<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) - April 18, 1995
MELLON BANK CORPORATION
(Exact name of registrant as specified in charter)
Pennsylvania 1-7410 25-1233834
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number Identification No.)
One Mellon Bank Center
500 Grant Street
Pittsburgh, Pennsylvania 15258
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code - (412) 234-5000
<PAGE>
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
Exhibit
Number Description
99.1 Mellon Bank Corporation Press Release, dated April 18, 1995,
regarding first quarter results of operations.
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.
MELLON BANK CORPORATION
Date: April 18, 1995 By: Steven G. Elliott
Steven G. Elliott
Vice Chairman, Chief
Financial Officer and Treasurer
<PAGE>
EXHIBIT INDEX
Number Description Method of Filing
99.1 Press Release dated Filed herewith
April 18, 1995
<PAGE>
EX-99.1
[LOGO OF MELLON BANK CORPORATION] News Release
ANALYSTS:
--------
Donald J. MacLeod
Contact: (412) 234-5601 Corporate Affairs
One Mellon Bank Center
MEDIA: Pittsburgh, PA 15258-0001
------
Margaret Kirch Cohen Tilda Walsh
(412) 234-0850 (412) 234-5873
- -------------------------------------------------------------------------------
FOR IMMEDIATE RELEASE
MELLON REPORTS FIRST QUARTER 1995 EARNINGS
------------------------------------------
. Earnings Per Common Share and Net Income Applicable to Common Stock
Both Increase 13 Percent
. Return on Common Shareholders' Equity Reaches 17.55 Percent for Quarter
PITTSBURGH, April 18, 1995 -- Mellon Bank Corporation today reported first
quarter 1995 earnings per common share of $1.08 and net income applicable to
common stock of $160 million, compared with $.96 per common share and $141
million in the first quarter of 1994. Annualized return on common shareholders'
equity and return on assets were 17.55 percent and 1.77 percent, respectively,
in the first quarter of 1995, compared with 16.12 percent and 1.67 percent,
respectively, in the first quarter of 1994.
"Our first quarter performance reflects a strong net interest margin and
continued emphasis on cost control," said Frank V. Cahouet, chairman, president
and chief executive officer. "Even though Mellon has the highest common
shareholders' equity ratio among large banks, our return on common shareholders'
equity has increased significantly during the last several years, now outpacing
the banking industry."
Net interest revenue for the quarter was $389 million, up 6 percent from $367
million in the same prior-year period. Fee revenue was $399 million, down 8
percent from $436 million in the first quarter of 1994. The decrease was
attributable primarily to lower mutual fund administration and management
revenues, due in part to the sale of the third-party mutual fund administration
business in 1994 and lower levels of assets under
<PAGE>
Mellon Reports Earnings
April 18, 1995
Page 2
management. In addition, the decrease in fee revenue reflects one-time gains on
the sale of interests in certain partnerships recorded in the first quarter of
1994.
Operating expense for the first quarter of 1995 was $495 million, down from $530
million in the first quarter of 1994, primarily as a result of lower marketing
expenses related to the CornerStone/sm/ MasterCard, which was launched in
January 1994, as well as lower expenses for professional and other purchased
services.
The provision for credit losses was $20 million in the first quarter of 1995,
unchanged from the prior-year period. Net credit losses were $26 million, up
from $17 million in the first quarter of 1994, principally reflecting higher
losses on the CornerStone/sm/ MasterCard product, which experienced a
significant increase in outstanding balances generated since its introduction.
Nonperforming assets totaled $243 million at March 31, 1995, up slightly from
$239 million at Dec. 31, 1994. Nonperforming assets decreased by $71 million,
or 23 percent, compared with March 31, 1994.
With balance sheet assets of approximately $40 billion and assets under
management or administration of approximately $850 billion, Mellon Bank
Corporation is a major financial services company headquartered in Pittsburgh,
providing a full range of banking and investment products and services to
individuals and small, midsized and large businesses and institutions.
###
Note: Detailed supplemental information follows.
<PAGE>
Mellon Reports Earnings
April 18, 1995
Page 3
<TABLE>
<CAPTION>
Net Interest Revenue
- --------------------
(taxable equivalent basis) Quarter ended
March 31,
(dollar amounts in millions) 1995 1994 Increase
- ----------------------------------------------------------------
<S> <C> <C> <C>
Net interest revenue $ 392 $ 371 $ 21
- ----------------------------------------------------------------
Average loans $26,670 $24,636 $2,034
- ----------------------------------------------------------------
Average interest-earning assets $33,106 $32,085 $1,021
- ----------------------------------------------------------------
Net interest margin 4.80% 4.69% 11 bp
- ----------------------------------------------------------------
</TABLE>
The improvement in net interest revenue and the net interest margin in the first
quarter of 1995, compared with the first quarter of 1994, primarily resulted
from a higher level of interest-earning assets as well as a higher-yielding
asset mix as lower-yielding money market assets were replaced with higher-
yielding loans. Average loans increased $2.0 billion, or 8%, while money market
assets decreased $.9 billion. The increase in average loans resulted primarily
from a $1.0 billion increase in credit card loans including $.8 billion related
to the CornerStone/sm/ credit card product, a $.9 billion increase in retail
loans and a $.8 billion increase in domestic wholesale loans. Loan growth was
offset in part by a $.5 billion decrease in average loans related to the
Corporation's seasonal tax refund anticipation loan program that was not offered
in 1995. Excluding the tax refund anticipation loans, average loans increased
10% in the first quarter of 1995 compared to the first quarter of 1994. Net
interest revenue increased in the first quarter of 1995 despite the loss of
revenue from the Corporation's seasonal tax refund anticipation loan program.
This program contributed 11 basis points to the net interest margin in the first
quarter of 1994.
<PAGE>
Mellon Reports Earnings
April 18, 1995
Page 4
<TABLE>
<CAPTION>
Credit Quality Expense and Net Credit Losses
- --------------------------------------------
Quarter ended
March 31,
(dollar amounts in millions) 1995 1994 Inc/(Dec)
- ----------------------------------------------------------------------------------
<S> <C> <C> <C>
Provision for credit losses $ 20 $ 20 $--
Net revenue of acquired property (4) (8) (4)
- ----------------------------------------------------------------------------------
Credit quality expense $ 16 $ 12 $ 4
- ----------------------------------------------------------------------------------
Net credit losses (recoveries)(a):
Domestic:
Consumer credit $ 31 $ 14 $17
Commercial real estate - (3) 3
Commercial and financial (3) 3 (6)
- ----------------------------------------------------------------------------------
Total domestic 28 14 14
- ----------------------------------------------------------------------------------
International (2) 3 (5)
- ----------------------------------------------------------------------------------
Total net credit losses $ 26 $ 17 $ 9
- ----------------------------------------------------------------------------------
Annualized net credit losses
to average loans .40% .27% 13 bp
- ----------------------------------------------------------------------------------
</TABLE>
(a) Excludes net credit losses on segregated assets.
Credit quality expense increased in the first quarter of 1995, compared with the
prior-year period as a result of lower gains on the sale of acquired property.
The provision for credit losses was unchanged.
The increase in net credit losses compared with the first quarter of 1994
resulted from a $17 million increase in credit card losses, including $15
million related to the CornerStone/sm/ portfolio. The Corporation expects a
further increase in the level of net credit losses from the CornerStone/sm/
portfolio due to the significant increase in outstandings that this product has
generated since it was introduced in January 1994. At March 31, 1995, this
portfolio, which has yet to reach a mature level of delinquencies and credit
losses, had total outstandings of $902 million.
<PAGE>
Mellon Reports Earnings
April 18, 1995
Page 5
<TABLE>
<CAPTION>
Noninterest Revenue
- -------------------
Quarter ended
March 31,
(in millions) 1995 1994 Inc/(Dec)
- ----------------------------------------------------------------------
<S> <C> <C> <C>
Fee revenue:
Trust and investment management $ 219 $255 $(36)
Cash management and deposit
transaction charges 47 51 (4)
Mortgage servicing 25 16 9
Foreign currency and securities trading 24 19 5
Credit card 19 14 5
Information services 16 20 (4)
Other 49 61 (12)
- ----------------------------------------------------------------------
Total fee revenue 399 436 (37)
Gains (losses) on sale of securities (1) 2 (3)
- ----------------------------------------------------------------------
Total noninterest revenue $ 398 $438 $(40)
- ----------------------------------------------------------------------
</TABLE>
The decrease in trust and investment management fees in the first quarter of
1995, compared with the prior-year period, resulted from several factors.
Mutual fund administration and custody fees decreased $16 million and included
an $8 million decrease in revenue related to the second quarter 1994 sale of the
Boston-based third-party mutual fund administration business as well as a $4
million decrease at Dreyfus. Securities lending revenue decreased $10 million
from its peak level in the first quarter of 1994. In addition, revenue from the
management of Dreyfus' mutual fund assets decreased $6 million. The decrease in
securities lending revenue primarily resulted from narrowing margins in a period
of rising short-term interest rates as well as a lower volume of securities lent
in the first quarter of 1995. The lower revenue from the management of mutual
funds resulted from a lower average level of mutual fund assets managed.
Average funds managed at Dreyfus in the first quarter of 1995 were $68 billion
compared with $78 billion in the first quarter of 1994. This decrease resulted
primarily from a $5 billion reduction in average institutional money market
assets managed
<PAGE>
Mellon Reports Earnings
April 18, 1995
Page 6
and a $4 billion reduction in average bond funds. At March 31, 1995 total
mutual funds assets managed at Dreyfus were $69 billion compared to $66 billion
at December 31, 1994.
The decrease in cash management and deposit transaction charges primarily
reflected a shift to deposit balance-based compensation from fee-based
compensation as the method of payment for cash management services due to the
300 basis point increase in short-term interest rates since the first quarter of
1994.
The increase in mortgage servicing fees, compared with the prior-year period,
primarily resulted from ongoing acquisitions of mortgage servicing rights. The
total mortgage servicing portfolio increased approximately $11 billion from
March 31, 1994, to $37 billion.
Credit card revenue increased in the first quarter of 1995, compared with the
first quarter of 1994, primarily as a result of fee revenue generated by the
Corporation's CornerStone/sm/ credit card product. The decrease in information
services fees, compared with the prior-year period, resulted in part from
revenue recorded in the first quarter of 1994 related to special stock transfer
services transactions as well as lower customer activity in this period. The
increase in foreign currency and securities trading fee revenue in the first
quarter of 1995 was attributable to higher foreign exchange fees earned,
primarily as a result of increased global custody and corporate customer
activity.
<PAGE>
Mellon Reports Earnings
April 18, 1995
Page 7
The decrease in other fee revenue in the first quarter of 1995, compared with
the first quarter of 1994, primarily resulted from approximately $13 million of
one-time net gains recorded at Dreyfus in the first quarter of 1994 from the
sale of certain non-strategic interests in partnerships, in anticipation of the
August 1994 merger of Dreyfus with the Corporation. Cancellation of the
Corporation's seasonal tax refund anticipation loan program reduced other fee
revenue $10 million, compared with a year ago, partially offset by a $7 million
increase in revenue generated from the electronic filing of income tax returns.
The following table summarizes the major components of the changes in fee
revenue in the first quarter of 1995 compared to the first quarter of 1994.
<TABLE>
<CAPTION>
Summary of major components
of the change in fee revenue First quarter 1995 compared
to first quarter 1994
(in millions) Inc/(Dec)
- ----------------------------------------------------------------------------
<S> <C>
Gains on sale of partnerships $(13)
Mutual fund administration and custody fees
The Boston Company (Including $8 million
relating to divestitures) (12)
Dreyfus (4)
Securities lending revenue (10)
Tax refund anticipation loan fees (10)
Mutual fund management fees (6)
Mortgage servicing revenue 9
Electronic filing of income tax return fees 7
Other 2
- ----------------------------------------------------------------------------
Total change in fee revenue $(37)
- ----------------------------------------------------------------------------
</TABLE>
<PAGE>
Mellon Reports Earnings
April 18, 1995
Page 8
<TABLE>
<CAPTION>
Operating Expense
- -----------------
Quarter ended
March 31,
(dollar amounts in millions) 1995 1994 Inc/(Dec)
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C>
Staff expense $240 $245 $ (5)
Net occupancy expense 51 50 1
Professional, legal and other purchased services 38 46 (8)
Equipment expense 34 37 (3)
Amortization of goodwill, core deposit
and other identified intangibles 24 27 (3)
FDIC assessment and regulatory
examination fees 15 16 (1)
Amortization of purchased mortgage
servicing rights and purchased
credit card relationships 13 12 1
Other expense 84 105 (21)
- ----------------------------------------------------------------------------------------
Operating expense before the net
revenue of acquired property 499 538 (39)
- ----------------------------------------------------------------------------------------
Net revenue of acquired property (4) (8) (4)
- ----------------------------------------------------------------------------------------
Total operating expense $495 $530 $(35)
- ----------------------------------------------------------------------------------------
Average full-time equivalent staff 24,300 23,900 400
- ----------------------------------------------------------------------------------------
Efficiency ratio (a) 63% 67% (4)
Efficiency ratio excluding amortization of
goodwill, core deposit and other identified
intangibles recorded in
connection with acquisitions 60 63 (3)
- ----------------------------------------------------------------------------------------
</TABLE>
(a) Operating expense before the net revenue of acquired property, as a
percentage of revenue, computed on a taxable equivalent basis, excluding
securities gains (losses).
Operating expense before the net revenue of acquired property decreased in the
first quarter of 1995, compared with the prior-year quarter. This decrease
primarily resulted from a reduction in marketing expense related to the
CornerStone/sm/ credit card as well as lower professional, legal and other
purchased services and staff expense.
Marketing expense was $18 million lower in the first quarter of 1995 compared
with a year ago when the CornerStone/sm/ credit card was introduced. The
reduction in professional, legal and other purchased services resulted from the
integration of data processing operations at The Boston Company and lower
consulting expense. The decrease in staff expense primarily resulted from lower
pension expense.
<PAGE>
Mellon Reports Earnings
April 18, 1995
Page 9
Except for the merger with Dreyfus, which was accounted for under the pooling of
interests method, the Corporation historically has accounted for business
combinations under the purchase method of accounting, resulting in the recording
of goodwill and other identified intangibles which are amortized in future years
into operating expense. These intangibles primarily include goodwill from The
Boston Company and Meritor acquisitions, as well as core deposit intangibles and
covenants not to compete. Net income applicable to common stock, excluding the
after-tax impact of the amortization of these intangibles, is shown in the table
below:
<TABLE>
<CAPTION>
Quarter ended
March 31,
1995 1994
- ----------------------------------------------------------------
<S> <C> <C>
Net income applicable to common stock $ 160 $ 141
After-tax impact of amortization of intangibles
from purchase acquisitions 18 21
- ----------------------------------------------------------------
Total $ 178 $ 162
- ----------------------------------------------------------------
</TABLE>
Income Taxes
- ------------
The Corporation's effective tax rate for the first quarter of 1995 was 37.5%,
compared with a 38.5% effective tax rate for the first quarter of 1994. It is
currently anticipated that the effective tax rate will remain at approximately
37.5% for the foreseeable future.
<PAGE>
Mellon Reports Earnings
April 18, 1995
Page 10
<TABLE>
<CAPTION>
Nonperforming Assets(a)
- --------------------
March 31, Dec. 31, March 31,
(dollar amounts in millions) 1995 1994 1994
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
Domestic nonperforming loans:
Consumer mortgage $ 58 $ 56 $ 67
Commercial real estate 37 28 57
Other domestic 61 66 56
International nonperforming loans - 1 16
- ------------------------------------------------------------------------------
Total nonperforming loans 156 151 196
- ------------------------------------------------------------------------------
Acquired property:
Real estate acquired 112 116 152
Reserve for real estate acquired (26) (29) (35)
- ------------------------------------------------------------------------------
Real estate acquired, net of reserve 86 87 117
Other assets acquired 1 1 1
- ------------------------------------------------------------------------------
Total acquired property 87 88 118
- ------------------------------------------------------------------------------
Total nonperforming assets $ 243 $ 239 $ 314
- ------------------------------------------------------------------------------
Nonperforming loans as a percentage of
total loans .58% .56% .80%
Total nonperforming assets as a
percentage of total loans and net
acquired property .91% .89% 1.27%
- ------------------------------------------------------------------------------
</TABLE>
(a) Excludes segregated assets.
Nonperforming assets increased $4 million from December 31, 1994, as new
additions slightly exceeded repayments, credit losses and asset sales.
Nonperforming assets decreased $71 million compared with March 31, 1994,
primarily as a result of the $60 million reduction in nonperforming real estate
assets. The reduction primarily resulted from repayments, asset sales and
credit losses.
<TABLE>
<CAPTION>
Reserve for Credit Losses
- -------------------------
March 31, Dec. 31, March 31,
(dollar amounts in millions) 1995 1994 1994
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Reserve for credit losses (a) $ 601 $ 607 $ 603
Reserve as a percentage of
total loans 2.25% 2.27% 2.46%
- --------------------------------------------------------------------------------
</TABLE>
(a) Excludes reserve for segregated assets.
<PAGE>
Mellon Reports Earnings
April 18, 1995
Page 11
<TABLE>
<CAPTION>
Selected Capital Data
- ---------------------
(dollar amounts in millions, March 31, Dec. 31, March 31,
except per share amounts) 1995 1994 1994
- --------------------------------------------------------------------
<S> <C> <C> <C>
Common shareholders' equity $3,755 $ 3,687 $ 3,635
Common shareholders' equity
to assets ratio 9.48% 9.54% 9.68%
Tangible common shareholders'
equity to assets ratio (a) 7.10% 7.05% 7.07%
Total shareholders' equity $4,190 $ 4,122 $ 4,227
Total shareholders' equity
to assets ratio 10.57% 10.67% 11.26%
Tier I capital ratio 9.5%(b) 9.48% 10.00%
Total (Tier I and Tier II)
capital ratio 12.8%(b) 12.90% 13.50%
Leverage capital ratio 8.8%(b) 8.67% 8.99%
Book value per common share $25.63 $ 25.06 $ 24.85(c)
Closing common stock price $40.75 $30.625 $37.375
Market capitalization $5,969 $ 4,507 $ 5,371
- --------------------------------------------------------------------
</TABLE>
(a) Common shareholders' equity less goodwill, core deposit and other
identified intangibles divided by total assets less goodwill, core deposit
and other identified intangibles recorded in connection with acquisitions.
(b) Estimated.
(c) The March 31, 1994 book value per common share assumed full conversion
of the Series D preferred stock to common stock. Accordingly, this
included the additional paid-in capital on the Series D preferred stock
because this paid-in capital had no liquidation preference over the common
stock. The Series D preferred stock was converted to common stock in August
1994.
The increase in the Corporation's common shareholders' equity in the first
quarter of 1995, compared with a year ago, resulted from earnings retention.
The decrease in total shareholders' equity, compared with March 31, 1994,
resulted from the redemption of the Corporation's Series H preferred stock.
<PAGE>
SUMMARY DATA
Mellon Bank Corporation (and its subsidiaries)
<TABLE>
<CAPTION>
(dollar amounts in millions, Quarter ended
except per share amounts; March 31, Dec. 31, Sept. 30, June 30, March 31,
common shares in thousands) 1995 1994 1994 1994(a) 1994(a)
--------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C>
Selected key data (b)
- -----------------
Primary net income per common share $ 1.08 $ .07 $ .42 $ .97 $ .96
Return on common shareholders'
equity 17.55% 1.10% 6.76% 15.75% 16.12%
Return on assets 1.77% .42% .81% 1.69% 1.67%
Yield on interest-earning assets,
on a taxable equivalent basis 8.42% 7.92% 7.32% 6.85% 6.65%
Cost of funds supporting interest-
earning assets 3.62% 3.07% 2.66% 2.22% 1.96%
- -----------------------------------
Results excluding certain items (b)(c)
- -------------------------------
Primary net income per common share $ 1.08 $ 1.05 $ 1.02 $ .97 $ .96
Return on common shareholders'
equity 17.55% 16.49% 16.10% 15.75% 16.12%
Return on assets 1.77% 1.74% 1.74% 1.69% 1.67%
- -----------------------------------
Average balances for the period (d)
- -------------------------------
Money market investments $ 1,230 $ 1,213 $ 1,466 $ 1,813 $ 2,147
Trading account securities 316 281 351 386 504
Securities 4,890 5,062 5,421 5,306 4,798
Loans 26,670 26,401 25,084 24,251 24,636
Total interest-earning assets 33,106 32,957 32,322 31,756 32,085
Total assets 38,886 38,792 38,016 37,497 38,113
Deposits 27,318 27,260 26,963 26,989 27,790
Total interest-bearing liabilities 27,050 26,373 25,601 24,922 24,851
Common shareholders' equity 3,700 3,745 3,755 3,667 3,593
Total shareholders' equity 4,135 4,313 4,346 4,260 4,185
</TABLE>
Computation of primary net income per common share
- --------------------------------------------------
<TABLE>
<CAPTION>
Quarter ended
March 31,
--------------------
1995 1994
---- ----
<S> <C> <C>
Net income applicable to
common stock $ 160 $ 142(e)
======= =======
Average common shares outstanding 146,913 143,595
Average common shares issuable upon
conversion of Series D preferred stock
-- 2,552
Other common stock equivalents, net of
shares assumed repurchased 1,853 2,395
------- -------
Total stock and stock equivalents 148,766 148,542
======= =======
Primary net income per common share (f) $ 1.08 $ .96
======= =======
</TABLE>
- -----------------------
(a) Restated to reflect the merger with Dreyfus which was accounted for as a
pooling of interests.
(b) Percentages are annualized where applicable. All amounts are based on
unrounded numbers.
(c) Results for the fourth quarter of 1994 exclude the $130 million after tax
securities lending charge, as well as the additional $16 million of
preferred stock dividends recorded in connection with the redemption of the
Series H preferred stock. Results for the third quarter of 1994 exclude $79
million after tax of merger expenses and $10 million after tax of losses on
the disposition of securities available for sale previously owned by
Dreyfus.
(d) Computed on a daily average basis.
(e) After adding back Series D preferred stock dividends.
(f) Based on unrounded numbers.
<PAGE>
CONDENSED CONSOLIDATED INCOME STATEMENT
Mellon Bank Corporation
<TABLE>
<CAPTION>
Quarter ended
(in millions, except per March 31,
share amounts) --------------
1995 1994(a)
---- ----
<S> <C> <C>
Interest revenue
- ----------------
Interest and fees on loans (loan fees of $16 and $30) $ 583 $436
Interest-bearing deposits with banks 7 9
Federal funds sold and resale agreements 11 7
Other money market investments - 2
Trading account securities 6 7
Securities 78 61
----- ----
Total interest revenue 685 522
Interest expense
- ----------------
Interest on deposits 205 101
Federal funds purchased and repurchase agreements 29 10
Other short-term borrowings 34 16
Notes and debentures 28 28
----- ----
Total interest expense 296 155
----- ----
Net interest revenue 389 367
Provision for credit losses 20 20
----- ----
Net interest revenue after provision for credit losses 369 347
Noninterest revenue
- -------------------
Trust and investment management fees 219 255
Cash management and deposit transaction charges 47 51
Mortgage servicing fees 25 16
Foreign currency and securities trading 24 19
Credit card fees 19 14
Other 65 81
----- ----
Total fee revenue 399 436
Gains (losses) on sales of securities (1) 2
----- ----
Total noninterest revenue 398 438
Operating expense
- -----------------
Staff expense 240 245
Net occupancy expense 51 50
Professional, legal and other purchased services 38 46
Equipment expense 34 37
Amortization of goodwill, core deposit and
other identified intangibles 24 27
Other expense 112 133
Net revenue of acquired property (4) (8)
----- ----
Total operating expense 495 530
----- ----
Income before income taxes 272 255
Provision for income taxes 102 99
----- ----
Net income 170 156
Dividends on preferred stock 10 15
----- ----
Net income applicable to common stock $ 160 $141
===== ====
Primary net income per common share $1.08 $.96
===== ====
Fully diluted net income per common share $1.07 $.96
===== ====
</TABLE>
- --------------------
(a) Restated to reflect the merger with Dreyfus which was accounted for as a
pooling of interests.
<PAGE>
CONDENSED CONSOLIDATED BALANCE SHEET
Mellon Bank Corporation
<TABLE>
<CAPTION>
(dollar amounts in millions) March 31, Dec. 31, March 31,
1995 1994 1994(a)
--------- -------- --------
<S> <C> <C> <C>
Assets
- ------
Cash and due from banks $ 2,130 $ 2,285 $ 1,803
Money market investments 948 860 1,599
Trading account securities 233 71 268
Securities:
Available for sale 2,112 1,881 2,993
Investment (approximate fair value
of $3,103, $3,033 and $2,804) 3,198 3,244 2,863
Loans, net of unearned discount of
$63, $62 and $71 26,696 26,733 24,537
Reserve for credit losses (601) (607) (603)
Premises and equipment 552 558 519
Acquired property, net of reserves of
$26, $29 and $35 87 88 118
Goodwill 813 824 811
Core deposit and other identified intangibles 201 212 245
Purchased mortgage servicing rights and
purchased credit card relationships 375 352 237
Other assets 2,875 2,143 2,154
------- ------- -------
Total assets $39,619 $38,644 $37,544
======= ======= =======
Liabilities
- -----------
Deposits in domestic offices $23,279 $24,100 $25,188
Deposits in foreign offices 3,726 3,470 1,598
Short-term borrowings 4,660 3,472 2,907
Other liabilities 2,172 1,912 1,699
Notes and debentures (with original maturities
over one year) 1,592 1,568 1,925
------- ------- -------
Total liabilities 35,429 34,522 33,317
Shareholders' equity
- --------------------
Preferred stock 435 435 592
Common shareholders' equity:
Common stock - $.50 par value
Authorized - 200,000,000 shares
Issued - 147,165,480 (b); 147,165,480 (b)
and 103,504,048 shares 74 74 52
Additional paid-in capital 1,856 1,851 2,043
Retained earnings 1,867 1,780 1,725
Warrants 37 37 37
Net unrealized loss on assets
available for sale (net of taxes) (c) (53) (55) (16)
Treasury stock of 678,826; - and 7,701,783
shares at cost (26) - (206)
------- ------- -------
Total common shareholders' equity 3,755 3,687 3,635
------- ------- -------
Total shareholders' equity 4,190 4,122 4,227
------- ------- -------
Total liabilities and shareholders' equity $39,619 $38,644 $37,544
======= ======= =======
</TABLE>
- ---------------------
(a) Restated to reflect the merger with Dreyfus which was accounted for as a
pooling of interests.
(b) Reflects the three-for-two common stock split distributed on November 15,
1994.
(c) In accordance with the January 1, 1994 adoption of FAS No. 115, certain
assets available for sale are reported at fair value at March 31, 1995,
with the unrealized loss of $53 million, net of taxes, included in common
shareholders' equity. The impact of recording the unrealized loss resulted
in a reduction of book value per common share of $.36 and a reduction of 12
basis points in the common shareholders' equity to assets ratio at March
31, 1995.
