<PAGE>
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1998
COMMISSION FILE NO. 1-7410
MELLON 401(k) RETIREMENT SAVINGS PLAN
One Mellon Bank Center
500 Grant Street
Pittsburgh, PA 15258-0001
(Full time of the Plan and the address of the Plan)
MELLON BANK CORPORATION
One Mellon Bank Center
500 Grant Street
Pittsburgh, PA 15258-0001
(Name of issuer of the securities
held pursuant to the Plan and the
address of its principal executive office)
<PAGE>
MELLON 401(k)
RETIREMENT SAVINGS PLAN
Financial Statements and Schedules
December 31, 1998 and 1997
(With Independent Auditors' Report Thereon)
<PAGE>
MELLON 401(k)
RETIREMENT SAVINGS PLAN
Table of Contents
<TABLE>
<CAPTION>
Page
<S> <C>
Independent Auditors' Report 1
Financial Statements:
Statements of Net Assets Available for Plan Benefits 2
Statements of Changes in Net Assets Available for Plan Benefits 3
Notes to Financial Statements 4
Schedules
1 Item 27(a) - Assets Held for Investment Purposes (at the end
of the plan year) 18
2 Item 27(d) - Reportable Transactions - Series Transactions 19
</TABLE>
Note: All other schedules required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement
Income Security Act of 1974, as amended (ERISA), have been omitted
because there is no information to report.
<PAGE>
[Logo of
KPMG ]
One Mellon Bank Center Telephone 412 391 9710
Pittsburgh, PA 15219 Fax 412 391 8963
Independent Auditors' Report
Corporate Benefits Committee
Mellon Bank Corporation:
We have audited the accompanying statements of net assets available for plan
benefits of the Mellon 401(k) Retirement Savings Plan (the Plan) as of December
31, 1998 and 1997, and the related statements of changes in net assets available
for plan benefits for the years then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform and audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits of the Mellon
401(k) Retirement Savings Plan as of December 31, 1998 and 1997, and the changes
in net assets available for plan benefits for the years then ended in conformity
with generally accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The schedules included as Schedules 1 and
2 are presented for purposes of additional analysis and are not a required part
of the basic financial statements but are supplementary information required by
the Department of Labor's Rules and Regulations for Reporting and Disclosure
under the Employee Retirement Income Security Act of 1974, as amended. The
schedules have been subjected to the auditing procedures applied in the audits
of the basic financial statements and, in our opinion, are fairly stated in all
material respects in relation to the basic financial statements taken as a
whole.
/s/ KPMG LLP
June 11, 1999
[Logo] KPMG LLP. KPMG LLP, a U.S. limited liability partnership, is
a member of KPMB International, a Swiss association.
<PAGE>
MELLON 401(k)
RETIREMENT SAVINGS PLAN
Statements of Net Assets Available for Plan Benefits
December 31, 1998 and 1997
<TABLE>
<CAPTION>
Assets 1998 1997
-------------------- ------------------
<S> <C> <C>
Noninterest-bearing cash $ -- 90,107
Investments, at fair value (notes 3 and 6):
Collective trust funds 6,343,826 8,838,915
Registered investment companies 556,192,223 432,410,685
Mellon Bank Corporation common stock 442,205,569 405,201,071
Loans to participants 23,770,795 20,080,747
-------------------- ------------------
Total investments 1,028,512,413 866,531,418
Contributions receivable:
Employer contributions made pursuant to employee
salary reduction agreements 1,460,485 1,540,227
Pending investment sales and other receivables 4,086,850 3,536,318
-------------------- ------------------
Total assets 1,034,059,748 871,698,070
Liabilities
Pending investment purchases and other payables 1,245,507 1,897,211
-------------------- ------------------
Net assets available for plan benefits (note 7) $ 1,032,814,241 869,800,859
==================== ==================
</TABLE>
See accompanying notes to financial statements.
2
<PAGE>
MELLON 401(K)
RETIREMENT SAVINGS PLAN
Statements of Changes in Net Assets Available for Plan Benefits
Years Ended December 31, 1998 and 1997
<TABLE>
<CAPTION>
1998 1997
--------------------- -------------------
<S> <C>
Contributions:
Employer matching contributions $ 12,085,881 11,491,255
Employer contributions made pursuant to employee
salary reduction agreements 37,622,774 34,791,524
Rollover contributions 3,917,072 5,862,668
--------------------- -------------------
Total contributions 53,625,727 52,145,447
Investment income:
Dividends from Mellon Bank Corporation common stock 9,011,274 9,772,505
Net realized gain and unrealized appreciation on
Mellon Bank Corporation common stock 51,944,704 155,690,813
Collective trust funds income 347,403 276,628
Registered investment companies income 12,817,075 11,352,535
Net realized gain and unrealized appreciation on
registered investment companies 71,334,626 64,306,114
Interest income on loans to participants 1,829,200 1,540,595
--------------------- -------------------
Total investment income 147,284,282 242,939,190
Participants' withdrawals (71,652,422) (71,053,013)
--------------------- -------------------
Net increase 129,257,587 224,031,624
Net transfers to the Plan (note 8) 33,755,795 --
Net assets available for plan benefits (note 7):
Beginning of year 869,800,859 645,769,235
--------------------- -------------------
End of year $ 1,032,814,241 869,800,859
===================== ===================
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
MELLON 401(k)
RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(1) Description of the Plan
The following description of the Mellon 401(k) Retirement Savings Plan
(the Plan) provides only general information. Participants should refer
to the Plan document for a more complete description of the Plan's
provisions.
(a) General
The Plan is a defined contribution plan established to cover the
employees of substantially all subsidiaries of Mellon Bank
Corporation (the Corporation) who have one year of service. It is
subject to the provisions of the Employee Retirement Income
Security Act of 1974, as amended (ERISA).
The Plan is administered by the Corporate Benefits Committee (the
Committee), whose members consist of the heads of the Human
Resources, Legal and Finance Departments of the Corporation and
one member who is appointed by the Chief Executive Officer of the
Corporation. The Committee is the Named Fiduciary and the Plan
Administrator. Administrative costs arising under the Plan, other
than fees charged by the mutual funds, are paid by the
Corporation. The members of the Committee receive no remuneration
from the Plan with respect to their service in such capacity. A
separate committee, the Benefits Investment Committee, whose
members consist of the Chief Financial Officer of the Corporation
and five other members appointed by the Chief Executive Officer of
the Corporation, has been assigned certain fiduciary duties with
respect to Plan investments. Mellon Bank, N.A. is the Trustee.
Participants in the Plan have the option of investing their
contributions through salary deferrals to one or more of the
following mutual funds (note 3): Dreyfus Institutional Prime Money
Market Fund, Dreyfus Bond Market Index Fund, Dreyfus S&P 500 Stock
Index Fund, Dreyfus Disciplined Stock Fund, Dreyfus Premier Small
Company Stock Fund, Warburg-Pincus International Equity Fund,
Dreyfus LifeTime Portfolios, Inc. - Income Portfolio, Dreyfus
LifeTime Portfolios, Inc. - Growth and Income Portfolio and
Dreyfus LifeTime Portfolios, Inc. - Growth Portfolio; or the
Dreyfus-Certus Stable Value Fund, which is a collective trust
fund.
The Loan Fund is comprised of loans to participants. The Employer
Stock Fund is maintained for investment of employer matching
contributions and employer discretionary contributions, if any.
Participant account balances include salary reduction, employer
matching and employer discretionary contributions. In the event
the Plan is terminated, such account balances shall be distributed
to the participants.
4
<PAGE>
MELLON 401(k)
RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(b) Contributions
An eligible employee of the Corporation may become a participant
in the Plan following completion of one year of service. Employees
hired prior to February 1, 1995, were eligible to participate in
the Plan on the date of employment.
Salary reduction contributions may be made at a rate of one to
sixteen percent of the employee's base compensation, less other
pre-tax benefits, but may not exceed the annual dollar limit
prescribed by the tax laws ($10,000 in 1998 and $9,500 in 1997).
Employees may change the rate of contribution or discontinue
contributions at any time.
Participants may rollover amounts representing distributions from
other qualified retirement plans.
Salary reduction contributions and employer matching contributions
are subject to the nondiscrimination requirements imposed under
Internal Revenue Code (IRC) sections 401(k) and 401(m). In
addition, special rules imposed by IRC section 415 limit the
amount of contributions that may be allocated to the accounts of
each participant.
Semimonthly, the Corporation makes a matching contribution to the
Plan in an amount equal to fifty percent of the first 6% of each
participant's salary reduction contribution, provided that the
matching contribution shall not exceed $3,000 per year for any
individual participant. The Corporation's matching contributions
are made in the Corporation's common stock based upon fair market
value.
The Corporation is permitted to make discretionary contributions,
as determined and authorized by the Board of Directors.
Discretionary contributions would be allocated to each eligible
participant's accounts and invested in the Employer Stock Fund.
There were no discretionary contributions during the years ended
December 31, 1998 and 1997.
(c) Vesting
Participants are fully vested in Mellon matching contributions
upon entering the Plan. Balances of participants who were in the
former Dreyfus Profit-Sharing Plan as of September 1, 1996, were
merged into the 401(k) Retirement Savings Plan. Those participant
balances are subject to the vesting schedule in the former Dreyfus
Profit-Sharing Plan. Under that schedule, participants will be
fully vested after completing five years of service. While former
Dreyfus Profit-Sharing Plan participants may not be vested in
their balances under that plan, they are fully and immediately
vested in Mellon matching contributions attributable to 401(k)
deferrals.
5
<PAGE>
MELLON 401(k)
RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(d) Forfeitures
Forfeitures are applicable only to the former Dreyfus
Profit-Sharing Plan participants who have not completed 5 years of
service prior to their termination of employment. If the
participant is not fully vested at the employment termination
date, the non-vested benefit is forfeited. At December 31, 1998,
forfeited nonvested accounts that were unallocated to participants
totaled $69,264 ($449,106 in 1997). These accounts will be used to
reduce future employer contributions. Also, in 1998, employer
contributions were reduced by $713,000 ($2,098,952 in 1997) from
forfeited nonvested accounts.
(e) Distributions
Upon termination of employment, participants may elect to receive
a distribution of their vested account balances. Payment must
begin not later than the year in which the participant attains age
seventy and one-half. The Plan also permits distributions in the
event of the participant's permanent disability.
(f) Loans to Participants
Loans are made available to all requesting participants in amounts
up to the lesser of (a) $50,000, (b) one-half of the participant's
account balance or (c) the value of the participant's account
balance less the current value of their Employer Stock Fund. Such
loans are repaid in periodic installments through payroll
deduction. Loan repayments of both principal and interest are
invested by the Trustee among the available investment funds in
the same proportions as the participant's salary reduction
contributions are invested. The loan interest rate is one
percentage point above the prime rate published in the Wall Street
Journal on the first business day of each month.
(2) Summary of Significant Accounting Policies
(a) Basis of Financial Statements
The accompanying financial statements have been prepared on the
accrual basis. Amounts payable to participants terminating
participation in the Plan are included as a component of net
assets available for plan benefits (note 7). The preparation of
the financial statements in conformity with generally accepted
accounting principles requires the Plan Administrator to make
estimates and assumptions that affect the amounts reported in the
financial statements and notes thereto. Actual results could
differ from those estimates.
6
<PAGE>
MELLON 401(k)
RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(b) Investments
Investments in common stock traded on securities exchanges and
investment companies are valued at their last reported sales price
on the last business day of the Plan year. Investments in
collective trust funds are valued at the net asset value of the
respective funds on the last day of the Plan year.
Purchases and sales of securities are reflected on a trade-date
accounting basis.
In accordance with the policy of stating investments at fair
value, changes in unrealized appreciation or depreciation are
reflected in the statements of changes in net assets available for
plan benefits.
Dividend income is recorded on the ex-dividend date. Income from
other investments is recorded as earned on an accrual basis.
(3) Investment Programs
Mellon Bank, N.A., a subsidiary of the Corporation, acts as Trustee under
a declaration of trust providing for the establishment, management,
investment and reinvestment of the Plan's assets. The funds listed below
were the investment options for salary reduction contributions as of
December 31, 1998. Any of these funds may be invested in short-term debt
obligations of any nature or held in cash pending investment or
distribution. The assets that comprise these funds may be invested in
registered investment companies or collective trust funds.
Registered investment companies:
(a) Dreyfus Institutional Prime Money Market Fund
The objective of this fund is to invest in high-grade,
short-term obligations paying a fixed rate of return and
commonly referred to as money market securities.
(b) Dreyfus Bond Market Index Fund
The objective of this fund is to match the performance of the
Lehman Brothers Government/Corporate Bond Index by investing 80%
of the Fund's assets in U.S. government obligations and
fixed-rate investment grade securities that are included in that
benchmark index. The remaining 20% can be invested in government
securities and corporate securities.
7
<PAGE>
MELLON 401(k)
RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(c) Dreyfus S&P 500 Stock Index Fund
The objective of this fund is to match the performance of the
Standard & Poor's 500 Composite Stock Price Index (S&P 500),
which is a leading measure of the value of the nation's largest
corporations. The fund invests in all 500 stocks in the S&P 500
in proportion to their weighting in the Index.
(d) Dreyfus Disciplined Stock Fund
The objective of this fund is to outperform the S&P 500 on a
consistent basis by investing primarily in equity securities.
The fund typically invests at least 65% of its assets in equity
securities and no more than 20% of its assets in money market
securities.
(e) Dreyfus Premier Small Company Stock Fund
The objective of this fund is to consistently outperform the
Russell 2500 Stock Index, while maintaining a similar level of
risk. This fund primarily invests in small capitalization stocks
that generally range from $100 million to $1.5 billion in market
capitalization.
(f) Warburg-Pincus International Equity Fund
The objective of this fund is to create long-term capital
appreciation by investing in international equity securities.
The fund is designed to take advantage of the growth potential
of foreign markets.
(g) Dreyfus LifeTime Portfolios, Inc.
The following three investment portfolios are provided:
Income Portfolio
The objective of this fund is to maximize income by
investing in common stock, fixed-income securities and
short-term money market instruments.
Growth and Income Portfolio
The objective of this fund is to seek a combination of
growth and income by investing in both equity securities and
fixed-income securities, with up to 15% of its assets in
international securities.
8
<PAGE>
MELLON 401(k)
RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
Growth Portfolio
The objective of this fund is to create capital appreciation
by investing in both equity securities and fixed-income
securities, with up to 25% of its assets invested in
international securities.
Collective trust fund:
Dreyfus-Certus Stable Value Fund
The objective of this fund is to create current income and
maintain stability of principal by investing in investment
contracts with life insurance companies or commercial banks
that meet established credit standards, debt securities
backed by the U.S. government or its agencies and short-term
money market instruments.
There can be no assurance that the stated objective of any of the funds
can be achieved.
All salary reduction contributions are invested at the direction of the
participant in one or more of the established funds or in any common,
collective or investment company fund selected by the Benefit Investment
Committee having a stated investment objective consistent with the
objectives of any of the investment funds under the Plan. However, no
salary reduction contributions may be invested in the Employer Stock
Fund.
Employer matching and discretionary contributions, if any, are invested
in the Corporation's common stock and held in the Employer Stock Fund.
The Loan Fund represents a separate fund that is administered by the
Trustee in connection with loans to participants of the Plan.
Participants may borrow from their accounts a portion of their account
balance. The amount of each loan is transferred from one or more of the
investment funds in the same proportion that the participant's interest
in such funds bears to the participant's aggregate interest in all such
investment funds.
(4) Federal Income Taxes
The Internal Revenue Service (IRS) issued its latest determination on
February 25, 1999, which stated that the Plan is qualified under section
401(a) of the Internal Revenue Code (the Code), and the related trust is
exempt from tax under section 501(a) of the Code. In the opinion of the
Plan Administrator, the Plan and the related trust have operated in
accordance with the terms of the Plan and in conformity with the
applicable provisions of the Code. Accordingly, the accompanying
financial statements do not include a provision for federal income taxes.
9
<PAGE>
MELLON 401(K)
RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(5) Fund Information
<TABLE>
<CAPTION>
1998
-------------------------------------------------------------------------
FUND INFORMATION
----------------------------------------------------
PARTICIPANT DIRECTED
----------------------------------------------------
Dreyfus- Dreyfus
Loan Certus Stable Disciplined
Assets Total Fund Value Fund Stock Fund
------------------ --------------- ---------------- ---------------
<S> <C> <C> <C> <C>
Investments, at fair value:
Collective trust funds $ 6,343,826 -- 6,343,826 --
Registered investment companies 556,192,223 -- -- 115,547,384
Mellon Bank Corporation common stock 442,205,569 -- -- --
Loans to participants 23,770,795 23,770,795 -- --
------------------ --------------- ---------------- ---------------
Total investments 1,028,512,413 23,770,795 6,343,826 115,547,384
Contributions receivable:
Employer contributions made pursuant to
employee salary reduction agreements 1,460,485 -- 20,764 351,924
Pending investment sales and other receivables 4,086,850 -- -- 275,627
Net interfund transfer receivable/payable -- (451,302) 733,198 (214,981)
------------------ --------------- ---------------- ---------------
Total assets 1,034,059,748 23,319,493 7,097,788 115,959,954
Liabilities
Pending investment purchases and other payables 1,245,507 -- -- --
------------------ --------------- ---------------- ---------------
Net assets available for plan benefit $ 1,032,814,241 23,319,493 7,097,788 115,959,954
================== =============== ================ ===============
<CAPTION>
-------------------------------------------------------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Dreyfus Warburg-pincus Dreyfus
Premier Small International Institutional Dreyfus
Company Equity Prime Money LifeTime
Assets Stock Fund Fund Market Fund Growth Fund
------------------- ---------------- --------------- --------------
<S> <C> <C> <C> <C>
Investments, at fair value:
Collective trust funds $ -- -- -- --
Registered investment companies 29,759,505 14,120,235 85,096,304 18,996,913
Mellon Bank Corporation common stock -- -- -- --
Loans to participants -- -- -- --
------------------- ---------------- --------------- --------------
Total investments 29,759,505 14,120,235 85,096,304 18,996,913
Contributions receivable:
Employer contributions made pursuant to
employee salary reduction agreements 170,041 95,237 129,193 115,789
Pending investment sales and other receivables -- -- -- --
Net interfund transfer receivable/payable 35,246 29,456 1,485,345 50,845
------------------- ---------------- --------------- --------------
Total assets 29,964,792 14,244,928 86,710,842 19,163,547
Liabilities
Pending investment purchases and other payables 112,352 79,786 668,080 113,047
------------------- ---------------- --------------- --------------
Net assets available for plan benefit $ 29,852,440 14,165,142 86,042,762 19,050,500
=================== ================ =============== ==============
<CAPTION>
------------------- ---------------- --------------- --------------
------------------- ---------------- --------------- --------------
------------------- ---------------- --------------- --------------
Dreyfus Dreyfus
Dreyfus LifeTime S&P 500 Dreyfus
LifeTime Growth and Stock Bond Market
Assets Income Fund Income Fund INDEX FUND INDEX FUND
------------------- ---------------- --------------- --------------
<S> <C> <C> <C> <C>
Investments, at fair value:
Collective trust funds $ -- -- -- --
Registered investment companies 4,895,004 84,852,377 173,256,048 29,668,453
Mellon Bank Corporation common stock -- -- -- --
Loans to participants -- -- -- --
------------------- ---------------- --------------- --------------
Total investments 4,895,004 84,852,377 173,256,048 29,668,453
Contributions receivable:
Employer contributions made pursuant to
employee salary reduction agreements 23,853 132,833 363,269 57,582
Pending investment sales and other receivables -- 841,493 751 --
Net interfund transfer receivable/payable 213,868 72,534 125,056 86,266
------------------- ---------------- --------------- --------------
Total assets 5,132,725 85,899,237 173,745,124 29,812,301
Liabilities
Pending investment purchases and other payables 204,980 -- -- 67,262
------------------- ---------------- --------------- --------------
Net assets available for plan benefit $ 4,927,745 85,899,237 173,745,124 29,745,039
=================== ================ =============== ==============
<CAPTION>
-----------------------
-----------------------
Non-participant
directed
-----------------------
Employer
Assets Stock Fund
-----------------------
<S> <C>
Investments, at fair value:
Collective trust funds --
Registered investment companies --
Mellon Bank Corporation common stock 442,205,569
Loans to participants --
-----------------------
Total investments 442,205,569
Contributions receivable:
Employer contributions made pursuant to
employee salary reduction agreements --
Pending investment sales and other receivables 2,968,979
Net interfund transfer receivable/payable (2,165,531)
-----------------------
Total assets 443,009,017
Liabilities
Pending investment purchases and other payables --
-----------------------
Net assets available for plan benefit $ 443,009,017
=======================
</TABLE>
10
<PAGE>
MELLON 401(k)
RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
<TABLE>
<CAPTION>
1997
------------------------------------------------------------------------
Fund Information
----------------------------------------------------
Participant Directed
----------------------------------------------------
Dreyfus- Dreyfus
Loan Certus Stable Disciplined
Assets Total Fund Value Fund Stock Fund
---------------- -------------- --------------- ---------------
<S> <C> <C> <C> <C>
Noninterest-bearing cash $ 90,107 -- 90,077 --
Investments, at fair value:
Collective trust funds 8,838,915 -- 8,838,915 --
Registered investment companies 432,410,685 -- -- 70,352,997
Mellon Bank Corporation common stock 405,201,071 -- -- --
Loans to participants 20,080,747 20,080,747 -- --
---------------- -------------- --------------- ---------------
Total investments 866,531,418 20,080,747 8,838,915 70,352,997
Contributions receivable:
Employer contributions made pursuant to
employee salary reduction agreements 1,540,227 -- 13,158 285,866
Pending investment sales and other receivables 3,536,318 485,470 -- --
Net interfund transfer receivable/payable -- (434,479) (652,897) 540,220
---------------- -------------- --------------- ---------------
Total assets 871,698,070 20,131,738 8,289,253 71,179,083
Liabilities
Pending investment purchases and other payables (1,897,211) -- -- (129,854)
---------------- -------------- --------------- ---------------
Net assets available for plan benefit $ 869,800,859 20,131,738 8,289,253 71,049,229
================ ============== =============== ===============
<CAPTION>
------------------------------------------------------------------------
------------------------------------------------------------------------
Participant Directed
------------------------------------------------------------------------
Dreyfus Warburg-Pincus Dreyfus
Premier Small International Institutional Dreyfus
Company Equity Prime Money LifeTime
Assets Stock Fund Fund Market Fund Growth Fund
---------------- -------------- --------------- ---------------
<S> <C> <C> <C> <C>
Noninterest-bearing cash $ -- -- 30 --
Investments, at fair value:
Collective trust funds -- -- -- --
Registered investment companies 24,627,744 11,610,446 74,761,733 14,543,874
Mellon Bank Corporation common stock -- -- -- --
Loans to participants -- -- -- --
---------------- -------------- --------------- ---------------
Total investments 24,627,744 11,610,446 74,761,733 14,543,874
Contributions receivable:
Employer contributions made pursuant to
employee salary reduction agreements 183,187 106,092 146,404 110,769
Pending investment sales and other receivables -- 154,614 309,217 502,075
Net interfund transfer receivable/payable 79,329 196,313 487,226 (459,516)
---------------- -------------- --------------- ---------------
Total assets 24,890,260 12,067,465 75,704,610 14,697,202
Liabilities
Pending investment purchases and other payables (174,277) (280,827) (422,656) (108,680)
---------------- -------------- --------------- ---------------
Net assets available for plan benefit $ 24,715,983 11,786,638 75,281,954 14,588,522
================ ============== =============== ===============
<CAPTION>
------------------------------------------------------------------------
------------------------------------------------------------------------
------------------------------------------------------------------------
Dreyfus Dreyfus
Dreyfus LifeTime S&P 500 Dreyfus
LifeTime Growth and Stock Bond Market
Assets Income Fund Income Fund Index Fund Index Fund
---------------- -------------- --------------- ---------------
<S> <C> <C> <C> <C>
Noninterest-bearing cash $ -- -- -- --
Investments, at fair value:
Collective trust funds -- -- -- --
Registered investment companies 2,835,997 73,141,376 138,894,722 21,641,796
Mellon Bank Corporation common stock -- -- -- --
Loans to participants -- -- -- --
---------------- -------------- --------------- ---------------
Total investments 2,835,997 73,141,376 138,894,722 21,641,796
Contributions receivable:
Employer contributions made pursuant to
employee salary reduction agreements 18,396 128,735 292,692 46,024
Pending investment sales and other receivables 2,669 -- 65,800 35,437
Net interfund transfer receivable/payable 60,509 689,740 274,818 129,051
---------------- -------------- --------------- ---------------
Total assets 2,917,571 73,959,851 139,528,032 21,852,308
Liabilities
Pending investment purchases and other payables (61,301) (663,460) (55,846) (272)
---------------- -------------- --------------- ---------------
Net assets available for plan benefit $ 2,856,270 73,296,391 139,472,186 21,852,036
================ ============== =============== ===============
<CAPTION>
--------------------
--------------------
Non-participant
directed
--------------------
Employer
Assets Stock Fund
--------------------
<S> <C>
Noninterest-bearing cash $ --
Investments, at fair value:
Collective trust funds --
Registered investment companies --
Mellon Bank Corporation common stock 405,201,071
Loans to participants --
--------------------
Total investments 405,201,071
Contributions receivable:
Employer contributions made pursuant to
employee salary reduction agreements 208,904
Pending investment sales and other receivables 1,981,036
Net interfund transfer receivable/payable (910,314)
--------------------
Total assets 406,480,697
Liabilities
Pending investment purchases and other payables (38)
--------------------
Net assets available for plan benefit $ 406,480,659
====================
</TABLE>
11
<PAGE>
MELLON 401(k)
RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
<TABLE>
<CAPTION>
1998
--------------------------------------------------------------------
Fund Information
--------------------------------------------------
Participant Directed
--------------------------------------------------
Dreyfus- Dreyfus
Loan Certus Stable Disciplined
Total Fund Value Fund Stock Fund
--------------- ------------- --------------- --------------
<S> <C> <C> <C> <C>
Contributions:
Employer matching contributions $ 12,085,881 -- -- --
Employer contributions made pursuant to
employee salary reduction agreements 37,622,774 -- 305,912 8,664,926
Rollover contributions 3,917,072 -- 95,213 936,663
--------------- ------------- --------------- --------------
Total contributions 53,625,727 -- 401,125 9,601,589
Investment income:
Dividends from Mellon Bank Corporation
common stock 9,011,274 -- -- --
Net realized gain and unrealized appreciation
on Mellon Bank Corporation common stock 51,944,704 -- -- --
Collective trust funds income 347,403 -- 347,403 --
Registered investment companies income 12,817,075 -- -- 644,927
Net realized gain (loss) and unrealized appreciation
(depreciation) on registered investment companies 71,334,626 -- -- 22,753,813
Interest income on loans to participants 1,829,200 1,829,200 -- --
--------------- ------------- --------------- --------------
Total investment income (loss) 147,284,282 1,829,200 347,403 23,398,740
Participants' withdrawals (71,652,422) (2,287,480) (240,013) (5,316,239)
Net interfund transfers -- 2,487,775 (1,699,980) 2,310,174
--------------- ------------- --------------- --------------
Net increase (decrease) 129,257,587 2,029,495 (1,191,465) 29,994,264
Net transfers to the Plan 33,755,795 1,158,260 -- 14,916,461
Net assets available for plan benefits:
Beginning of year 869,800,859 20,131,738 8,289,253 71,049,229
--------------- ------------- --------------- --------------
End of year $ 1,032,814,241 23,319,493 7,097,788 115,959,954
=============== ============= =============== ==============
<CAPTION>
-----------------------------------------------------------------
-----------------------------------------------------------------
-----------------------------------------------------------------
Dreyfus Warburg-Pincus Dreyfus
Premier Small International Institutional Dreyfus
Company Equity Prime Money LifeTime
Stock Fund Fund Market Fund Growth Fund
--------------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
Contributions:
Employer matching contributions -- -- -- --
Employer contributions made pursuant to
employee salary reduction agreements 4,953,028 2,872,560 3,612,033 2,999,235
Rollover contributions 446,436 108,437 286,585 234,655
--------------- ------------- -------------- -------------
Total contributions 5,399,464 2,980,997 3,898,618 3,233,890
Investment income:
Dividends from Mellon Bank Corporation
common stock -- -- -- --
Net realized gain and unrealized appreciation
on Mellon Bank Corporation common stock -- -- -- --
Collective trust funds income -- -- -- --
Registered investment companies income -- -- 4,338,718 398,924
Net realized gain (loss) and unrealized appreciation
(depreciation) on registered investment companies (1,530,711) 435,877 -- 2,824,876
Interest income on loans to participants -- -- -- --
--------------- ------------- -------------- -------------
Total investment income (loss) (1,530,711) 435,877 4,338,718 3,223,800
Participants' withdrawals (1,929,226) (1,088,475) (12,918,770) (913,398)
Net interfund transfers (683,898) 50,105 4,847,431 (1,082,314)
--------------- ------------- -------------- -------------
Net increase (decrease) 1,255,629 2,378,504 165,997 4,461,978
Net transfers to the Plan 3,880,828 -- 10,594,811 --
Net assets available for plan benefits:
Beginning of year 24,715,983 11,786,638 75,281,954 14,588,522
--------------- ------------- -------------- -------------
End of year 29,852,440 14,165,142 86,042,762 19,050,500
=============== ============= ============== =============
<CAPTION>
-----------------------------------------------------------
-----------------------------------------------------------
-----------------------------------------------------------
Dreyfus Dreyfus
Dreyfus LifeTime S&P 500 Dreyfus
LifeTime Growth and Stock Bond Market
Income Fund Income Fund Index Fund Index Fund
----------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Contributions:
Employer matching contributions -- -- -- --
Employer contributions made pursuant to
employee salary reduction agreements 528,942 3,385,451 8,899,779 1,400,908
Rollover contributions 73,663 415,030 1,021,228 299,162
---------- ------------ ------------ ------------
Total contributions 602,605 3,800,481 9,921,007 1,700,070
Investment income:
Dividends from Mellon Bank Corporation
common stock -- -- -- --
Net realized gain and unrealized appreciation
on Mellon Bank Corporation common stock -- -- -- --
Collective trust funds income -- -- -- --
Registered investment companies income 206,677 2,920,815 2,686,392 1,620,622
Net realized gain (loss) and unrealized appreciation
(depreciation) on registered investment companies 216,987 10,177,592 35,744,843 711,349
Interest income on loans to participants -- -- -- --
---------- ------------ ------------ ------------
Total investment income (loss) 423,664 13,098,407 38,431,235 2,331,971
Participants' withdrawals (308,097) (3,218,773) (8,120,751) (2,006,796)
Net interfund transfers 1,353,303 (1,077,269) (5,958,553) 2,662,323
---------- ------------ ------------ ------------
Net increase (decrease) 2,071,475 12,602,846 34,272,938 4,687,568
Net transfers to the Plan -- -- -- 3,205,435
Net assets available for plan benefits:
Beginning of year 2,856,270 73,296,391 139,472,186 21,852,036
---------- ------------ ------------ ------------
End of year 4,927,745 85,899,237 173,745,124 29,745,039
========== ============ ============ ============
<CAPTION>
----------------
----------------
----------------
Non-participant
directed
---------------
Employer
Stock Fund
---------------
Contributions:
Employer matching contributions 12,085,881
Employer contributions made pursuant to
employee salary reduction agreements --
Rollover contributions --
---------------
Total contributions 12,085,881
Investment income:
Dividends from Mellon Bank Corporation
common stock 9,011,274
Net realized gain and unrealized appreciation
on Mellon Bank Corporation common stock 51,944,704
Collective trust funds income --
Registered investment companies income --
Net realized gain (loss) and unrealized appreciation
(depreciation) on registered investment companies --
Interest income on loans to participants --
---------------
Total investment income (loss) 60,955,978
Participants' withdrawals (33,304,404)
Net interfund transfers (3,209,097)
---------------
Net increase (decrease) 36,528,358
Net transfers to the Plan --
Net assets available for plan benefits:
Beginning of year 406,480,659
---------------
End of year 443,009,017
===============
</TABLE>
12
<PAGE>
MELLON 401(k)
RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
<TABLE>
<CAPTION>
1997
----------------------------------------------------------------
Fund Information
----------------------------------------------
Participant Directed
----------------------------------------------
Dreyfus- Dreyfus
Loan Certus Stable Disciplined
Total Fund Value Fund Stock Fund
----- ---- ----------- ----------
<S> <C> <C> <C> <C>
Contributions:
Employer matching contributions $ 11,491,255 -- -- --
Employer contributions made pursuant to
employee salary reduction agreements 34,791,524 -- 217,319 7,186,207
Rollover contributions 5,862,668 -- 98,048 1,129,182
--------------- ---------- ----------- -----------
Total contributions 52,145,447 -- 315,367 8,315,389
Investment income:
Dividends from Mellon Bank Corporation
common stock 9,772,505 -- -- --
Net realized gain and unrealized appreciation
on Mellon Bank Corporation common stock 155,690,813 -- -- --
Collective trust funds income 276,628 -- 276,628 --
Registered investment companies income 11,352,535 -- -- 451,836
Net realized gain (loss) and unrealized appreciation
(depreciation) on registered investment companies 64,306,114 -- -- 14,597,664
Interest income on loans to participants 1,540,595 1,540,595 -- --
--------------- ---------- ----------- ------------
Total investment income (loss) 242,939,190 1,540,595 276,628 15,049,500
Participants' withdrawals (71,053,013) (1,266,425) (11,157) (2,793,698)
Net interfund transfers -- 6,316,657 6,634,209 6,249,871)
--------------- ---------- ----------- ------------
Net increase (decrease) 224,031,624 6,590,827 7,215,047 26,821,062)
Net assets available for plan benefits:
Beginning of year 645,769,235 13,540,911 1,074,206 44,228,167
--------------- ---------- ----------- ------------
End of year 869,800,859 20,131,738 8,289,253 71,049,229
=============== ========== =========== ============
<CAPTION>
1997
-----------------------------------------------------------------------
Fund Information
-----------------------------------------------------------------------
Participant Directed
------------------------------------------------------------------------
Dreyfus Warburg-Pincus Dreyfus
Premier Small International Institutional Dreyfus
Company Equity Prime Money LifeTime
Stock Fund Fund Market Fund Growth Fund
---------- ---- ----------- -------------
<S> <C> <C> <C> <C>
Contributions:
Employer matching contributions -- -- -- --
Employer contributions made pursuant to
employee salary reduction agreements 4,834,839 3,071,111 4,399,948 2,773,765
Rollover contributions 598,645 345,899 793,873 627,007
------------ ------------- -------------- ------------
Total contributions 5,433,484 3,417,010 5,193,821 3,400,772
Investment income:
Dividends from Mellon Bank Corporation
common stock -- -- -- --
Net realized gain and unrealized appreciation
on Mellon Bank Corporation common stock -- -- -- --
Collective trust funds income -- -- -- --
Registered investment companies income -- 169,708 4,613,227 399,575
Net realized gain (loss) and unrealized appreciation
(depreciation) on registered investment companies 3,566,408 (977,202) -- 2,053,436
Interest income on loans to participants -- -- -- --
----------- -------------- -------------- ------------
Total investment income (loss) 3,566,408 (807,494) 4,613,227 2,453,011
Participants' withdrawals (661,761) (392,683) (21,163,334) (383,443)
Net interfund transfers 3,372,908 1,210,261 (2,074,343) 2,213,055
----------- -------------- -------------- ------------
Net increase (decrease) 11,711,039 3,427,094 (13,430,629) 7,683,395
Net assets available for plan benefits:
Beginning of year 13,004,944 8,359,544 88,712,583 6,905,127
----------- -------------- -------------- ------------
End of year 24,715,983 11,786,638 75,281,954 14,588,522
=========== ============== ============== ============
<CAPTION>
-------------------------------------------------------------------
-------------------------------------------------
-------------------------------------------------------------------
-------------------------------------------------------------------
Dreyfus Dreyfus
Dreyfus LifeTime S&P 500 Dreyfus
LifeTime Growth and Stock Bond Market
Income Fund Income Fund Index Fund Index Fund
----------- ------------ ----------- ----------
Contributions:
Employer matching contributions -- -- -- --
Employer contributions made pursuant to
employee salary reduction agreements 462,988 3,201,411 7,458,007 1,185,929
Rollover contributions 281,057 525,587 1,238,338 225,032
------------ -------------- ----------- --------------
Total contributions 744,045 3,726,998 8,696,345 1,410,961
Investment income:
Dividends from Mellon Bank Corporation
common stock -- -- -- --
Net realized gain and unrealized appreciation
on Mellon Bank Corporation common stock -- -- -- --
Collective trust funds income -- -- -- --
Registered investment companies income 142,206 2,458,287 1,941,475 1,176,221
Net realized gain (loss) and unrealized appreciation
(depreciation) on registered investment companies 142,928 10,737,775 33,374,450 810,655
Interest income on loans to participants -- -- -- --
------------ -------------- ----------- --------------
Total investment income (loss) 285,134 13,196,062 35,315,925 1,986,876
Participants' withdrawals (88,096) (3,104,542) (5,926,691) (1,150,525)
Net interfund transfers 580,953 (9,536,902) (5,284,507) 203,847
------------ -------------- ----------- --------------
Net increase (decrease) 1,522,036 4,281,616 32,801,072 2,451,159
Net assets available for plan benefits:
Beginning of year 1,334,234 69,014,775 106,671,114 19,400,877
------------ -------------- ----------- --------------
End of year 2,856,270 73,296,391 139,472,186 21,852,036
============ ============== =========== ==============
<CAPTION>
--------------------
--------------------
--------------------
Non-participant
directed
--------------------
Employer
Stock Fund
------------------
<S> <C>
Contributions:
Employer matching contributions 11,491,255
Employer contributions made pursuant to
employee salary reduction agreements --
Rollover contributions --
-----------------
Total contributions 11,491,255
Investment income:
Dividends from Mellon Bank Corporation
common stock 9,772,505
Net realized gain and unrealized appreciation
on Mellon Bank Corporation common stock 155,690,813
Collective trust funds income --
Registered investment companies income --
Net realized gain (loss) and unrealized appreciation
(depreciation) on registered investment companies --
Interest income on loans to participants --
-----------------
Total investment income (loss) 165,463,318
Participants' withdrawals (34,110,658)
Net interfund transfers (9,886,009)
-----------------
Net increase (decrease) 132,957,906
Net assets available for plan benefits:
Beginning of year 273,522,753
-----------------
End of year 406,480,659
=================
</TABLE>
13
<PAGE>
MELLON 401(k)
RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(6) Investments
Investments of each fund as of December 31, 1998, were as follows:
<TABLE>
<CAPTION>
Market value
Number of ----------------------------------
shares Per
Fund or units Cost unit Total
- --------------------------------------- ------------------ -------------- ------------- ----------------
<S> <C> <C> <C> <C>
Dreyfus-Certus Stable Value Fund 6,343,826 $ 6,343,826 $ 1.00 $ 6,343,826
-------------- ----------------
Total collective trust funds 6,343,826 6,343,826
Dreyfus Institutional Prime
Money Market Fund 85,096,304 85,096,304 1.00 85,096,304*
Dreyfus LifeTime Income Fund 364,483 4,917,716 13.43 4,895,004
Dreyfus LifeTime Growth and
Income Fund 4,882,185 74,654,967 17.38 84,852,377*
Dreyfus LifeTime Growth Fund 1,075,094 18,137,728 17.67 18,996,913
Dreyfus Premier Small Company
Stock Fund 1,747,475 28,897,887 17.03 29,759,505
Dreyfus Institutional S&P 500
Stock Index Fund 6,697,180 106,007,185 25.87 173,256,048*
Dreyfus Disciplined Stock Fund 3,084,554 91,129,020 37.46 115,547,384*
Dreyfus Bond Market Index Fund 2,911,526 28,634,005 10.19 29,668,453
Warburg-Pincus International
Equity Fund 793,718 15,692,828 17.79 14,120,235
-------------- ----------------
Total registered
investment companies 453,167,640 556,192,223
Employer Stock Fund 6,432,081@ 120,917,431 68.75@ 442,205,569*
Loans to participants - 23,770,795 - 23,770,795
-------------- ----------------
Total investments $ 604,199,692 $ 1,028,512,413
============== ================
</TABLE>
* Investments greater than 5% of net assets available for plan benefits at
the end of the plan year.
@ In April of 1999, the Corporation announced a two-for-one split of the
Corporation's common stock payable in May 1999. The data reported above
does not reflect that split.
(Continued)
14
<PAGE>
MELLON 401(k)
RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
Investments of each fund as of December 31, 1997, were as follows:
<TABLE>
<CAPTION>
Market value
Number of --------------------------------
shares Per
Fund or units Cost unit Total
- -------------------------------------- -------------- -------------- ------------- ---------------
<S> <C> <C> <C> <C>
Dreyfus-Certus Stable Value Fund 8,838,915 $ 8,838,915 $ 1.00 $ 8,838,915
-------------- ---------------
Total collective trust funds 8,838,915 8,838,915
Dreyfus Institutional Prime
Money Market Fund 74,761,733 74,761,733 1.00 74,761,733*
Dreyfus Bond Market Index Fund 2,164,180 20,907,205 10.00 21,641,796
Dreyfus Basic S&P 500 Stock
Index Fund 6,752,296 100,728,607 20.57 138,894,722*
Dreyfus Disciplined Stock Fund 2,260,700 62,178,834 31.12 70,352,997*
Dreyfus Premier Small Company
Stock Fund 1,361,461 22,029,283 18.09 24,627,744
Warburg-Pincus International
Equity Fund 682,566 14,081,307 17.01 11,610,446
Dreyfus LifeTime Income Fund 220,186 2,957,594 12.88 2,835,997
Dreyfus LifeTime Growth and
Income Fund 4,655,721 69,971,450 15.71 73,141,376*
Dreyfus LifeTime Growth Fund 935,899 15,876,429 15.54 14,543,874
-------------- ---------------
Total registered
investment companies 383,492,442 432,410,685
Employer Stock Fund:
Mellon Bank Corporation
common stock 6,683,729@ 106,027,085 60.63@ 405,201,071*
Loans to participants 20,080,747 20,080,747 1.00 20,080,747
-------------- ---------------
Total investments $ 518,439,189 $ 866,531,418
============== ===============
</TABLE>
* Investments greater than 5% of net assets available for plan benefits at
the end of the plan year.
@ In April 1999, the Corporation announced a two-for-one split of the
Corporation's common stock payable in May 1999. The data reported above
does not reflect that split.
(Continued)
15
<PAGE>
MELLON 401(k)
RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(7) Reconciliation of Financial Statements and Form 5500
The following is a reconciliation of net assets available for benefits per
the financial statements to the Form 5500:
<TABLE>
<CAPTION>
December 31,
---------------------------------------
1998 1997
------------------ -----------------
<S> <C> <C>
Net assets available for benefits per the
financial statements $ 1,032,814,241 869,800,859
Amounts allocated to withdrawing
participants (4,179,843) (3,835,188)
------------------ -----------------
Net assets available for benefits per the
Form 5500 $ 1,028,634,398 865,965,671
================== =================
</TABLE>
The following is a reconciliation of benefits paid to participants (i.e.,
withdrawals) per the financial statements to the Form 5500:
<TABLE>
<CAPTION>
Year ended
December 31,
1998
-------------------
<S> <C>
Benefits paid to participants per the
financial statements 71,652,422
Add: Amounts allocated to withdrawing
participants at December 31, 1998 4,179,843
Less: Amounts allocated to withdrawing
participants at December 31, 1997 (3,835,188)
-------------------
Benefits paid to participants per the
Form 5500 $ 71,997,077
===================
</TABLE>
Amounts allocated to withdrawing participants are recorded on the Form 5500
for benefit claims that have been processed and approved for payment prior
to December 31, 1998, but not yet paid as of that date.
(Continued)
16
<PAGE>
MELLON 401(k)
RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(8) Plan Merger
On May 20, 1997, the Board of Directors of the Corporation resolved that
The Boston Company Employee Savings Plan (the Savings Plan), a plan
maintained by a subsidiary of the Corporation, be merged with and into
the Mellon 401(k) Retirement Savings Plan with the Plan being the
surviving plan. The plan merger was effective January 1, 1998, and the
transfer of the Savings Plan assets in the amount of $33,755,795 occurred
in March of 1998.
(9) Subsequent Event - Fund Conversion
The Benefits Investment Committee voted to replace the Warburg-Pincus
International Equity Fund with the Founders Worldwide Growth Fund as an
investment option in the Plan. All balances invested in the
Warburg-Pincus International Equity Fund will automatically be
transferred to the Founders Worldwide Growth Fund as of April 1, 1999.
(10) Subsequent Event - Plan Amendment
The Plan was amended effective April 5, 1999, to allow employees to
invest their own pre-tax contributions in the Employee Stock Fund. Also,
similar to other investment options, the Employer Stock Fund will now
accept loan repayments and allow participants to transfer contributions
in and out of the Fund.
(11) Subsequent Event - Stock Split
On April 20, 1999, the Corporation announced a two-for-one split of the
Corporation's common stock. The two-for-one stock split is being
structured as a stock dividend of one additional share of common stock
paid on each issued share of common stock. The additional shares
resulting from the split will be allocated on May 17, 1999, to
shareholders of record at the close of business on May 3, 1999.
(12) Subsequent Event - Plan Merger
The Plan Administrator intends to merge the Employee Savings and Profit
Sharing Plan of United National Bank into the Mellon Bank 401(k)
Retirement Savings Plan in July of 1999. The United National Bank Plan
has approximately 300 participants and $10,000,000 in net assets
(unaudited).
17
<PAGE>
Schedule 1
MELLON 401(K)
RETIREMENT SAVINGS PLAN
EIN: 25-1233834
Plan Number: 001
Item 27(a) - Assets Held for Investment Purposes (at the end of the plan year)
December 31, 1998
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Column A Column B Column C Column D Column E
- ---------- -------------------------------- ---------------------------------------------------- ---------------- ---------------
Identity of issue, borrower, Current
lessor or similar party Description of investment Cost value
-------------------------------- ---------------------------------------------------- ---------------- ---------------
<S> <C> <C> <C> <C>
Collective trust funds
* Mellon Bank Corporation Dreyfus-Certus Stable Value Fund $ 6,343,826 6,343,826
---------------- ---------------
Registered investment companies
* Mellon Bank Corporation Dreyfus Institutional Prime Money Market Fund 85,096,304 85,096,304
* Mellon Bank Corporation Dreyfus Bond Market Index Fund 28,634,005 29,759,505
* Mellon Bank Corporation Dreyfus Basic S&P 500 Index Fund 106,007,185 173,256,048
* Mellon Bank Corporation Dreyfus Disciplined Stock Fund 91,129,020 115,547,384
* Mellon Bank Corporation Dreyfus Premier Small Company Stock Fund 28,897,887 29,668,453
* Mellon Bank Corporation Warburg-Pincus International Equity Fund 15,692,828 14,120,235
* Mellon Bank Corporation Dreyfus LifeTime Income Fund 4,917,716 4,895,004
* Mellon Bank Corporation Dreyfus LifeTime Growth & Income Portfolio 74,654,967 84,852,377
* Mellon Bank Corporation Dreyfus LifeTime Growth Fund 18,137,728 18,996,913
Total registered investment companies 453,167,640 556,192,223
---------------- ---------------
Common stock
* Mellon Bank Corporation Mellon Bank Corporation Common Stock 120,917,431 442,205,569
---------------- ---------------
Loans
* Participant loans Participant loans with various rates of interest
from 8.75% to 13.20% and various maturity
dates through 2008 0 (1) 23,770,795
---------------- ---------------
Total investments $ 580,428,897 1,028,512,413
================ ===============
</TABLE>
(1) The cost of participant loans is $-0- as indicated in the instructions to
the Form 5500 - Item 27(a).
* Party-in-interest
18
<PAGE>
Schedule 2
MELLON 401(K)
RETIREMENT SAVINGS PLAN
EIN: 25-1233834
Plan Number: 001
Item 27(d) - Reportable Transactions - Series Transactions
Year Ended December 31, 1998
- --------------------------------------------------------------------------------
Series Transactions, When Aggregated, Involving an Amount in Excess of Five
Percent of the Current Value of Plan Assets
<TABLE>
<CAPTION>
Identity of Number of Number of
party involved Description of assets purchases sales
- -------------------------------- ------------------------------------------------------ ---------------- ----------------
<S> <C> <C> <C>
Mellon Bank Corporation Dreyfus Institutional Prime Money Market Fund 138 168
Mellon Bank Corporation Dreyfus Disciplined Stock Fund 163 122
<CAPTION>
Total Total
Identity of dollar value dollar value Net gain
party involved of purchases of sales or (loss)
- -------------------------------- ------------------ ----------------- -----------------
<S> <C> <C> <C>
Mellon Bank Corporation $ 26,864,578 37,199,167 --
Mellon Bank Corporation 37,375,407 10,041,795 1,616,574
</TABLE>
Note: Columns E (Lease/Rental) and F (Expense Incurred with Transaction) have
been omitted because there is no information to report.
19
<PAGE>
Signature
---------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
administrators of the Mellon 401(k) Retirement Savings Plan have duly caused
this annual report to be signed by the undersigned thereunto duly authorized.
Mellon 401(k) Retirement Savings Plan
By: /s/ Steven G. Elliott
---------------------
Steven G. Elliott
Chief Financial Officer of Mellon
Bank Corporation & Member of the
Corporate Benefits Committee
Date: June 24, 1999
<PAGE>
[LOGO OF KPMG] Exhibit 23
Consent of Independent Certified Public Accountants
The Board of Directors
Mellon Bank Corporation:
We consent to incorporation by reference in the Registration Statements (Nos.
333-75605 and 333-16745) on Form S-8 of Mellon Bank Corporation of our report
dated June 11, 1999, that is included in the December 31, 1998, Annual Report on
Form 11-K of the Mellon 401(k) Retirement Savings Plan.
/s/ KPMG LLP
June 24, 1999
[LOGO]
KPMG LLP. KPMG LLP, a U.S. Limited Liability Partnership, is a member of KPMG
International a Swiss association
