<PAGE>
January 26, 1994
Securities and Exchange Commission
450 Fifth Street, N.W.
Attention: Filing Desk
Stop 1-4
Washington, D.C. 20549-1004
Re: CoreStates Financial Corp - Form 8-K
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Dear Sir or Madam:
CoreStates Financial Corp is filing through EDGAR its Form 8-K dated January 19,
1994.
Pursuant to EDGAR rules, a hard copy of the document is also being sent to the
Securities & Exchange Commission.
Very truly yours,
/s/ David T. Walker
DTW:SEC.LTR/jcg
Enclosures
cc: Hard Copy Via Federal Express To:
U.S. SEC Operations Center
Stop 0-7
6432 General Green Way
Alexandria, VA 22312
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington,D.C. 29549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Act of 1934
Date of Report (Date of earliest event reported): January 19, 1994
CoreStates Financial Corp.
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(Exact name of registrant specified in its Charter)
Pennsylvania 0-6879 23-1899716
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(State or other (Commission (IRS Employee
jurisdiction of File Number) identification No.)
incorporation)
Centre Square West, 1500 Market Street
Philadelphia, Pennsylvania 19101
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(Address of principal executive offices) (Zip Code)
Registrant's telephone, including area code: (215) 973-3806
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(Former name and former address, if changed since last report)
Page 1 of 7
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Item 5. Other Events.
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The information set forth in the earnings new release of CoreStates
Financial Corp as Exhibit 28 is incorporated by reference and made a part
hereof.
Item 7. Exhibits
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28 CoreStates Financial Corp Earnings News Release dated January 19,
1994
CORESTATES FINANCIAL CORP
(Registrant)
By /s/ David T. Walker
-------------------------
David T. Walker
Deputy Chief Counsel
Dated: January 26, 1994
Page 2 of 7
<PAGE>
Exhibit Index
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<TABLE>
<CAPTION>
Exhibit No. Page
- ----------- ----
<C> <S> <C>
28 CoreStates Financial
Corp Earnings News
Release Dated January
19, 1994 4
</TABLE>
Page 3 of 7
<PAGE>
[LETTERHEAD OF CORESTATES APPEARS HERE]
Contact Gary Brooten or Gregg Feistman
(215) 973-3346
For Release Immediately Upon Receipt
CORESTATES REPORTS RECORD OPERATING RESULTS FOR 1993
Philadelphia, January 19, 1994--CoreStates Financial Corp today reported
record operating earnings for 1993. Full year operating income was $327,927,000
or $2.80 per share, up 23% from $262,404,000 or $2.27 per share in 1992.
Fourth quarter operating and net income was $85,312,000 or 73 cents per
share, an increase of 24% from $69,107,000 or 59 cents per share in the fourth
quarter of 1992.
The full year operating income reflected a return on average assets of
1.44% and a return on average equity of 18.27%.
CoreStates also adopted two changes in accounting principles -- FAS 112, a
new method of accounting for post-employment benefits such as short- and
long-term disability pay, and FAS 115, a new method of classifying and
accounting for investments in debt and equity securities.
The adoption of FAS 112 for 1993 resulted in a January 1, 1993 one-time,
non-cash, after-tax charge of $13 million or 11 cents per share for the
cumulative total post-employment benefits liability for employee services
rendered in all previous years. In 1992
-more-
Page 4 of 7
<PAGE>
CoreStates also adopted FAS 106, a change in accounting for post-retirement
benefits, which resulted in a non-cash charge of $81 million in that year.
Income after the accounting changes was $314,917,000 in 1993 compared to
$181,418,000 in 1992. Adoption of FAS 115 for 1993 had no effect on earnings,
but did add to shareholders' equity.
Chairman Terrence A. Larsen said the year-to-year growth in both fourth
quarter and full-year operating income reflected continued broad strength in
CoreStates' basic businesses.
For the full year, net interest income was up more than 5% as a result of
both moderate growth in average assets and a higher net financial margin. This
reflected the strengthened loan demand that CoreStates experienced during much
of 1993.
Non-interest income from fee-based services were higher in 1993 in three of
the company's four major service fee categories. The fourth category, debit and
credit card fees, was not comparable year-to-year because a major source of such
fees in 1992, electronic payment services, was restructured in December 1992 as
a joint venture with several other banking companies. Both the fees and the
expenses of that business were replaced in CoreStates' income statement with
CoreStates' share of joint venture income, plus preferred stock dividends. The
total was $13.2 million for 1993.
While adoption of FAS 115 had no impact on earnings, it resulted in
classification of approximately $550 million of investment securities in an
"available for sale" category. These securities, formerly reported on the
balance sheet at amortized cost, will be reported at market value under the new
accounting principle, with the adjustment becoming part of equity. After related
tax effects, the change resulted in an increase of approximately $65 million in
shareholders' equity.
Credit quality indicators improved sharply during 1993. Non-performing
assets declined 14.7% from September 30, and at December 31 totaled $252
million, or 1.1% of total assets and 1.5% of total loans plus real estate
foreclosed. Non-performing assets had been
Page 5 of 7
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$387 million a year earlier.
Net charge-offs for the fourth quarter were $21.4 million, compared to
$32.2 million a year earlier. Full year charge-offs were $77.3 million, compared
to $130.2 million in 1992.
Reflecting the improved credit quality, the full-year provision for loan
losses was down to $100.0 million in 1993 from $119.3 million in 1992. The loan
loss reserve at December 31 was $348 million, or 173% of total non-performing
loans.
CoreStates' consolidated total assets at year-end were $23.7 billion,
including consolidated net loans of $16.4 billion. The comparable figures for a
year earlier were $23.7 billion and $15.5 billion, respectively. Consolidated
deposits were $17.0 billion at December 31, 1993, and $17.3 billion a year
earlier.
Shareholders' equity at December 31 was $1.96 billion, reflecting 8.3% of
total assets. The Tier 1 leverage ratio (Tier 1 or core capital as a percentage
of quarterly average assets) was 8.2% for the fourth quarter. Tier 1 capital at
December 31 was 9.3% of risk-adjusted assets and total capital was 13.7% of
risk-adjusted assets, well in excess of regulatory minimums of 4% and 8%,
respectively.
Page 6 of 7
<PAGE>
CoreStates Financial Corp
(in thousands, except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended December 31,
-------------------------------
1993 1992
-------- --------
<S> <C> <C>
Net income $ 85,312 $ 69,107
======== ========
Per Share
- ---------
Net income $0.73 $0.59
===== =====
Average number of shares outstanding 117,269 116,442
======== ========
<CAPTION>
Three Months Ended December 31,
-------------------------------
1993 1992
-------- --------
<S> <C> <C>
Income before cumulative effect of
a change in accounting principle $327,927 $262,404
======== ========
Net income $314,917(a) $181,418(b)
======== ========
Per Share
- ---------
Income before cumulative effect of
a change in accounting principle $2.80 $2.27
===== =====
Net income $2.69(a) $1.57(b)
===== =====
Average number of shares outstanding 117,319 115,600
======== ========
</TABLE>
(a) Reflects the adoption of Statement of Financial Accounting Standards No.
112, "Employers' Accounting for Postemployment Benefits" (FAS 112). As
required under FAS 112, CoreStates recognized the January 1, 1993
transitional liability of $20.0 million pre-tax, $13.0 million after-tax,
as the cumulative effect of a change in accounting principle in the first
quarter of 1993.
(b) Reflects the adoption of Statement of Financial Accounting Standards No.
106, "Employers' Accounting for Postretirement Benefits Other Than
Pensions" (FAS 106). As permitted under FAS 106, CoreStates elected to
recognize immediately the January 1, 1992 transitional liability of $122.7
million pre-tax, $81.0 million after-tax, as the cumulative effect of a
change in accounting principle in the first quarter of 1992.
Page 7 of 7
