalization (Diluted, in millions) 21,324 18,425 17,951 16,481
Shares Outstanding (Period End) 283,662,818 272,203,259 273,319,089 278,146,300
Diluted Shares Outstanding 283,851,298 281,029,031 283,814,698 288,513,429
BALANCE SHEET
Total Assets $ 91,047 $ 88,l05 $ 87,573 $ 85,824
Loans and Leases 62,565 60,494 59,177 60,071
Common Stockholders' Equity 7,761 6,781 6,591 6,603
Total Stockholders' Equity 8,452 7,616 7,426 7,472
Nonperforming Assets 416 479 531 704
Net Charge-offs 90 93 102 90
</TABLE>
<PAGE>
FLEET FINANCIAL GROUP
(Unaudited)
YEAR TO DATE SUMMARY OF RESULTS
(Dollars in millions)
<TABLE>
<CAPTION>
------------ ------------ ------------
1997 1996 1995
------------ ------------ ------------
<S> <C> <C> <C>
Net Interest Income (FTE) $ 3,739 $ 3,498 $ 3,118
Noninterest Income 2,456 2,333 1,939
------------ ------------ ------------
Total Revenue (FTE) 6,195 5,831 5,057
Noninterest Expense 3,535 3,512 3,090
------------ ------------ ------------
Net Income Before Provision, Net Gains, Taxes,
Merger-Related and Special Charges 2,660 2,319 1,967
Loan Loss Provision 322 213 101
Gains on Sales of Business Units, Net of Charges 20 - -
Provision for Taxes 930 849 713
Tax Equivalent Adjustment 39 36 45
------------ ------------ ------------
Net Income Before Merger-Related and Special Charges 1,389 1,221 1,108
Merger-Related and Special Charges, net of tax 22 - 429
------------ ------------ ------------
Net Income $ 1,367 $ 1,221 $ 679
============ ============ ============
OPERATING RATIOS (%)
Return on Assets 1.58% 1.40% 0.79%
Return on Common Equity 19.30 17.68 9.93
Efficiency Ratio 57.0 60.2 61.1
COMMON SHARE DATA
Basic Earnings Per Share $ 4.73 $ 4.04 $ 1.83
Diluted Earnings Per Share 4.59 3.96 1.70
Cash Dividends Declared 1.84 1.74 1.63
Book Value 27.36 24.08 22.03
Market Capitalization (Diluted, in millions) 21,358 14,464 11,654
Shares Outstanding (Period End) 283,662,818 283,855,262 284,550,869
Diluted Shares Outstanding 284,302,405 290,012,987 285,995,539
BALANCE SHEET
Total Assets $ 91,047 $ 89,650 $ 87,955
Loans and Leases 62,565 59,861 52,566
Common Stockholders' Equity 7,761 6,837 6,268
Total Stockholders' Equity 8,452 7,790 6,667
Nonperforming Assets 416 723 499
Net Charge-offs 376 370 302
</TABLE>
2
<PAGE>
FLEET FINANCIAL GROUP
(Unaudited)
<TABLE>
<CAPTION>
ASSET SUMMARY
-----------------------------------------------------
(Dollars in millions) 1997
-----------------------------------------------------
4Q 3Q 2Q 1Q
<S> <C> <C> <C> <C>
END OF PERIOD BALANCES
Earning Assets $77,906 $75,283 $74,637 $73,773
Total Assets 91,047 88,105 87,573 85,824
Loans and Leases 62,565 60,494 59,177 60,071
Loans and Leases, excluding divested businesses 62,565 60,494 59,177 57,917
Securities 9,362 8,770 8,704 8,557
Mortgage Servicing Rights 1,768 1,800 1,841 1,861
Goodwill and Other Intangibles 2,196 1,763 1,669 1,709
Reserve for Credit Losses (1,432) (1,432) (1,443) (1,462)
Total Deposits 63,735 62,907 63,229 64,139
Short-Term Borrowings 7,531 7,105 6,429 4,168
Long-Term Debt 4,500 4,459 4,550 4,617
Common Stockholders' Equity 7,761 6,781 6,591 6,603
Total Stockholders' Equity 8,452 7,616 7,426 7,472
<CAPTION>
ASSET SUMMARY
-----------------------------------------------------
(Dollars in millions) 1997
-----------------------------------------------------
4Q 3Q 2Q 1Q
<S> <C> <C> <C> <C>
AVERAGE BALANCES
Earning Assets $75,869 $74,619 $73,763 $74,307
Earning Assets, excluding divested businesses 75,869 72,775 71,480 71,955
Total Assets 87,516 86,130 85,976 87,018
Loans and Leases 61,274 59,317 60,017 59,687
Loans and Leases, excluding divested businesses 61,274 59,317 57,950 57,529
Securities 9,095 8,690 8,327 8,580
Mortgage Servicing Rights 1,795 1,846 1,887 1,769
Goodwill and Other Intangibles 1,858 1,730 1,702 1,733
Total Deposits 62,652 62,495 63,777 64,691
Short-Term Borrowings 6,049 5,895 4,999 4,198
Long-Term Debt 4,341 4,487 4,611 5,003
Common Stockholders' Equity 7,086 6,678 6,592 6,704
Total Stockholders' Equity 7,799 7,513 7,440 7,605
</TABLE>
3
<PAGE>
FLEET FINANCIAL GROUP
(Unaudited)
<TABLE>
<CAPTION>
LOANS BY TYPE- PERIOD END
-----------------------------------------------------
(Dollars in millions) 1997
-----------------------------------------------------
4Q 3Q 2Q 1Q
<S> <C> <C> <C> <C>
Commercial and Industrial $32,000 $30,869 $30,585 $30,081
Commercial Real Estate:
Construction 890 867 1,046 1,023
Interim/Permanent 4,787 4,848 5,059 5,126
------- ------- ------- -------
Total Commercial Real Estate 5,677 5,715 6,105 6,149
Lease Financing 3,376 3,064 2,858 2,602
------- ------- ------- -------
Total Commercial Loans 41,053 39,648 39,548 38,832
Consumer:
Residential Real Estate 10,019 9,377 8,168 7,92l
Home Equity 4,851 4,948 5,070 4,997
Credit Card 2,742 2,683 2,823 3,049
Student Loan 1,029 1,198 1,174 1,301
Other Consumer 2,871 2,640 2,394 3,971
------- ------- ------- -------
Total Consumer 21,512 20,846 19,629 21,239
------- ------- ------- -------
Total Loans 62,565 60,494 59,177 60,071
Divested Businesses -- -- -- (2,154)
------- ------- ------- -------
Loans Excluding Divested Businesses $62,565 $60,494 $59,177 $57,917
======= ======= ======= =======
<CAPTION>
LOANS BY TYPE- AVERAGE
-----------------------------------------------------
(Dollars in millions) 1997
-----------------------------------------------------
4Q 3Q 2Q 1Q
<S> <C> <C> <C> <C>
Commercial and Industrial $31,143 $30,353 $30,151 $29,228
Commercial Real Estate:
Construction 867 939 991 1,085
Interim/Permanent 4,798 4,914 5,080 5,247
------- ------- ------- -------
Total Commercial Real Estate 5,665 5,853 6,071 6,332
Lease Financing 3,124 2,907 2,665 2,586
------- ------- ------- -------
Total Commercial Loans 39,932 39,113 38,887 38,146
Consumer:
Residential Real Estate 9,760 8,679 7,993 8,002
Home Equity 4,903 5,026 5,067 5,037
Credit Card 2,670 2,734 2,934 3,145
Student Loan 1,169 1,171 1,233 1,314
Other Consumer 2,840 2,594 3,903 4,043
------- ------- ------- -------
Total Consumer 21,342 20,204 21,130 21,541
------- ------- ------- -------
Total Loans 61,274 59,317 60,017 59,687
Divested Businesses -- -- (2,067) (2,158)
------- ------- ------- -------
Loans Excluding Divested Businesses $61,274 $59,317 $57,950 $57,529
======= ======= ======= =======
</TABLE>
4
<PAGE>
FLEET FINANCIAL GROUP
(Unaudited)
<TABLE>
<CAPTION>
NONINTEREST INCOME - QUARTERLY
-----------------------------------------------------
(Dollars in millions) 1997
-----------------------------------------------------
4Q 3Q 2Q 1Q
<S> <C> <C> <C> <C>
Service Charges, Fees and Commissions $157 $159 $159 $157
Brokerage Revenue:
Fee and Commission Revenue 80 78 66 73
Trading Revenue 30 30 24 17
Investment Services Revenue 108 104 103 103
Mortgage Banking Revenue, net 67 66 91 104
Student Loan Servicing Fees 24 24 26 26
Venture Capital Revenue 15 29 10 18
Foreign Exchange/Interest Rate Products 14 12 11 12
Securities Gains 12 4 4 13
Other Noninterest Income 117 113 106 90
---- ---- ---- ----
Total Noninterest Income $624 $619 $600 $613
==== ==== ==== ====
<CAPTION>
NONINTEREST INCOME- YEAR TO DATE
------ ------ ------
(Dollars in millions) 1997 1996 1995
------ ------ ------
<S> <C> <C> <C>
Service Charges, Fees and Commissions $ 633 $ 537 $ 442
Investment Services Revenue 418 372 322
Brokerage Revenue:
Fee and Commission Revenue 299 270 227
Trading Revenue 100 59 53
Mortgage Banking Revenue, net 327 372 321
Student Loan Servicing Fees 101 98 72
Venture Capital Revenue 71 106 36
Foreign Exchange/Interest Rate Products 49 34 20
Securities Gains 33 43 32
Other Noninterest Income 425 442 414
------ ------ ------
Total Noninterest Income $2,456 $2,333 $1,939
====== ====== ======
</TABLE>
5
<PAGE>
FLEET FINANCIAL GROUP
(Unaudited)
<TABLE>
<CAPTION>
NONINTEREST EXPENSE - QUARTERLY
-----------------------------------------------------
(Dollars in millions) 1997
-----------------------------------------------------
4Q 3Q 2Q 1Q
<S> <C> <C> <C> <C>
Employee Compensation and Benefits $422 $428 $443 $459
Equipment 81 81 76 79
Occupancy 74 74 70 77
Intangible Asset Amortization 44 43 41 41
Legal and Other Professional 31 22 35 29
Marketing 31 34 22 22
Other Noninterest Expense 204 191 183 197
---- ---- ---- ----
Total Noninterest Expense $887 $873 $870 $904
==== ==== ==== ====
<CAPTION>
NONINTEREST EXPENSE-YEAR TO DATE
------ ------ ------
(Dollars in millions) 1997 1996 1995
------ ------ ------
<S> <C> <C> <C>
Employee Compensation and Benefits $1,752 $1,735 $1,554
Equipment 317 300 234
Occupancy 294 293 257
Intangible Asset Amortization 169 140 108
Legal and Other Professional 118 136 106
Marketing 109 106 100
Other Noninterest Expense 776 802 731
------ ------ ------
Total Noninterest Expense $3,535 $3,512 $3,090
====== ====== ======
</TABLE>
6
<PAGE>
FLEET FINANCIAL GROUP
(Unaudited)
<TABLE>
<CAPTION>
COMPUTATION OF EQUIVALENT SHARES AND EARNINGS PER COMMON SHARE
(Dollars in millions, except per share data)
BASIC
---------------------------------------------------------
Three Months Ended
---------------------------------------------------------
12/31/97 9/30/97 6/30/97 3/31/97
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Earnings per share:
Net income $ 334 $ 352 $ 347 $ 334
Less: Preferred stock dividends (13) (16) (16) (17)
------------ ------------ ------------ ------------
Adjusted net income $ 321 $ 336 $ 331 $ 317
============ ============ ============ ============
Total average shares 275,047,227 272,415,656 275,715,284 280,835,256
============ ============ ============ ============
EPS on net income $ 1.17 $ 1.23 $ 1.20 $ 1.13
============ ============ ============ ============
<CAPTION>
DILUTED
---------------------------------------------------------
Three Months Ended
---------------------------------------------------------
12/31/97 9/30/97 6/30/97 3/31/97
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Equivalent shares:
Average shares outstanding 275,047,227 272,415,656 275,715,284 280,835,256
Additional shares due to:
Stock options 3,101,775 3,024,352 2,782,689 2,634,636
Warrants 5,702,296 5,589,023 5,316,725 5,043,537
------------ ------------ ------------ ------------
Total equivalent shares 283,851,298 281,029,031 283,814,698 288,513,429
============ ============ ============ ============
Earnings per share:
Net income $ 334 $ 352 $ 347 $ 334
Less: Preferred stock dividends (13) (16) (16) (17)
------------ ------------ ------------ ------------
Adjusted net income $ 321 $ 336 $ 331 $ 317
============ ============ ============ ============
Total equivalent shares 283,851,298 281,029,031 283,814,698 288,513,429
============ ============ ============ ============
EPS on net income $ 1.13 $ 1.20 $ 1.17 $ 1.10
============ ============ ============ ============
<CAPTION>
COMPUTATION OF EQUIVALENT SHARES AND EARNINGS PER COMMON SHARE
(Dollars in millions, except per share data)
BASIC DILUTED
------------------------------------------ ------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
------------------------------------------ ------------------------------------------
12/31/97 12/31/96 12/31/95 12/31/97 12/31/96 12/31/95
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Equivalent shares:
Average shares outstanding 275,978,241 284,448,131 265,459,028 275,978,241 284,448,131 265,459,028
Additional shares due to:
Stock options - - - 2,897,825 1,599,088 952,901
Warrants - - - 5,426,339 3,965,768 3,549,616
Dual convertible
preferred stock - - - - - 16,033,994
------------ ------------ ------------ ------------ ------------ ------------
Total equivalent shares 275,978,241 284,448,131 265,459,028 284,302,405 290,012,987 285,995,539
============ ============ ============ ============ ============ ============
Earnings per share:
Net Income $ 1,367 $ 1,221 $ 679 $ 1,367 $ 1,221 $ 679
Less: Preferred stock dividends (62) (72) (37) (62) (72) (37)
Exchange of dual convertible
preferred stock - - (157) - - (157)
------------ ------------ ------------ ------------ ------------ ------------
Adjusted net income $ 1,305 $ 1,149 $ 485 $ 1,305 $ 1,149 $ 485
============ ============ ============ ============ ============ ============
Total equivalent shares 275,978,241 284,448,131 265,459,028 284,302,405 290,012,987 285,995,539
============ ============ ============ ============ ============ ============
EPS on net income $ 4.73 $ 4.04 $ 1.83 $ 4.59 $ 3.96 $ 1.70
============ ============ ============ ============ ============ ============
</TABLE>
7
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