CONFORMED 1.
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended March 31, 1997 Commission file number 1-2940
HSBC Americas, Inc.
(Exact name of registrant as specified in its charter)
Delaware Corporation 22-1093160
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Marine Midland Center, Buffalo, N.Y. 14203
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (716) 841-2424
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months, and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
All voting stock (1,001 shares of Common Stock, $5 par value) is owned by HSBC
Holdings B.V., an indirect wholly owned subsidiary of HSBC Holdings plc.
This report includes a total of 15 pages.
2.
Part I - FINANCIAL INFORMATION
Page
Item 1 - Financial Statements
Consolidated Balance Sheet
March 31, 1997 and December 31, 1996 3
Consolidated Statement of Income
For The Three Months
Ended March 31, 1997 and 1996 4
Consolidated Statement of Changes in
Shareholders' Equity For The Three Months
Ended March 31, 1997 and 1996 5
Consolidated Statement of Cash Flows
For The Three Months Ended
March 31, 1997 and 1996 5
Notes to Consolidated Financial Statements 6
Item 2 - Management's Discussion and Analysis of
Financial Condition and Results of Operations 8
Part II - OTHER INFORMATION
Item 6 - Exhibits and Reports on Form 8-K 14
Signatures 15
<TABLE>
<CAPTION>
3.
CONSOLIDATED BALANCE SHEET HSBC AMERICAS, INC.
March 31, December 31,
dollars in thousands 1997 1996
- ------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Cash and due from banks $ 1,026,258 $ 967,249
Interest bearing deposits with banks 2,284,296 1,933,036
Federal funds sold and securities purchased
under resale agreements 1,830,419 1,841,863
Trading assets 1,005,199 891,546
Securities available for sale 3,760,579 2,870,075
Loans 21,221,622 14,691,916
Less - allowance for loan losses 443,548 418,159
- ------------------------------------------------------------------------------
Loans, net 20,778,074 14,273,757
Premises and equipment 217,127 189,795
Accrued interest receivable 212,587 175,326
Intangible assets 499,885 192,355
Other assets 565,108 294,753
- ------------------------------------------------------------------------------
TOTAL ASSETS $ 32,179,532 $ 23,629,755
==============================================================================
LIABILITIES
Deposits in domestic offices
Noninterest bearing $ 4,245,860 $ 4,315,447
Interest bearing 16,069,553 11,621,213
Interest bearing deposits in foreign offices 1,940,188 1,773,159
- ------------------------------------------------------------------------------
Total deposits 22,255,601 17,709,819
Short-term borrowings 5,524,946 2,481,342
Interest, taxes and other liabilities 544,030 385,434
Long-term debt 1,884,106 1,080,183
- ------------------------------------------------------------------------------
TOTAL LIABILITIES 30,208,683 21,656,778
- ------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY
Preferred stock - 98,063
Common shareholder's equity
Common stock 5 5
Capital surplus 1,803,579 1,803,427
Retained earnings 173,703 60,630
Net unrealized gain (loss) on securities
available for sale, net of taxes (6,438) 10,852
- ------------------------------------------------------------------------------
Total common shareholder's equity 1,970,849 1,874,914
- ------------------------------------------------------------------------------
Total shareholders' equity 1,970,849 1,972,977
- ------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 32,179,532 $ 23,629,755
==============================================================================
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
4.
CONSOLIDATED STATEMENT OF INCOME HSBC AMERICAS, INC.
Three months ended March 31
dollars in thousands 1997 1996
- ---------------------------------------------------------------------------
<S> <C> <C>
Interest income
Loans $ 384,268 $ 309,714
Securities 48,049 41,909
Trading assets 14,094 12,094
Deposits with banks 17,126 20,031
Federal funds sold and securities purchased
under resale agreements 14,756 4,827
- ---------------------------------------------------------------------------
Total interest income 478,293 388,575
- ---------------------------------------------------------------------------
Interest expense
Deposits
In domestic offices 121,196 98,779
In foreign offices 18,328 17,962
Short-term borrowings 32,243 30,226
Long-term debt 21,572 11,554
- ---------------------------------------------------------------------------
Total interest expense 193,339 158,521
- ---------------------------------------------------------------------------
Net interest income 284,954 230,054
Provision for loan losses 18,400 19,750
- ---------------------------------------------------------------------------
Net interest income, after provision for loan
losses 266,554 210,304
- ---------------------------------------------------------------------------
Other operating income
Trust income 10,523 9,931
Service charges 22,545 20,850
Mortgage servicing income 4,976 4,471
Other fees and commissions 30,433 27,968
Trading revenues 1,406 415
Other income 10,142 16,003
- ---------------------------------------------------------------------------
Total other operating income 80,025 79,638
- ---------------------------------------------------------------------------
346,579 289,942
- ---------------------------------------------------------------------------
Other operating expenses
Salaries 74,024 68,158
Pension and other employee benefits 18,042 19,254
- ---------------------------------------------------------------------------
Total personnel expense 92,066 87,412
Net occupancy expense 22,621 19,717
Other expenses 67,576 46,937
- ---------------------------------------------------------------------------
Total other operating expenses 182,263 154,066
Provision for ORE and other owned asset losses 475 531
- ---------------------------------------------------------------------------
Total operating expenses after provision for
ORE and other owned assets 182,738 154,597
- ---------------------------------------------------------------------------
Income before taxes 163,841 135,345
Applicable income tax expense 49,300 49,400
- ---------------------------------------------------------------------------
Net income $ 114,541 $ 85,945
===========================================================================
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
5.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY HSBC AMERICAS,INC.
- ----------------------------------------------------------------------------
Three months ended March 31
dollars in thousands 1997 1996
- ---------------------------------------------------------------------------
<S> <C> <C>
At beginning of period $1,972,977 $1,696,866
Net income 114,541 85,945
Net change in unrealized gain on
securities available for sale, net of taxes (17,290) (20,076)
Cash dividends declared on preferred stock (1,468) (1,468)
Redemption of preferred stock (98,063) -
Capital contributions from parent 152 -
- ---------------------------------------------------------------------------
At end of period $1,970,849 $1,761,267
===========================================================================
- ---------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CASH FLOWS
Three months ended March 31
dollars in thousands 1997 1996
- ---------------------------------------------------------------------------
Cash flows from operating activities
Net income $ 114,541 $ 85,945
Adjustments to reconcile net income to net cash
provided (used) by operating activities
Depreciation, amortization and deferred taxes (6,769) 12,179
Provision for loan losses 18,400 19,750
Net change in other accrual accounts 67,336 157,398
Net change in loans originated for sale (133,671) (67,557)
Net change in trading assets (109,207) (212,565)
Other, net (4,049) (31,703)
- ---------------------------------------------------------------------------
Net cash used by operating activities (53,419) (36,553)
- ---------------------------------------------------------------------------
Cash flows from investing activities
Net change in interest bearing deposits with banks (351,260) (48,663)
Net change in short-term investments 39,444 (244,521)
Purchases of securities (226,159) (890,979)
Sales of securities 70,652 10,757
Maturities of securities 111,564 92,621
Net change in credit card receivables 120,786 (82,477)
Net change in other short-term loans (12,617) 67,071
Net originations and maturities of long-term loans (617,610) 440,535
Expenditures for premises and equipment (7,754) (668)
Net cash used in acquisitions, net
of cash acquired (607,388) -
Other, net (161,222) 45,459
- ---------------------------------------------------------------------------
Net cash used by investing activities (1,641,564) (610,865)
- ---------------------------------------------------------------------------
Cash flows from financing activities
Net change in deposits 118,589 362,606
Net change in short-term borrowings 1,879,782 389,105
Repayment of long-term debt (145,000) -
Redemption of preferred stock (98,063) -
Capital contributions 152 -
Dividends paid (1,468) (1,468)
- ---------------------------------------------------------------------------
Net cash provided by financing activities 1,753,992 750,243
- ---------------------------------------------------------------------------
Net change in cash and due from banks 59,009 102,825
Cash and due from banks at beginning of period 967,249 1,242,335
- ---------------------------------------------------------------------------
Cash and due from banks at end of period $1,026,258 $1,345,160
===========================================================================
The accompanying notes are an integral part of these financial statements.
</TABLE>
6.
Notes to Consolidated Financial Statements
1. Basis of Presentation
The accounting and reporting policies of HSBC Americas, Inc. (the Company) and
its subsidiaries including its principal subsidiary, Marine Midland Bank,
conform to generally accepted accounting principles and to predominant
practice within the banking industry. Such policies, except as noted below,
are consistent with those applied in the presentation of the Company's annual
financial statements.
The interim financial information in this report has not been audited. In the
opinion of the Company's management, all adjustments necessary for a fair
presentation of financial position, results of operations and cash flows for
the interim periods have been made. The interim financial information should
be read in conjunction with the 1996 Annual Report on Form 10-K.
2. Pledged Financial Instruments
At March 31, 1997, securities, loans and other assets carried at
$4,184,561,000 were pledged as collateral for borrowings, to secure public and
trust deposits and for other purposes.
3. Acquisition
Effective March 1, 1997 the Company completed its acquisition of CTUS Inc.
(CTUS), a unitary thrift holding company. CTUS owned First Federal Savings
and Loan Association of Rochester (First Federal), a thrift institution which
had $7.0 billion in assets and deposits of $4.3 billion. First Federal
operated 79 branches in New York State.
The Company liquidated a portion of its short-term investments to fund the
acquisition price of $676 million. The transaction was accounted for as a
purchase and the results of CTUS operations are included in the Company's
financial statements from the date of acquisition. The excess fair value of
net assets acquired was $238 million and is being amortized against income
over fifteen years.
The following unaudited pro forma financial information presents the combined
results of the Company and CTUS as if the acquisition had occurred as of the
beginning of 1997 and 1996, after giving effect to certain adjustments,
including accounting adjustments relating to fair value adjustments,
amortization of goodwill, and related income tax effect. The pro forma
financial information does not necessarily reflect the results of operations
that would have occurred had the Company and CTUS constituted a single entity
during such periods.
<TABLE>
<CAPTION>
Three months ended March 31
1997 1996
(unaudited)
(in millions)
<S> <C> <C>
Net interest income after
provision for loan losses $293 $244
Net income 112 91
</TABLE>
The agreement provided that the Company issue preferred shares to CT Financial
Services Inc. (the Seller) and the Seller will continue to hold following the
purchase the preferred shares which provide for a contingent dividend or
redemption equal to the amount of recovery, net of taxes and costs, if any, by
First Federal resulting from the pending action against the United States
government alleging breaches by the government of contractual obligations to
First Federal following passage of the Financial Institutions Reform, Recovery
and Enforcement Act of 1989. The preferred shares issued have a par value of
$100.
7.
4. New Accounting Standards
Effective January 1, 1997, the Company generally adopted the provisions of
Statement of Financial Accounting Standards No. 125, Transfers and Servicing
of Financial Assets and Extinguishments of Liabilities (FAS 125),
prospectively. The Financial Accounting Standards Board delayed the effective
date of certain of the provisions until January 1, 1998. FAS 125 primarily
establishes criteria based on legal control to determine whether a transfer of
a financial asset is a sale or a secured borrowing.
The adoption of the required provisions of FAS 125 did not have a material
effect on the financial position or results of operations of the Company.
Further, the Company does not expect that adoption of the delayed provisions
will have a material effect on its financial position or results of operation.
8.
Management's Discussion and Analysis of Financial Condition and
Results of Operations
HSBC Americas, Inc. (the Company) reported first quarter 1997 net income of
$114.5 million, compared with $85.9 million in the first quarter of 1996. The
largest factor contributing to the increased net income between the quarters
was growth and recent acquisitions.
The Company's results include the effect of recent acquisition activity. The
major activity was as follows. The Company acquired $1.1 billion in selected
assets and assumed $1.2 billion in deposits of East River Savings Bank in June
1996. On December 31, 1996, the Company acquired the institutional U.S.
dollar clearing activity of Morgan Guaranty Trust Company of New York. The
Company assumed $.9 billion in deposit liabilities and acquired a like amount
of Federal funds sold. Effective March 1, 1997, the Company acquired CTUS
Inc. which owned First Federal Savings and Loan Association of Rochester.
This acquisition had $7.0 billion in assets and deposits of $4.3 billion.
Net Interest Income
Net interest income for the first quarter of 1997 was $285.0 million compared
with $230.1 million for the first quarter of 1996. The acquisitions were the
principal factor behind the increase. Additionally, there was growth in
nonacquisition business as loans and deposits increased modestly.
Interest income of $478.3 million in the first quarter of 1997 was 23.1%
higher than the first quarter of 1996. Average earning assets of $23.4
billion in the first quarter of 1997 were $4.6 billion higher than a year ago
and the average rate earned on earning assets was 8.31% compared with 8.34% a
year ago.
Interest expense for the first quarter of 1997 was $193.3 million,
representing a 22.0% increase over the first quarter of 1996. Average
interest bearing liabilities for the first quarter of 1997 were $18.7 billion,
compared with $15.0 billion a year ago. The average rate paid on interest
bearing liabilities was 4.20% compared with 4.24% a year ago.
The taxable equivalent net yield on average total assets for the current
year's first quarter was 4.65% compared with 4.64% in the 1996 first quarter.
9.
Other Operating Income
Total other operating income was $80.0 million in the first quarter of 1997,
compared with $79.6 million in the 1996 first quarter. Core fee income
categories of trust, service charges and other fees and commissions are up
8.3% during the first quarter of 1997 compared with the first quarter of 1996.
Other income in 1997 is down from 1996 due to the inclusion of various
nonrecurring items such as gains realized on investments in highly leveraged
partnership interests in 1996.
Other Operating Expenses
Other operating expenses were $182.7 million in the 1997 first quarter
compared with $154.6 million for the 1996 first quarter. The expense increase
relates directly to the acquisitions. Average staffing levels (full time
equivalents) increased to 8,400 during the first quarter of 1997 compared with
8,000 during the first quarter of 1996. Exclusive of acquisitions, average
full time equivalents were actually reduced by approximately 100.
Income Taxes
The reduction in taxes from a statutory rate of 43% to an effective rate of
30% in the first quarter of 1997 occurred since the resulting deferred tax
asset can now be realized within the statutory Federal income tax carryback
provisions. The deferred tax asset at March 31, 1997 was $86 million, net of
valuation reserve of $236 million, compared with $55 million, net of valuation
reserve of $250 million at December 31, 1996.
10.
<TABLE>
<CAPTION>
Asset Quality
The following table provides a summary of the loan loss allowance and
nonaccruing loans:
3 Months 3 Months Year
Ended Ended Ended
3/31/97 3/31/96 12/31/96
(in millions)
<S> <C> <C> <C>
Allowance for Loan Losses
Balance at beginning
of period $418.2 $477.5 $477.5
Allowance related to
acquired companies 40.3 - 3.4
Provision charged to income 18.4 19.7 64.7
Net charge offs 33.4 25.4 127.4
----- ----- -----
Balance at end of period $443.5 $471.8 $418.2
===== ===== =====
</TABLE>
<TABLE>
<CAPTION>
March 31, December 31, March 31,
1997 1996 1996
(in millions)
<S> <C> <C> <C>
Nonaccruing Loans
Balance at end of period $342.0 $357.5 $423.3
As a percent of loans
outstanding 1.61% 2.43% 3.16%
Nonperforming Loans and Assets *
Balance at end of period $360.6 $371.0 $496.0
As a percent of total assets 1.12% 1.57% 2.30%
Allowance Ratios
Allowance for loan losses
as a percent of:
Loans 2.09% 2.85% 3.52%
Nonaccruing loans 129.70 116.98 111.45
* Includes nonaccruing loans, other real estate and other owned assets.
</TABLE>
Provisions for loan losses were $18.4 million in the first quarter of 1997
compared with $19.7 million in the first quarter of 1996. Higher credit card
delinquencies, 4.84% of credit card outstandings at March 31, 1997 compared
with 3.34% at March 31, 1996, have led to increased charge offs. Net charge
offs in the credit card portfolio were $29.4 million and $19.0 million in the
first quarters of 1997 and 1996, respectively. This increased level has
partially been offset by continued improvement in commercial credit quality.
Commercial loan credit quality resulted in net recoveries of $.5 million in
the first quarter of 1997 compared with net charge offs of $2.6 million in the
first quarter of 1996. Significant reductions in the levels of nonaccruing
loans has allowed the Company to maintain sufficient loan loss allowance
coverage and record a relatively consistent level of provision expense over
recent quarters.
The Company identified impaired loans as defined by FAS 114 totaling $196.8
million at March 31, 1997, of which $76.5 million had a specific loan loss
allowance of $28.7 million. At December 31, 1996, impaired loans totaled
$257.5 million of which $60.7 million had a specific loan loss allowance of
$24.3 million.
11.
Derivative Financial Instruments
As principally an end-user of off-balance sheet financial instruments, the
Company uses various derivative financial instruments to manage its overall
interest rate risk and to reduce the risk associated with changes in the
income stream of certain on-balance sheet assets. At March 31, 1997, $31.9
billion notional value of such positions, with an estimated negative fair
value of $48.7 million were outstanding. At December 31, 1996, $27.1 billion
notional value of such positions, with an estimated negative fair value of
$17.4 million were outstanding.
The Company also maintains various derivatives in its trading portfolio to
offset risk associated with changes in market value of certain trading assets,
and to satisfy the foreign currency requirements of retail customers. These
derivatives are carried at fair value. At March 31, 1997, $.9 billion
notional value of such positions with an estimated negative fair value of $.8
million were outstanding. At December 31, 1996, $1 billion of notional value
of such positions with an estimated negative fair value of $.5 million were
outstanding.
The Company's credit risk associated with off-balance sheet positions is not
considered material, since almost all derivative contracts are executed with
counterparties affiliated through common ownership. Collateral is maintained
on these positions, the amount of which is consistent with the measurement of
exposure used in the risk based capital ratio calculations under the banking
regulators' guidelines.
Liquidity
The Company maintains a strong liquidity position. Short-term investments and
trading assets were $5.1 billion at March 31, 1997 compared with $4.7 billion
at December 31, 1996. Loans at March 31, 1997 were 66.0% of total assets
compared with 62.2% at December 31, 1996.
Deposits at March 31, 1997 were $22.3 billion, compared with $17.7 billion at
December 31, 1996. Deposits continue to exceed loans and were 104.9% of loans
at March 31, 1997. Short-term borrowings, including repurchase agreements,
were $5.5 billion at March 31, 1997 compared with $2.5 billion at December 31,
1996. Long-term borrowings were $1.9 billion at March 31, 1997 compared with
$1.1 billion at December 31, 1996. Outstanding deposits and borrowings at
March 31, 1997 include those assumed through the acquisition of CTUS Inc.
during the first quarter of 1997.
12.
Capital
Shareholders' equity was $2.0 billion at March 31, 1997, the same as at
December 31, 1996. On March 31, 1997 the Company redeemed all of its
outstanding shares of preferred stock of $98 million. The outstanding 22,154
shares of $5.50 cumulative preferred stock were redeemed at $100 plus
accrued and unpaid dividends of $1.375 per share. The outstanding 1,916,950
shares of adjustable rate cumulative preferred were redeemed at $50 plus
accrued and unpaid dividends of $.75 per share.
Under risk-based capital guidelines, the Company's capital ratios were 8.59%
at the Tier 1 level and 12.94% at the total capital level at March 31, 1997.
These ratios compared with 11.92% at the Tier 1 level and 17.00% at the total
capital level at December 31, 1996. Tier 1 and total capital includes $200
million in guaranteed mandatorily redeemable preferred securities issued by a
subsidiary of the Company in December 1996. While these securities are
classified as long-term debt on the consolidated balance sheet, the Company
uses these securities in managing its total capital mix.
Under guidelines for leverage ratios, the Company's ratio of Tier 1 capital to
quarterly average total assets was 7.29% at March 31, 1997 compared with 9.54%
at December 31, 1996.
As expected, the acquisition of CTUS Inc. lowered the capital ratios at
March 31, 1997 from those at December 31, 1996 as the acquisition was self
funded. Although the ratios have declined, they remain well above U.S.
regulatory requirements.
<TABLE>
<CAPTION>
13.
CONSOLIDATED AVERAGE BALANCES AND INTEREST RATES* HSBC AMERICAS,INC.
First Quarter 1997 First Quarter 1996
dollars in millions Balance Interest Rate Balance Interest Rate
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Assets
Interest bearing deposits
with banks $ 1,221 $ 17.1 5.69% $ 1,434 $ 20.0 5.62%
Federal funds sold and securities
purchased under resale agreements 1,152 14.8 5.20 362 4.8 5.37
Trading assets 968 14.1 5.83 802 12.1 6.04
Securities:
U.S. Government and
federal agency obligations 2,950 43.0 5.90 2,543 36.1 5.70
Other securities 211 5.1 9.84 270 5.9 8.72
- ------------------------------------------------------------------------------
Total securities 3,161 48.1 6.18 2,813 42.0 6.00
Loans:
Domestic:
Commercial 7,272 168.9 9.42 6,418 140.2 8.79
Consumer 8,852 204.0 9.29 6,435 161.4 10.08
- ------------------------------------------------------------------------------
Total domestic 16,124 372.9 9.38 12,853 301.6 9.52
International 751 12.1 6.53 516 9.0 6.97
- ------------------------------------------------------------------------------
Total loans 16,875 385.0 9.25 13,369 310.6 9.34
- ------------------------------------------------------------------------------
Total earning assets 23,377 $ 479.1 8.31% 18,780 $389.5 8.34%
- ------------------------------------------------------------------------------
Allowance for loan losses (419) (476)
Cash and due from banks 957 1,003
Other assets 994 735
- ------------------------------------------------------------------------------
Total assets $ 24,909 $ 20,042
==============================================================================
Liabilities and Shareholders' Equity
Interest bearing demand
deposits $ 1,841 $ 5.3 1.18% $ 1,627 $ 5.5 1.35%
Consumer savings deposits 4,687 35.8 3.09 3,751 29.1 3.12
Other consumer time deposits 4,862 61.4 5.12 3,231 44.4 5.52
Commercial and public savings
and other time deposits 1,900 18.7 3.99 1,929 19.8 4.12
Deposits in foreign offices,
primarily banks 1,499 18.3 4.96 1,364 17.9 5.30
- ------------------------------------------------------------------------------
Total interest bearing deposits 14,789 139.5 3.83 11,902 116.7 3.94
- ------------------------------------------------------------------------------
Federal funds purchased and securities
sold under repurchase agreements 1,307 16.9 5.26 1,052 13.6 5.20
Other short-term borrowings 1,198 15.3 5.18 1,369 16.6 4.89
Long-term debt 1,362 21.6 6.42 710 11.6 6.55
- ------------------------------------------------------------------------------
Total funds borrowed 3,867 53.8 5.64 3,131 41.8 5.37
- ------------------------------------------------------------------------------
Total interest bearing
liabilities 18,656 $ 193.3 4.20% 15,033 $158.5 4.24%
- ------------------------------------------------------------------------------
Interest rate spread 4.11% 4.10%
- ------------------------------------------------------------------------------
Noninterest bearing deposits 3,804 2,979
Other liabilities 423 291
Total shareholders' equity 2,026 1,739
- ------------------------------------------------------------------------------
Total liabilities and
shareholders' equity $ 24,909 $ 20,042
==============================================================================
Net interest income $ 285.8 $231.0
Net yield on average earning assets 4.96% 4.95%
Net yield on average total assets 4.65 4.64
- ------------------------------------------------------------------------------
Net interest income/net yield on
average earning assets:
Domestic $ 268.8 5.13% $221.0 5.23%
International 17.0 3.26 10.0 2.26
==============================================================================
* Interest and rates are presented on a taxable equivalent basis.
</TABLE>
14.
Part II - OTHER INFORMATION
Item 6 - Exhibits and Reports on Form 8-K
(a) Exhibits
None
(b) Report on Form 8-K
A Current Report on Form 8-K dated March 14, 1997 was filed
reporting that the Company had acquired CTUS Inc. effective
March 1, 1997.
A Current Report on Form 8-K dated May 8, 1997 was filed providing
historical and proforma financial statements for the acquistion of
CTUS Inc.
15.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
HSBC Americas, Inc.
(Registrant)
Date: May 8, 1997 /s/ Gerald A. Ronning
Gerald A. Ronning
Executive Vice President & Controller
(On behalf of Registrant and
as Chief Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 1,026
<INT-BEARING-DEPOSITS> 2,284
<FED-FUNDS-SOLD> 1,830
<TRADING-ASSETS> 1,005
<INVESTMENTS-HELD-FOR-SALE> 3,761
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 21,222
<ALLOWANCE> 444
<TOTAL-ASSETS> 32,180
<DEPOSITS> 22,256
<SHORT-TERM> 5,525
<LIABILITIES-OTHER> 544
<LONG-TERM> 1,684
200
0
<COMMON> 0
<OTHER-SE> 1,971
<TOTAL-LIABILITIES-AND-EQUITY> 32,180
<INTEREST-LOAN> 384
<INTEREST-INVEST> 48
<INTEREST-OTHER> 46
<INTEREST-TOTAL> 478
<INTEREST-DEPOSIT> 140
<INTEREST-EXPENSE> 193
<INTEREST-INCOME-NET> 285
<LOAN-LOSSES> 18
<SECURITIES-GAINS> 4
<EXPENSE-OTHER> 183
<INCOME-PRETAX> 164
<INCOME-PRE-EXTRAORDINARY> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 115
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<YIELD-ACTUAL> 4.96
<LOANS-NON> 342
<LOANS-PAST> 132
<LOANS-TROUBLED> 7
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 418
<CHARGE-OFFS> 48
<RECOVERIES> 15
<ALLOWANCE-CLOSE> 444
<ALLOWANCE-DOMESTIC> 201
<ALLOWANCE-FOREIGN> 26
<ALLOWANCE-UNALLOCATED> 217
</TABLE>
