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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Exhibit Index is on Page 3
Date of Report (Date of earliest event reported): April 22, 1998
CoreStates Financial Corp
________________________________________________________________
(Exact name of registrant as 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) 973-7488
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__________________________________________________________________
(Former name and former address, if changed since last report)
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ITEM 5. OTHER EVENTS.
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The information set forth in the earnings news release of CoreStates
Financial Corp as Exhibit 99 is incorporated by reference and made a part
hereof.
ITEM 7. EXHIBITS.
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99 CoreStates Financial Corp Earnings News Release dated April 22, 1998.
SIGNATURE
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CORESTATES FINANCIAL CORP
(Registrant)
Dated: April 23, 1998 By /s/ Lydia Hernandez-Velez
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Lydia Hernandez-Velez
Executive Vice President
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Exhibit Index
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Exhibit No. Page
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99 CoreStates Financial Corp Earnings News
Release dated April 22, 1998 4
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CoreStates Financial Corp
Broad and Chestnut Streets
PO Box 7558
Philadelphia, PA 19101-7558
Exhibit 99
Contact Gary Brooten or George Biechler [CORESTATES
(215) 973-3546 LOGO
APPPEARS
For Release Immediately Upon Receipt HERE]
CORESTATES REPORTS FIRST QUARTER EARNINGS
Philadelphia, April 22, 1998--CoreStates Financial Corp today announced
first quarter 1998 net income of $202,910,000 compared to $198,113,000 for the
first quarter of 1997. Earnings per share were a record $1.02 (basic) and $1.01
diluted for the impact of outstanding stock options. This was up approximately
9% from first quarter 1997 earnings per share of 94 cents basic and 93 cents
diluted.
Return on average total assets was 1.76% and return on average
shareholders' equity was 24.69%.
Key components of the first quarter operating earnings were net interest
income of $500,704,000, based on a net financial margin of 4.92%; total non-
interest income of $227,863,000, including a total of $183,758,000 from the five
major categories of revenues from fee-based services; and total non-financial
expenses of $373,257,000.
Total non-performing assets at March 31 were $274 million or 0.78% of total
loans plus real estate foreclosed of 0.57% of total assets. The first quarter
provision for loan losses was $45,000,000. Net charge-offs were $41.4 million,
leaving a total reserve for possible loan losses at March 31 of $638 million or
1.82% of total loans.
Consolidated total assets at March 31 were $48.1 billion, including $35.0
billion of consolidated net loans. Consolidated total deposits were $34.8
billion. The comparable numbers for March 31, 1997, were $45.1 billion, $33.1
billion and $33.1 billion, respectively.
Shareholders' equity at March 31 was $3.5 billion or 7.2% of total assets.
The Tier 1 leverage ratio (Tier 1 or "core" capital as a percentage of quarterly
average assets) was 8.5% for the first quarter. Tier 1 capital at March 31 was
8.8% of risk-adjusted assets and total capital was 12.1% of risk-adjusted
assets, well above the regulatory minimums of 4% and 8% respectively. Average
shares outstanding for the quarter were 199.2 million basic and 201.1 million
diluted. Dual reporting of basic and diluted shares and earnings per share is
required by an accounting rule, FAS 128, that took effect on December 31, 1997.
CoreStates in November 1997 entered into an agreement to be merged into
First Union Corporation. The merger was approved by shareholders of both
companies on February 27, 1998, and last week was approved by the Federal
Reserve Board, subject to an agreement of sale for branches being divested under
a First Union agreement with the Department of Justice. Pending satisfaction of
other conditions of closing, the merger is expected to be consummated by April
30, 1998.
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CORESTATES FINANCIAL CORP
(in thousands, except per share)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
---------------------------
EARNINGS AND DIVIDENDS 1998 1997
- -------------------------------- ------------- ------------
<S> <C> <C>
Net interest income plus
non-interest income........... $ 728,567 $ 741,115
=========== ===========
Net income...................... $ 202,910 $ 198,113
=========== ===========
Net income per common share:
Basic......................... $ 1.02 $ 0.94
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Diluted....................... $ 1.01 $ 0.93
=========== ===========
Common shares outstanding:
Average basic................. 199,245 211,276
=========== ===========
Average diluted............... 201,111 213,162
=========== ===========
Dividends per common share...... $ 0.50 $ 0.47
=========== ===========
SELECTED FINANCIAL RATIOS
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Return on average total assets.. 1.76% 1.82%
Return on average
shareholders' equity.......... 24.69% 21.89%
Net interest margin............. 4.92% 5.47%
</TABLE>
<TABLE>
<CAPTION>
December 31,
FINANCIAL POSITION AT March 31, 1998 1997 March 31,1997
- -------------------------------- ------------------ ----------- -------------
<S> <C> <C> <C>
Assets......................... $48,100,282 $48,460,965 $45,064,613
Loans........................... 34,999,592 34,813,886 33,091,816
Deposits........................ 34,808,280 34,187,890 33,070,611
Shareholders' equity............ 3,457,001 3,237,432 3,442,673
</TABLE>
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