<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1995
Commission file number 0-6879
A. Full title of the plan and the address of the plan, if different from that
of the issuer named below:
CORESTATES SAVINGS PLAN
B. Name of issuer of the securities held pursuant to the plan and the address
of its principal executive office:
CORESTATES FINANCIAL CORP
Centre Square West
1500 Market Street
Philadelphia, PA 19101
<PAGE>
REQUIRED INFORMATION
The following financial statements and exhibits are filed as part of this
report:
(a) Item 4 Financial Statements
Report of Independent Auditors
Statement of Net Assets Available for Benefits as
of December 31, 1995
Statement of Net Assets Available for Benefits as
of December 31, 1994
Statement of Changes in Net Assets Available for Benefits
for the year ended December 31, 1995
Statement of Changes in Net Assets Available for Benefits
for the year ended December 31, 1994
Notes to Financial Statements
Supplemental Schedules
(b) EXHIBIT INDEX
(c) Exhibit - Consent of Independent Auditors
SIGNATURE
Financial statement schedules not included with this report have been omitted
because they are not applicable or the required information is shown in the
financial statements or notes thereto.
<PAGE>
CoreStates Savings Plan
Financial Statements and
Supplemental Schedules
Years ended December 31, 1995 and 1994
Contents
Report of Independent Auditors.....................................1
Audited Financial Statements
Statement of Net Assets Available for Benefits, with Fund
Information, December 31, 1995...................................2
Statement of Net Assets Available for Benefits, with
Fund Information, December 31, 1994..............................3
Statement of Changes in Net Assets Available for Benefits,
with Fund Information, Year ended December 31, 1995..............4
Statement of Changes in Net Assets Available for Benefits,
with Fund Information, Year ended December 31, 1994..............5
Notes to Financial Statements......................................6
Supplemental Schedules
Assets Held for Investment Purposes................................14
Reportable Transactions............................................15
<PAGE>
[LETTERHEAD OF ERNST & YOUNG LLP APPEARS HERE]
Report of Independent Auditors
The Board of Directors
CoreStates Financial Corp
We have audited the accompanying statements of net assets available for benefits
of the Corestates Savings Plan as of December 31, 1995 and 1994, and the related
statements of changes in net assets available for benefits for the years then
ended. These financial statements are the responsibility of the Plan's
management. Our responsibility is to express on 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 the 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 Plan at
December 31, 1995 and 1994 and the changes in its 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 accompanying supplemental schedules
of assets held for investment purposes as of December 31, 1995 and reportable
transactions for the year then ended, are presented for purposes of complying
with the Department of Labor's Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of 1974, and are
not a required part of the basic financial statements. The Fund information in
the statement of net assets available for benefits and the statement of changes
in net assets available for benefits is presented for purposes of additional
analysis rather than to present the net assets available for benefits and
changes in net assets available for benefits of each fund. The supplemental
schedules and Fund information have been subjected to the auditing procedures
applied in our audit of the 1995 financial statements and, in our opinion, are
fairly stated in all material respects in relation to the 1995 financial
statements taken as a whole.
Philadelphia, Pennyslvania
May 23, 1996 /s/ Ernst and Young LLP
<PAGE>
CoreStates Savings Plan
Statement of Net Assets Available for Benefits, With Fund Information
December 31, 1995
<TABLE>
<CAPTION>
Fund Information
-------------------------------------------------------------------
CoreStates
Financial CoreStates CoreStates CoreStates
Corp Common Equity Bond Equity Index
Total Stock Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Assets
Investments, at fair value (cost $263,298,301):
CoreStates Financial Corp Common Stock $ 155,269,279 $ 155,269,279 $ -- $ -- $ --
Mutual funds 172,000,187 2,864,798 53,233,595 18,099,453 7,499,044
Participants' notes receivable 15,262,405
----------------------------------------------------------------------------------
Total investments 342,531,871 158,134,077 53,233,595 18,099,453 7,499,044
Receivables:
Contribution Receivable 1,064,101 394,904 215,412 75,421 53,360
Due from broker 2,220,082 -- 578,541 735,608 --
Accrued investment income 2,260,375 1,729,692 69,340 91,292 35,578
Interfund receivable 1,402,863 101,270 251,793 16,993 380,305
Cash and cash equivalents 225,310 8,711 7,856 2,772 294
----------------------------------------------------------------------------------
Total assets 349,704,602 160,368,654 54,356,537 19,021,539 7,968,581
Liabilities
Interfund payable 1,402,863 290,195 98,784 253,896 5,323
Due to broker 526,968 130,628 -- -- 321,593
----------------------------------------------------------------------------------
Total liabilities 1,929,831 420,823 98,784 253,896 326,916
----------------------------------------------------------------------------------
Net assets available for benefits $ 347,774,771 $ 159,947,831 $ 54,257,753 $ 18,767,643 $ 7,641,665
===================================================================================
</TABLE>
<TABLE>
<CAPTION>
Fund Information
----------------------------------------------------------------------------------
CoreStates CoreStates CoreStates Employee
Liquidity Balanced International Loan
Fund Fund Growth Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
Investments, at fair value (cost $263,298,301):
CoreStates Financial Corp Common Stock $ -- $ -- $ -- $ --
Mutual funds 45,022,599 42,730,616 2,550,082 --
Participants' notes receivable -- -- -- 15,262,405
----------------------------------------------------------------------------------
Total investments 45,022,599 42,730,616 2,550,082 15,262,405
Receivables:
Contribution Receivable 134,436 168,697 21,871 --
Due from broker -- 905,933 -- --
Accrued investment income -- 281,043 53,430 --
Interfund receivable 41,932 49,178 125,845 435,547
Cash and cash equivalents 202,974 2,522 181 --
----------------------------------------------------------------------------------
Total assets 45,401,941 44,137,989 2,751,409 15,697,952
Liabilities
Interfund payable 452,427 82,431 2,318 217,489
Due to broker -- -- 74,747 --
----------------------------------------------------------------------------------
Total liabilities 452,427 82,431 77,065 217,489
----------------------------------------------------------------------------------
Net assets available for benefits $ 44,949,514 $ 44,055,558 $ 2,674,344 $ 15,480,463
==================================================================================
</TABLE>
See accompanying notes.
2
<PAGE>
CoreStates Savings Plan
Statement of Net Assets Available for Benefits, With Fund Information
December 31, 1994
<TABLE>
<CAPTION>
Fund Information
-----------------------------------------------------------------------
CoreStates
Financial CoreStates CoreStates CoreStates
Corp Common Equity Bond Equity Index
Total Stock Fund Fund Fund Fund
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Assets
Investments, at fair value (cost $220,630,769):
CoreStates Financial Corp Common Stock $ 99,233,103 $ 99,233,103 $ - $ - -
Mutual funds 125,943,056 807,645 36,073,737 15,046,882 942,903
Participants' notes receivable 14,167,300 - - - -
--------------------------------------------------------------------------------
Total investments 239,343,459 100,040,748 36,073,737 15,046,882 942,903
Due from broker 3,088,865 - 1,623,742 511,301 -
Accrued investment income 1,821,014 1,289,076 125,906 86,269 -
Interfund receivable 2,915,764 356,466 - - 962,392
Cash and cash equivalents 200,287 4,818 1,333 625 -
--------------------------------------------------------------------------------
Total Assets 247,369,389 101,691,108 37,824,718 15,645,077 1,905,295
Liabilities
Interfund payable 2,915,764 92,746 1,489,804 456,399 -
Due to broker 2,502,933 388,851 - - 942,903
-------------------------------------------------------------------------------
Total Liabilities 5,418,697 481,597 $ 1,489,804 456,399 942,903
-------------------------------------------------------------------------------
Net assets available for benefits $ 241,950,692 $ 101,209,511 $ 36,334,914 $ 15,188,678 962,392
===============================================================================
</TABLE>
See accompanying notes
<TABLE>
<CAPTION>
Fund Information
--------------------------------------------------------------------------
CoreStates CoreStates CoreStates Employee
Liquidity Balanced International Loan
Fund Fund Growth Fund Fund
--------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
Investments, at fair value (cost $220,630,769);
CoreStates Financial Corp Common Stock $ - $ - $ - $ -
Mutual funds 41,478,529 30,422,181 1,171,179 -
Participants' notes receivable - - - 14,167,300
--------------------------------------------------------------------------
Total investments 41,478,529 30,422,181 1,171,179 14,167,300
Due from broker - 953,822 - -
Accrued investment income - 319,763 - -
Interfund receivable 126,130 - 1,194,480 276,296
Cash and cash equivalents 191,184 2,327 - -
--------------------------------------------------------------------------
Total Assets 41,795,843 31,698,093 2,365,659 14,443,596
Liabilities
Interfund payable 51,864 824,951 - -
Due to broker - - 1,171,179 -
--------------------------------------------------------------------------
Total Liabilities 51,864 824,951 1,171,179 -
--------------------------------------------------------------------------
Net assets available for benefits $ 41,743,979 $ 30,873,142 $ 1,194,480 $ 14,443,596
==========================================================================
</TABLE>
See accompanying notes
3
<PAGE>
CoreStates Savings Plan
Statement of Changes in Net Assets Available for Benefits, With Fund Information
Year ended December 31, 1995
<TABLE>
<CAPTION>
Fund Information
-------------------------------------------------------------------------------
CoreStates
Financial CoreStates CoreStates CoreStates CoreStates
Corp Common Equity Bond Equity Index Liquidity
Total Stock Fund Fund Fund Fund Fund
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Employer $ 14,962,993 $ 6,524,829 $ 2,648,631 $ 998,211 $ 380,845 $ 1,982,844
Employee 17,402,508 6,127,377 3,644,446 1,294,321 601,516 2,539,372
-------------------------------------------------------------------------------------------
Total contributions 32,365,501 12,652,206 6,293,077 2,292,532 982,361 4,522,216
Investment income:
Interest 757,563 -- -- -- -- --
Dividends on CoreStates
Financial Corp Common
Stock 5,951,920 5,951,920 -- -- -- --
Dividend income 4,411,315 71,431 268,078 1,155,557 7,353 2,747,477
Distribution of mutual
funds' income 3,820,053 -- 1,740,641 -- 297,860 --
-------------------------------------------------------------------------------------------
Total investment income 14,940,851 6,023,351 2,008,719 1,155,557 305,213 2,747,477
Net appreciation in fair
value of investments 69,669,824 47,411,963 12,453,132 879,214 847,648 --
Participants' withdrawals (53,885,646) (6,291,910) (9,764) (800) -- --
Transfer from IBI Savings
Plan 13,535,481 3,142,385 2,223,828 1,227,437 377,337 4,632,693
Transfer from IBI Capital
Accumulation Savings Plan 23,476,385 4,672,250 3,876,243 1,692,315 536,084 10,206,238
Participants' interfund
transfers -- (8,078,007) (8,922,396) (3,667,290) 3,630,630 (18,903,089)
Other (disbursements) receipts 5,721,683 (793,918) -- -- -- --
-------------------------------------------------------------------------------------------
Increase in net assets
available for benefits during
the year 105,824,079 58,738,320 17,922,839 3,578,965 6,679,273 3,205,535
Net assets available for benefits
at beginning of year 241,950,692 101,209,511 36,334,914 15,188,678 962,392 41,743,979
-------------------------------------------------------------------------------------------
Net assets available for benefits
at end of year $347,774,771 $159,947,831 $ 54,257,753 $ 18,767,643 $ 7,641,665 $ 44,949,514
===========================================================================================
<CAPTION>
CoreStates
CoreStates International Employee
Balanced Growth Loan Distribution
Fund Fund Fund Fund
-------------------------------------------------------------
<S> <C> <C> <C> <C>
Contributions:
Employer $ 2,183,367 $ 244,266 $ -- $ --
Employee 2,807,843 387,633 -- --
-------------------------------------------------------------
Total contributions 4,991,210 631,899 -- --
Investment income:
Interest -- -- 757,563 --
Dividends on CoreStates
Financial Corp Common
Stock -- -- -- --
Dividend income 158,580 2,705 134
Distribution of mutual
funds' income 1,716,185 65,367 -- --
-------------------------------------------------------------
Total investment income 1,874,765 68,072 757,697
Net appreciation in fair
value of investments 7,881,557 196,310 -- --
Participants' withdrawals -- (6,841,220) (40,741,952)
Transfer from IBI Savings
Plan 1,504,501 427,300 -- --
Transfer from IBI Capital
Accumulation Savings Plan 2,208,981 284,274 -- --
Participants' interfund
transfers (5,278,598) (127,991) 593,929 40,752,812
Other (disbursements) receipts -- -- 6,526,461 (10,860)
-------------------------------------------------------------
Increase in net assets
available for benefits during
the year 13,182,416 1,479,864 1,036,867
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CoreStates
CoreStates International Employee
Balanced Growth Loan Distribution
Fund Fund Fund Fund
-------------------------------------------------------------
<S> <C> <C> <C> <C>
Net assets available for benefits
at beginning of year 30,873,142 1,194,480 14,443,596 --
Net assets available for benefits
at end of year $ 44,055,558 $ 2,674,344 $ 15,480,463 $
=============================================================
</TABLE>
See accompanying notes.
4
<PAGE>
CoreStates Savings Plan
Statement of Changes in Net Assets Available for Benefits, With Fund Information
Year ended December 31, 1994
<TABLE>
<CAPTION>
Fund Information
----------------------------------------------------------
CoreStates
Financial CoreStates CoreStates CoreStates
Corp Common Equity Bond Equity Index
Total Stock Fund Fund Fund Fund
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Contributions:
Employer $ 13,083,973 $ 4,578,950 $ 2,956,576 $ 1,056,618 $ -
Employee 17,701,823 5,989,886 4,217,262 1,428,333 -
-------------------------------------------------------------------------
Total contributions 30,785,796 10,568,836 7,173,838 2,484,951 -
Investment income:
Interest 651,432 842 - - -
Dividends on CoreStates Financial Corp
Common stock 4,528,158 4,528,158 - - -
Dividend income 2,843,076 25,710 191,789 779,217 -
Distribution of mutual funds' income 1,244,182 - 216,691 2,854 -
-------------------------------------------------------------------------
Total investment income 9,266,848 4,554,710 408,480 782,071 -
Net depreciation in fair value of investments (18,966,107) (1,907,487) (14,146,136) (850,059) -
Participants' withdrawals (27,707,738) (2,926,298) - - -
Transfer from Constellation Savings Plan 6,640,533 1,869,114 767,423 511,511 -
Transfer from Inter-Community Savings Plan 145,672 64,837 28,232 9,288 -
Participants' interfund transfers - (3,581,357) (6,196,812) (2,587,860) 962,392
Other (disbursements) receipts 7,943,137 25,671 (5,889) 3,822 -
-------------------------------------------------------------------------
Increase (decrease) in net assets available
for benefits during the year 8,108,141 8,668,026 (11,970,864) 353,724 962,392
Net assets available for benefits at
beginning of year 233,842,551 92,541,485 48,305,778 14,834,954 -
-------------------------------------------------------------------------
Net assets available for benefits at end of year $ 241,950,692 $101,209,511 $ 36,334,914 $ 15,188,678 $ 962,392
=========================================================================
<CAPTION>
Fund Information
------------------------------------------------------------------------------
CoreStates
CoreStates CoreStates International Employee
Liquidity Balanced Growth Loan Distribution
Fund Fund Fund Fund Fund
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Contributions:
Employer $ 2,075,068 $ 2,416,761 $ - $ - $ -
Employee 2,662,390 3,403,952 - - -
------------------------------------------------------------------------------
Total contributions 4,737,458 5,820,713 - - -
Investment income:
Interest 425 - - 650,165 -
Dividends on CoreStates Financial Corp
Common stock - - - - -
Dividend income 1,596,803 249,557 - - -
Distribution of mutual funds' income - 1,024,637 - - -
------------------------------------------------------------------------------
Total investment income 1,597,228 1,274,194 - 650,165 -
Net depreciation in fair value of investments - (2,062,425) - - -
Participants' withdrawals - - - (8,271,588) (16,509,852)
Transfer from Constellation Savings Plan 2,402,828 1,089,657 - - -
Transfer from Inter-Community Savings Plan 22,257 21,058 - - -
Participants' interfund transfers (4,722,783) (4,090,496) 1,194,480 2,500,967 16,521,469
Other (disbursements) receipts 3,021 (6,192) - 7,934,321 (11,617)
------------------------------------------------------------------------------
Increase (decrease) in net assets available
for benefits during the year 4,040,009 2,046,509 1,194,480 2,813,865 -
Net assets available for benefits at
beginning of year 37,703,970 28,826,633 - 11,629,731 -
------------------------------------------------------------------------------
Net assets available for benefits at end of year $ 41,743,979 $ 30,873,142 $ 1,194,480 $ 14,443,596 $ -
==============================================================================
</TABLE>
See accompanying notes.
<PAGE>
CoreStates Savings Plan
Notes to Financial Statements
Years ended December 31, 1995 and 1994
1. Description of the Plan
The following brief description of the Plan is provided for general information
only. Participants should refer to the Plan agreement for more complete
information.
General
The Plan is a defined contribution, profit-sharing plan which covers qualified
employees of CoreStates Financial Corp and certain affiliated companies ("the
Company"). The Plan is subject to the provisions of the Employee Retirement
Income Security Act of 1974 (ERISA).
Contributions
Employee
The Plan provides for employee contributions on either an after-tax basis or
a before-tax basis (up to $9,240 in 1995 and 1994) equal to any whole
percentage of the participant's compensation up to 10% (5% is considered a
basic contribution and amounts in excess of 5% are considered an optional
contribution) for each payroll period.
Employer
The Company makes a matching contribution to the Plan on behalf of each
participant who has made basic contributions (up to 5%) for each payroll
period. The Employer contribution allocated to the participant's account for
a given payroll period shall be as follows:
<TABLE>
<CAPTION>
Participant's Years Employer
of Vesting Service Matching Contribution
---------------------------------------------------------------
<S> <C>
Fewer than 2 years 50%
At least 2 years but fewer 75%
than 3 years
3 years or more 100%
</TABLE>
In 1995, the Company made a special qualified non-elective contribution to
the CoreStates Common Stock Fund within the Plan for all eligible Plan
participants who were defined as non-highly compensated employees. The
contribution was made in an amount sufficient to purchase five shares of
stock for each recipient, and totaled $1,813,967 which is reported as an
Employer contribution on the Statement of Changes in Net Assets Available for
Benefits for 1995.
6
<PAGE>
CoreStates Savings Plan
Notes to Financial Statements (continued)
1. Description of the Plan (continued)
Vesting
Employee contributions, rollovers, and qualified voluntary employee contribution
accounts, as affected by investment results, are fully vested at all times.
Employer contributions, also as affected by investment results, are fully vested
upon termination of employment because of normal retirement, death, or if the
participant incurs a disability.
In all other cases, Employer contributions, other than qualified non-elective
contributions, as affected by investment results, vest as follows:
<TABLE>
<CAPTION>
Years of Vesting Service Percent Vested
--------------------------------------------------------
<S> <C>
Fewer than 2 years 0%
At least 2 years but fewer 50%
than 3 years
3 years or more 100%
</TABLE>
Upon the participant's employment termination date, that portion of the
Employer's contributions applicable to such participant which is not vested is
forfeited and applied to reduce future Employer contributions.
Unvested portions are restored to participant's accounts if the participant is
reemployed by the Company before incurring a five-year break in service.
Expenses
The expenses of the Plan, including but not limited to legal and accounting
fees, shall be paid by the Plan unless paid by the Company.
Payment of Benefits
Upon termination of employment, a participant may receive vested benefits as a
lump-sum payment or if the participant's vested accrued benefit exceeds $3,500,
the participant may elect to receive equal annual installments over a period not
exceeding ten years. Also, a participant may elect to receive a distribution
from the investment in the CoreStates Common Stock Fund in the form of
CoreStates common stock.
7
<PAGE>
CoreStates Savings Plan
Notes to Financial Statements (continued)
1. Description of the Plan (continued)
Loans
Active participants, terminated participants and beneficiaries with accrued
benefits under the Plan, may borrow funds from the Plan subject to requirements
of the Plan. Loans advanced against employees' vested benefits in the Plan are
deducted from the amount of any benefits which are payable to the participant
upon termination.
Withdrawals
A participant shall be permitted to withdraw all or a portion of the amount in
the participant's after-tax contribution account subject to the restrictions or
penalties as set forth in the Plan.
Participants who apply for a hardship withdrawal under IRS regulations, or who
cease to be a participant in the Plan, may receive their deferred account
balance in full.
Amounts allocated to withdrawn participants for benefit claims that have been
processed and approved for payment prior to year-end but not yet paid are
recorded on Form 5500. In accordance with GAAP this amount is properly excluded
from participants' withdrawals on the statement of Changes in Net Assets
Available for Benefits. The amount payable to withdrawn participants at
December 31, 1995 and December 31, 1994 equals $6,548,000 and $4,880,000,
respectively.
Investment Options
CoreStates Bank, N.A. (CBNA) serves as Trustee for the Plan. Seven funds, as of
December 31, 1995, are maintained under the Plan for accumulation and investment
of the participants' account. The funds are as follows:
A. CoreStates Financial Corp Common Stock Fund invests primarily in common
stock of CoreStates Financial Corp, the parent company of CBNA;
B. CoreStates Equity Fund invests principally in the CoreFund Growth Equity
Reserve Rebate, a mutual fund of CoreFund, Inc. for which CoreStates
Financial Corp provides investment advisory and custodial services;
C. CoreStates Bond Fund invests principally in the CoreFund Intermediate Bond
Fund Reserve Rebate, a mutual fund of CoreFund, Inc. for which CoreStates
Financial Corp provides investment advisory and custodial services;
8
<PAGE>
CoreStates Savings Plan
Notes to Financial Statements (continued)
1. Description of the Plan (continued)
Investment Options (continued)
D. CoreStates Liquidity Fund invests in the CoreFund Cash Reserve Fund Rebate,
a mutual fund of CoreFund, Inc. for which CoreStates Financial Corp provides
investment advisory and custodial services;
E. CoreStates Balanced Fund invests principally in the CoreFund Balanced Rebate
Fund Series A, a mutual fund of CoreFund, Inc. for which CoreStates
Financial Corp provides investment advisory and custodial services;
F. CoreStates Equity Index Fund invests principally in the CoreFund Equity
Index Fund, a mutual fund of CoreFund, Inc. for which CoreStates Financial
Corp provides investment advisory and custodial services;
G. CoreStates International Growth Fund invests principally in the CoreFund
International Growth Fund, a mutual fund of CoreFund, Inc. for which
CoreStates Financial Corp provides investment advisory and custodial
services.
2. Summary of Significant Accounting Policies
Basis of Investments
Investments are stated at fair value. Cost of investments sold is determined on
an average historical cost basis. Loans are carried at the unpaid principal
balance.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts reported in the financial statements and accompanying notes.
Actual results could differ from those estimates.
9
<PAGE>
CoreStates Savings Plan
Notes to Financial Statements (continued)
3. Investments
Investments are comprised of the following:
<TABLE>
<CAPTION>
Shares Average Fair
or Units Cost Value
-------------------------------------------------
<S> <C> <C> <C>
December 31, 1995
CoreStates Financial Corp
Common Stock Fund:
Common Stock 4,032,226 shares $ 94,131,414 $ 155,269,279
CoreFund Cash Reserve A 2,864,798 units 2,864,798 2,864,798
-----------------------------
96,996,212 158,134,077
CoreStates Equity Fund:
CoreFund Cash Reserve A 552,088 units 552,088 552,088
CoreFund Growth Equity
Reserve Rebate+ 4,258,812 units 42,310,632 52,681,507
-----------------------------
42,862,720 53,233,595
CoreStates Bond Fund:
CoreFund Cash Reserve A 236,018 units 236,018 236,018
CoreFund Intermediate Bond
Fund Rebate+ 1,791,719 units 17,638,993 17,863,434
-----------------------------
17,875,011 18,099,452
CoreStates Liquidity Fund:
CoreFund Cash Reserve A 45,022,599 units 45,022,599 45,022,599
-----------------------------
45,022,599 45,022,599
CoreStates Balanced Fund:
CoreFund Cash Reserve A 120,572 units 120,572 120,572
CoreFund Balanced Rebate
Fund Series A+ 3,509,888 units 36,099,910 42,610,044
-----------------------------
36,220,482 42,730,616
CoreStates Equity Index Fund:
CoreFund Cash Reserve A 51,422 units 51,422 51,422
CoreFund Equity Index Fund A 285,131 units 6,635,377 7,447,623
-----------------------------
6,686,799 7,499,045
</TABLE>
10
<PAGE>
CoreStates Savings Plan
Notes to Financial Statements (continued)
3. Investments (continued)
<TABLE>
<CAPTION>
Shares Average Fair
or Units Cost Value
----------------------------------------------
<S> <C> <C> <C>
December 31, 1995 (continued)
CoreFund International
Growth Fund A 193,732 units $ 2,346,351 $ 2,524,360
----------------------------
2,372,073 2,550,082
Employee Loan Fund:
Participant Notes Receivable,
with interest rates ranging
from 5.5% to 11% 15,262,405 15,262,405
----------------------------
Total investments $263,298,301 $342,531,871
============================
December 31, 1994
CoreStates Financial Corp
Common Stock Fund:
Common Stock 3,816,159 shares $ 78,547,410 $ 99,233,103
CoreFund Cash Reserve
Rebate 807,645 units 807,645 807,645
----------------------------
79,355,055 100,040,748
CoreStates Equity Fund:
CoreFund Cash Reserve Rebate 177,639 units $ 177,639 $ 177,639
CoreFund Growth Equity
Reserve Rebate+ 3,786,508 units 36,469,348 35,896,098
----------------------------
36,646,987 36,073,737
CoreStates Bond Fund:
CoreFund Cash Reserve Rebate 128,355 units 128,355 128,355
CoreFund Intermediate Bond Fund
Rebate+ 1,572,026 units 15,583,571 14,918,527
----------------------------
15,711,926 15,046,882
CoreStates Liquidity Fund:
CoreFund Cash Reserve Rebate+ 41,478,529 units 41,478,529 41,478,529
----------------------------
41,478,529 41,478,529
CoreStates Balanced Fund:
CoreFund Cash Reserve Rebate 124,552 units 124,552 124,552
CoreFund Balanced Rebate Fund
Series A+ 3,066,561 units 31,032,338 30,297,629
----------------------------
31,156,890 30,422,181
CoreStates Equity Index Fund:
CoreFund Equity Index Fund A 46,887 units 942,903 942,903
----------------------------
942,903 942,903
</TABLE>
11
<PAGE>
CoreStates Savings Plan
Notes to Financial Statements (continued)
3. Investments (continued)
<TABLE>
<CAPTION>
Shares Average Fair
or Units Cost Value
--------------------------------------------------
<S> <C> <C> <C>
December 31, 1994 (continued)
CoreStates International
Growth Fund:
CoreFund International
Growth Fund A 97,113 units $ 1,171,179 $ 1,171,179
---------------------------------
1,171,179 1,171,179
Employee Loan Fund:
Participant Notes
Receivable, with
interest rates ranging from
5.5% to 11%+ 14,167,300 14,167,300
---------------------------------
Total investments $ 220,630,769 $ 239,343,459
====================================
</TABLE>
+ Represents greater than 5% of net assets available for benefits.
Fair values are determined: (1) for CoreStates Financial Corp Common Stock on
the basis of the reported bid price in the over-the-counter securities market as
reported by NYSE; (2) short-term liquid assets are valued at amortized cost
which approximates fair value; and (3) CoreFund mutual funds are valued at net
asset value at the close of business on the last business day of the Plan year.
The Plan's investments are held by a bank-administered trust fund. During 1995
and 1994, the Plan's investments (including investments bought, sold, as well as
held during the year) appreciated (depreciated) in fair value as follows:
<TABLE>
<CAPTION>
Net Appreciation
(Depreciation) in
Fair Value Fair Value at
During the Year End of Year
------------------------------------
<S> <C> <C>
Year ended December 31, 1995:
Fair value as determined by quoted
market prices:
Common stock:
Employer company $ 47,411,963 $ 155,269,279
Mutual funds 22,257,861 172,000,187
Participant notes receivable - 15,262,405
------------------------------------
$ 69,669,824 $ 342,531,871
====================================
</TABLE>
12
<PAGE>
Notes to Financial Statements (continued)
3. Investments (continued)
<TABLE>
<CAPTION>
Net Appreciation
(Depreciation) in
Fair Value Fair Value at
During the Year End of Year
----------------------------------------
<S> <C> <C>
Year ended December 31, 1994:
Fair value as determined by quoted
market prices:
Common stock:
Employer company $ (1,907,487) $ 99,233,103
Mutual funds (17,058,620) 125,953,056
Participant notes receivable - 14,167,300
----------------------------------------
$ (18,966,107) $ 239,353,459
========================================
</TABLE>
4. Plan Mergers
As a result of the June 27, 1994 acquisition by CoreStates Financial Corp of
Independence Bancorp, Inc., (IBI), participants of the Independence Savings Plan
and Independence Capital Accumulation Plan became eligible for coverage under
the CoreStates Savings Plan effective September 1, 1994. The remaining net
assets (approximately $ 13.5 million as of December 31, 1994) of the
Independence Savings Plan were transferred to the CoreStates Savings Plan during
1995. Eligible participants of the Independence Capital Accumulation Plan became
eligible for coverage under the CoreStates Savings Plan effective January 1,
1995. All remaining assets (approximately $23.5 million as of December 31, 1994)
of the Independence Capital Accumulation Plan were transferred into the
CoreStates Savings Plan during 1995.
5. Income Tax Status
The Internal Revenue Service has ruled that the Plan qualifies under Section
401(a) of the Internal Revenue Code (IRC) and, therefore, the related trust is
not subject to tax under present income tax law. Once qualified, the Plan is
required to operate in conformity with the IRC to maintain its qualification.
The Plan has subsequently been amended. Management is not aware of any course of
action or series of events that have occurred that might adversely affect the
Plan's qualified status.
13
<PAGE>
Supplemental Schedules
<PAGE>
CoreStates Savings Plan
Assets Held for Investment Purposes
December 31, 1995
<TABLE>
<CAPTION>
Description Shares or Units Average Cost Fair Value
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
CoreStates Financial Corp*
Common Stock 4,032,226 shares $ 94,131,414 $ 155,269,279
CoreFund* Balanced Rebate
Fund Series A 3,509,888 units 36,099,910 42,610,044
CoreFund* Cash Reserve A 48,873,219 units 48,873,219 48,873,219
CoreFund* Growth Equity
Reserve Rebate 3,911,019 units 42,310,632 52,681,507
CoreFund* Intermediate Bond
Fund Rebate 18,581,219 units 17,638,993 17,863,434
CoreFund* Equity Index
Fund A 285,131 units 6,635,377 7,447,623
CoreFund* International
Growth Fund A 193,632 units 2,346,351 2,524,360
Participant Notes
Receivable, with
interest rates ranging
from 5.5% to 11.0% 15,262,405 15,262,405
------------------------------
Total investments $ 263,298,301 $ 342,531,871
==============================
</TABLE>
*Indicates a party-in-interest to the Plan.
14
<PAGE>
CoreStates Savings Plan
Reportable Transactions
December 31, 1995
<TABLE>
<CAPTION>
(A) (A)
Identity of Description Purchase Selling Gain
Parties Involved of Assets Price Price (Loss)
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Category I--A single transaction in excess of 5% of plan assets
- --------------------------------------------------------------
CoreFund Cash Reserve Rebate Sold 49,210,387 units $ 49,210,387 $ --
CoreFund Cash Reserve Series A Purchased 49,210,387 units $ 49,210,387
</TABLE>
15
<PAGE>
CoreStates Savings Plan
Reportable Transactions (continued)
December 31, 1995
<TABLE>
<CAPTION>
(A) (A)
Identity of Description Purchase Selling Gain
Parties Involved of Assets Price Price (Loss)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Category III--A series of transactions in a security issue
- ----------------------------------------------------------
aggregating in excess of 5% of plan assets
------------------------------------------
CoreFund Cash Reserve Series A Purchased 66,910,690 units in 119 transactions;
sold 18,037,471 units in 99 transactions $ 66,910,690 $ 18,037,471 $ --
CoreFund Balanced Fund Series A Purchased 11,085,627 units in 41 transactions;
sold 591,169 units in 13 transactions 11,085,627 6,654,769 636,714
CoreStates Financial Corp Purchased 1,023,597 units in 95 transactions;
sold 479,551 units in 65 transactions 32,928,014 23,509,882 6,601,255
CoreRund Cash Reserve Rebate
Fund Purchased 66,743,652 units in 365 tansactions;
sold 109,460,372 units in 310 transactions 66,743,652 109,460,372 --
</TABLE>
There were no Category II or IV transactions during the year ended
December 31, 1995
(A) Commissions and fees related to purchases and sales of investments are
included in the cost of the investment or the proceeds from the sale and
are not separately indentified.
16
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
plan administrator has duly caused this annual report to be signed on its behalf
by the undersigned hereunto authorized.
CORESTATES SAVINGS PLAN
Date: June 23, 1996 By:/s/ Vik Dewan
------------------------
Vik Dewan
<PAGE>
EXHIBIT INDEX
Consent of Independent Auditors
<PAGE>
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statement (Form
S-8 No.33-32934) pertaining to CoreStates Savings Plan of CoreStates Financial
Corp of our report dated May 23, 1996, with respect to the financial statements
and schedules of the CoreStates Savings Plan included in this Annual Report
(Form 11-K) for the year ended December 31, 1995.
Ernst & Young LLP
Philadelphia, Pennsylvania
June 23, 1996
