SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended March 31, 1994 Commission File No. 1-7436
REPUBLIC NEW YORK CORPORATION
(Exact name of registrant specified in its charter)
Maryland 13-2764867
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
452 Fifth Avenue, New York, New York 10018
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 525-6100
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes.X.. No....
Number of shares outstanding of the issuer's common stock, as of April 30,
1994: 52,463,963 shares.
REPUBLIC NEW YORK CORPORATION AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION
Page No.
Item 1. Financial Statements:
Consolidated Statements of Condition - Unaudited
March 31, 1994 and December 31, 1993 2
Consolidated Statements of Income - Unaudited
Three-Months Ended March 31, 1994 and 1993 3
Consolidated Statements of Cash Flows - Unaudited
Three-Months Ended March 31, 1994 and 1993 4
Notes to Consolidated Financial Statements 5
Item 2. Management's Discussion and Analysis 6-11
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 12
The information contained in the financial statements furnished in
this report is unaudited. However, in the opinion of management, all
adjustments, consisting of normal recurring accruals, necessary for a
fair presentation of the results of operations for the interim periods
presented, have been included.
-1-
ITEM 1. FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
REPUBLIC NEW YORK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION
UNAUDITED
(Dollars in thousands)
March 31, December 31,
1994 1993
<S> <C> <C>
Assets
Cash and due from banks $ 602,263 $ 636,633
Interest-bearing deposits with banks 5,505,088 5,346,647
Precious metals 1,521,937 1,117,610
Securities held to maturity (approximate market
value of $1,986,239 in 1994 and $2,088,805 in 1993) 1,984,730 1,992,847
Securities available for sale (at approximate market
value) 12,601,033 12,956,946
Total investment securities 14,585,763 14,949,793
Trading account assets (note 1) 2,954,056 1,194,629
Federal funds sold and securities purchased
under resale agreements 2,159,596 2,322,465
Loans (net of unearned income of $92,137 in 1994
and $94,825 in 1993) 10,051,994 9,508,558
Allowance for possible loan losses (313,416) (311,855)
Loans (net) 9,738,578 9,196,703
Customers' liability on acceptances 1,314,756 1,134,294
Accounts receivable and accrued interest 2,095,877 2,117,879
Investment in affiliate 581,395 625,333
Premises and equipment 398,632 399,626
Other assets 404,675 451,860
Total assets $41,862,616 $39,493,472
Liabilities and Stockholders' Equity
Noninterest-bearing deposits:
In domestic offices $ 1,311,338 $ 1,427,518
In foreign offices 142,574 135,251
Interest-bearing deposits:
In domestic offices 8,648,135 8,724,797
In foreign offices 12,037,254 12,513,684
Total deposits 22,139,301 22,801,250
Trading account liabilities (note 1) 2,484,177 177,475
Short-term borrowings (note 2) 5,879,697 4,164,419
Acceptances outstanding 1,315,706 1,137,636
Accounts payable and accrued expenses 2,040,936 2,873,903
Due to factored clients 558,558 614,549
Other liabilities 95,769 122,203
Long-term debt 2,628,242 2,582,875
Subordinated long-term debt and perpetual
capital notes 2,205,674 2,271,940
Stockholders' equity:
Cumulative preferred stock, no par value
8,131,000 shares outstanding 556,425 556,425
Common stock, $5 par value
150,000,000 shares authorized; 52,475,051
shares outstanding in 1994 and 52,703,271 in 1993 262,375 263,516
Surplus 452,427 459,713
Retained earnings 1,265,093 1,204,818
Net unrealized gain (loss) on securities available
for sale, net of taxes (21,764) 262,750
Total stockholders' equity 2,514,556 2,747,222
Total liabilities and stockholders' equity $41,862,616 $39,493,472
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
-2-
<TABLE>
<CAPTION>
REPUBLIC NEW YORK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
UNAUDITED
(In thousands except per share data)
Three Months Ended
March 31,
1994 1993
<S> <C> <C>
INTEREST INCOME:
Interest and fees on loans $165,306 $149,155
Interest on deposits with banks 53,322 94,035
Interest and dividends on investment securities:
Taxable 218,443 216,685
Exempt from federal income taxes 17,499 15,837
Interest on trading account assets 18,447 8,718
Interest on federal funds sold and securities
purchased under resale agreements 11,312 7,049
Total interest income 484,329 491,479
INTEREST EXPENSE:
Interest on deposits 168,027 175,647
Interest on short-term borrowings 53,214 55,483
Interest on long-term debt 64,902 68,864
Total interest expense 286,143 299,994
NET INTEREST INCOME 198,186 191,485
Provision for loan losses 10,000 25,000
Net interest income after provision for
loan losses 188,186 166,485
OTHER OPERATING INCOME:
Income from precious metals 13,181 5,484
Foreign exchange trading income 22,332 24,979
Trading account profits and commissions 13,243 8,764
Investment securities gains (losses), net 3,088 (86)
Net loss on loans sold or held for sale (500) (675)
Commission income 17,500 9,429
Equity in earnings of affiliate 21,110 13,302
Other income 14,591 19,779
Total other operating income 104,545 80,976
OTHER OPERATING EXPENSES:
Salaries 56,791 48,237
Employee benefits 38,812 31,737
Occupancy, net 13,986 11,767
Other expenses 66,339 55,124
Total other operating expenses 175,928 146,865
INCOME BEFORE INCOME TAXES 116,803 100,596
Income taxes 37,024 31,851
NET INCOME $ 79,779 $ 68,745
NET INCOME APPLICABLE TO COMMON STOCK $ 72,695 $ 61,580
Net income per common share:
Primary $ 1.38 $ 1.18
Fully diluted $ 1.34 $ 1.15
Average common shares outstanding:
Primary 52,557 52,196
Fully diluted 56,396 56,052
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
-3-
<TABLE>
<CAPTION>
REPUBLIC NEW YORK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED
(In thousands)
Three Months Ended
March 31,
1994 1993
<S> <C> <C>
Cash Flows From Operating Activities:
Net income $ 79,779 $ 68,745
Adjustments to reconcile net income to net cash
provided (used) by operating activities:
Depreciation and amortization, net 16,361 9,890
Provision for loan losses 10,000 25,000
(Gains) losses on sales of investment securities, net (3,088) 86
Net loss on loans sold or held for sale 500 675
Equity in earnings of affiliate (21,110) (13,302)
Net (increase) decrease in trading accounts 142,948 (108,916)
Net increase in accounts receivable and
accrued interest 30,060 14,132
Net decrease in accounts payable and accrued expenses (480,812) (14,740)
Other, net 66,028 (204,470)
Net cash used by operating activities (159,334) (222,900)
Cash Flows From Investing Activities:
Net (increase) decrease in interest-bearing deposits
with banks (158,441) 3,291,462
Net (increase) decrease in federal funds sold and
securities purchased under resale agreements 162,869 (263,926)
Net decrease in short-term investments 57,259 16,838
Purchases of securities available for sale (1,535,092) -
Proceeds from sales of securities available for sale 184,906 -
Proceeds from maturities of securities available
for sale 1,099,173 -
Purchases of securities held to maturity (22,870) (973,775)
Proceeds from sales of securities held to maturity - 6,201
Proceeds from maturities of securities held to maturity 15,592 442,169
Net increase in loans (624,814) (51,379)
Net cash provided (used) by investing activities (821,418) 2,467,590
Cash Flows From Financing Activities:
Net decrease in deposits (661,815) (387,938)
Net increase (decrease) in short-term borrowings 1,715,278 (1,490,734)
Net decrease in due to factored clients (55,991) (60,533)
Proceeds from issuance of long-term debt 145,586 -
Repayment of long-term debt (100,000) (323,887)
Repayment of subordinated long-term debt (66,000) -
Cash dividends paid (21,294) (20,213)
Other, net (6,637) 1,914
Net cash provided (used) by financing activities 949,127 (2,281,391)
Effect of exchange rate changes on cash
and due from banks (2,745) (7,076)
Net decrease in cash and due from banks (34,370) (43,777)
Cash and due from banks at beginning of period 636,633 490,711
Cash and due from banks at end of period $ 602,263 $ 446,934
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest $ 259,525 $ 314,734
Income taxes 16,297 15,145
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
-4-
REPUBLIC NEW YORK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
COVERING THE THREE MONTHS ENDED MARCH 31, 1994 AND 1993
1. On January 1, 1994, the Corporation adopted Financial Accounting
Standards Board Interpretation No.39, "Offsetting of Amounts Related
to Certain Contracts." This interpretation requires, among other
things, that unrealized gains and losses on certain off-balance sheet
financial instruments be reported on a gross basis except when a
legally enforceable netting agreement with a counterparty exists. At
March 31, 1994, the adoption of this interpretation resulted in an
increase in the Corporation's trading account assets and liabilities
of approximately $1.6 billion. The Corporation has elected not to
restate prior periods under this interpretation.
2. On March 8, 1994, Republic National Bank of New York (the "Bank"),
the principal banking subsidiary of the Corporation, received the net
proceeds from the public sale, on March 1, 1994, of $1.0 billion
principal amount of 4.30% Notes due March 8, 1995. The Notes are not
redeemable prior to maturity and are unsecured and, except with
respect to domestic deposits, are unsubordinated debt obligations of
the Bank. The net proceeds of this short-term borrowing will be used
for the general banking business of the Bank.
3. On January 1, 1994, the Corporation adopted Statement of Financial
Accounting Standards No. 112, "Employers' Accounting for
Postemployment Benefits" ("SFAS No. 112"). SFAS No. 112 requires the
recognition of an obligation for the estimated cost of postemployment
benefits. Postemployment is defined as the period after employment
but before retirement if certain conditions are met. Postemployment
benefits include, but are not limited to, salary continuation,
severance benefits, job training and counseling, health care and life
insurance coverage. The effect of initially adopting this SFAS and
the impact of the ongoing costs are not material to the results of
operations.
4. Certain amounts from the prior year have been reclassified to conform
with 1994 classifications.
-5-
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Management's discussion and analysis of the summary of operations should be
read in conjunction with the consolidated financial statements (unaudited)
and notes shown elsewhere in this Report. In the following discussion, the
interest income earned on tax exempt obligations has been adjusted
(increased) to a fully-taxable equivalent basis. The rate used for this
adjustment was approximately 44% in 1994 and 42% in 1993. This tax
equivalent adjustment permits all interest income and net interest income
to be analyzed on a comparable basis. The following table presents a
comparative summary of the increases (decreases) in income and expense for
the first quarter of 1994 compared to the first quarter of 1993.
<TABLE>
<CAPTION>
Increase (Decrease)
1st Qtr. 1994 vs.
1st Qtr. 1993
Amount Percent
(Dollars in thousands)
<S> <C> <C>
Interest income $( 6,441) ( 1.3)
Interest expense (13,851) ( 4.6)
Net interest income 7,410 3.7
Provision for loan losses (15,000) (60.0)
Net interest income after
provision for loan losses 22,410 12.9
Other operating income 23,569 29.1
Other operating expenses 29,063 19.8
Income before income taxes 16,916 15.6
Applicable income taxes 5,173 16.2
Tax equivalent adjustment 709 9.4
Total applicable income taxes 5,882 14.9
Net income $ 11,034 16.1
Net income applicable
to common stock $ 11,115 18.0
</TABLE>
Net Interest Income - on a fully-taxable equivalent basis, increased 3.7%
to $206.4 million in the first quarter of 1994, compared to $199.0 million
in the first quarter of 1993.
As shown in the table on page 7, average interest-earning assets
were $33.1 billion in the first quarter of 1994 compared to $33.5 billion
in the first quarter of 1993. During the first quarter of 1994,
interest-bearing deposits with banks declined significantly, while
investment securities of U.S. Government agency mortgage-backed securities,
federal funds sold and securities purchased under resale agreements and
loans in both domestic and foreign offices each increased over the
respective amounts from the first quarter of 1993. Increases in
interest-bearing deposit liabilities, long-term debt and trading account
liabilities were offset by a decline in short-term borrowings. The net
interest rate differential was 2.53% in the first quarter of 1994, compared
to 2.41% in the first quarter of last year. This increase is due primarily
to a decrease in the cost of interest-bearing funds, primarily deposits and
long-term debt.
-6-
<TABLE>
<CAPTION>
REPUBLIC NEW YORK CORPORATION AND SUBSIDIARIES
AVERAGE BALANCES, NET INTEREST DIFFERENTIAL,
AVERAGE RATES EARNED AND PAID
UNAUDITED
(Fully taxable equivalent basis)
(Dollars in thousands)
Quarter Ended March 31,
1994 1993
Average Average
Interest Rates Interest Rates
Average Income/ Earned/ Average Income/ Earned/
Balance Expense Paid Balance Expense Paid
<S> <C> <C> <C> <C> <C> <C>
Interest-earning assets:
Interest-bearing deposits with banks $ 4,878,003 $ 53,322 4.43% $ 9,646,318 $ 94,035 3.95%
Investment securities(1):
Taxable 14,244,415 218,443 6.22 13,020,158 216,685 6.75
Exempt from federal income taxes 1,116,525 25,763 9.36 922,423 23,307 10.25
Total investment securities 15,360,940 244,206 6.45 13,942,581 239,992 6.98
Trading account assets(2) 1,088,990 18,447 6.87 793,624 8,718 4.46
Federal funds sold and securities
purchased under resale agreements 1,358,480 11,312 3.38 893,200 7,049 3.20
Loans, net of unearned income:
Domestic offices 6,724,601 114,517 6.91 6,032,711 119,947 8.06
Foreign offices 3,670,611 50,789 5.61 2,171,673 29,293 5.47
Total loans, net of unearned
income 10,395,212 165,306 6.45 8,204,384 149,240 7.38
Total interest-earning assets 33,081,625 $492,593 6.04% 33,480,107 $499,034 6.04%
Cash and due from banks 754,030 499,732
Other assets 7,058,686 3,395,708
Total assets $40,894,341 $37,375,547
Interest-bearing funds:
Consumer and other time deposits $ 8,071,084 $ 57,486 2.89% $ 8,288,450 $ 67,477 3.30%
Certificates of deposit 607,275 5,133 3.43 804,235 6,511 3.28
Deposits in foreign offices 11,088,367 105,408 3.86 10,482,731 101,659 3.93
Total interest-bearing
deposits 19,766,726 168,027 3.45 19,575,416 175,647 3.64
Trading account liabilities (2) 164,870 2,271 5.59 30,063 343 4.63
Short-term borrowings 5,957,837 50,943 3.47 6,623,923 55,140 3.38
Total long-term debt 4,916,743 64,902 5.35 4,472,588 68,864 6.24
Total interest-bearing funds 30,806,176 $286,143 3.77% 30,701,990 $299,994 3.96%
Noninterest-bearing deposits:
In domestic offices 1,294,187 1,072,741
In foreign offices 140,903 95,096
Other liabilities 5,901,990 3,222,227
Stockholders' equity:
Preferred stock 556,425 556,425
Common stockholders' equity 2,194,660 1,727,068
Total stockholders' equity 2,751,085 2,283,493
Total liabilities and
stockholders' equity $40,894,341 $37,375,547
Interest income/earning assets $492,593 6.04% $499,034 6.04%
Interest expense/earning assets 286,143 3.51 299,994 3.63
Net interest differential $206,450 2.53% $199,040 2.41%
<FN>
<F1>
(1) Based on amortized or historic cost with the mark-to-market adjustment included in other assets.
<F2>
(2) Excludes non-interest bearing balances, which are included in other assets or other liabilities, respectively.
</TABLE>
-7-
The Corporation manages its sensitivity to interest rates through
transactions in the cash market and by entering into off-balance-sheet
contracts, including interest rate and currency swaps and interest rate
caps and floors. These contracts hedge specifically identified assets or
liabilities with the corresponding revenues or expenses reflected in the
yield of the related on-balance-sheet asset or liability. During the past
year, the Corporation has taken steps to lengthen the maturity of its
liabilities. At March 31, 1994, the gross notional amount of such
contracts used in asset and liability management was approximately $8.3
billion. At March 31, 1994, the net effect of these contracts was to
decrease the net interest rate differential by 17 basis points. If the
trend of rising interest rates during the first quarter of 1994 continues
and the Corporation continues its program of lengthening liabilities without
increasing earning asset balances, then net interest income and the net
interest rate differential could decline.
Provision for Loan Losses - was $10.0 million in the first quarter of 1994
compared to $25.0 million in the first quarter of 1993. Net loan
charge-offs, excluding restructuring country debt, were $14.1 million in
the first quarter of 1994 and $14.9 million in the first quarter of 1993.
Net recoveries of restructuring country debt in the first quarter of 1994
were $5.7 million, compared to recoveries of $1.2 million in the first
quarter of last year.
The allowance for possible loan losses at March 31, 1994 was $313.4
million compared to $311.9 million at December 31, 1993, while loans
increased $543 million from the level at year end 1993. The allowance for
possible loan losses as a percentage of loans outstanding, net of unearned
income, was 3.12% at March 31, 1994 compared to 3.28% at December 31, 1993.
At March 31, 1994, non-accrual loans were $90.3 million compared to
$94.9 million at December 31, 1993 and $124.7 million at March 31, 1993.
The decline from the first quarter of 1993 is primarily attributable to the
decline in other foreign loans. See "Statement of Condition" below for a
discussion of total non-performing assets.
The following is a summary of total non-accrual loans at periods
ending:
<TABLE>
<CAPTION>
March 31, March 31, Dec. 31,
(in thousands) 1994 1993 1993
<S> <C> <C> <C>
Non-accrual loans:
Domestic $46,510 $ 49,318 $48,084
Foreign-restructuring
countries* 33,989 41,596 33,853
Foreign-other 9,776 33,792 12,956
Total non-accrual loans $90,275 $124,706 $94,893
<FN>
*On April 15, 1994, as part of the Brazilian restructuring
settlement, the Corporation received bonds in exchange for substantially
all of its outstandings due from Brazil, including bonds for payment of
past-due interest. The market value of the bonds received exceeded the
carrying value of the non-accrual loans. Upon sale of the bonds, the
Corporation will recognize any gain as a recovery to the allowance for loan
losses. The effect of this receipt is to reduce non-accrual loans by $33.4
million.
</TABLE>
-8-
Other Operating Income - total other operating income was $104.5 million in
the first quarter of 1994, compared to $81.0 million in the first quarter
of 1993.
Income from trading activities rose to $48.8 million in the first
quarter of 1994, from $39.2 million in the first quarter of last year.
This increase was primarily due to higher levels of income from precious
metals, a portion of which is attributable to the additional business
generated by the acquisition on December 31, 1993 of Republic Mase Bank
Limited. Trading account profits and commissions also rose in comparison
to the first quarter of 1993, principally as a result of the derivative
products group activities. This group contributed $10.0 million of revenue
in the first quarter of 1994, compared to $3.9 million in the first quarter
of last year when they commenced operations. These increases were
partially offset by a decline in foreign exchange trading income.
Investment securities gains were $3.1 million in the first quarter
of 1994, resulting from sales of securities available for sale and
redemptions prior to maturity of securities held to maturity, compared to
investment securities losses of $0.1 million in the first quarter of 1993.
A net loss on loans sold or held for sale of $0.5 million in the first
quarter of 1994 compared to a net loss of $0.7 million in the first quarter
of last year.
Commission income amounted to $17.5 million in the first quarter of
1994, compared with $9.4 million in the corresponding period of 1993. The
increase in the first quarter of 1994 was attributable to fees earned from
the Corporation's full-service securities brokerage and investment
management activities, as well as to growth in other institutional
fee-based services.
Equity in the earnings of Safra Republic Holdings S.A. ("Safra
Republic"), a European international private banking group of which the
Corporation owns approximately 49% of the outstanding shares, increased
58.7% to $21.1 million in the first quarter of 1994, from $13.3 million in
the first quarter of 1993.
Other income was $14.6 million in the first quarter of 1994. In the
first quarter of 1993, other income was $19.8 million, which included a
$5.1 million gain on the sale of certain data processing rights.
Other Operating Expenses - were $175.9 million in the first quarter of
1994, compared to $146.9 million in the first quarter of 1993. Total
operating expenses increased $29.1 million, or 19.8%, in the first quarter
of 1994 from the first quarter of 1993. Of this increase, approximately
$21.9 million is associated with investments in recently established
business units, including Republic Mase Bank Limited, the derivative
products group and retail banking expansion in California, New York and
Toronto, increased domestic private banking and global trust activities and
securities brokerage and investment management activities, as well as
increased levels of incentive-based compensation.
Salaries and employee benefits of $95.6 million in the first quarter
of 1994 reflected an increase of 19.5% from $80.0 million in the first
quarter of last year. This increase was attributable primarily to recently
established business units mentioned above, which required increased
staffing levels, as well as increased levels of incentive-based
compensation.
-9-
Total Applicable Income Taxes - have been adjusted (increased) to reflect
the inclusion of interest income on tax exempt obligations as if it was
subject to federal, state and local income taxes, after giving effect to
the deductibility of state and local taxes for federal income tax purposes.
Total applicable income taxes increased $5.9 million, or 14.9%, between the
first quarters of 1994 and 1993. This change was primarily due to the
higher level of income subject to state and local and federal income taxes
at an increased federal statutory tax rate. The effective tax rate, total
applicable income taxes as a percentage of income before income taxes, for
the first quarters of 1994 and 1993 was 36%, respectively.
STATEMENT OF CONDITION
Stockholders' Equity and Capital Ratios
On December 31, 1993, the Corporation adopted Statement of Financial
Accounting Standards No. 115, "Accounting for Certain Investments in Debt
and Equity Securities" ("SFAS No. 115"). SFAS No. 115 requires, among
other things, that securities designated as available for sale be carried
at market value with the unrealized gain or loss, net of tax effect,
recorded as a component of stockholders' equity. At March 31, 1994,
stockholders' equity included a deduction of $21.8 million, which
represents the after-tax unrealized loss in the securities available for
sale portfolio and approximately 49% of Safra Republic's unrealized loss in
its securities available for sale portfolio.
The Corporation's leverage ratio, Tier 1 capital to quarterly
average assets, and its risk-based capital ratios, Tier 1 and total
qualifying capital to risk-weighted assets, include the assets and capital
of Safra Republic on a consolidated basis in accordance with the
requirements of the Federal Reserve Board specifically applied to the
Corporation. Regulatory guidelines require the Corporation to exclude
Republic New York Securities Corporation's assets and off-balance-sheet
contracts from the Corporation's capital calculations. It also requires
the Corporation to exclude one-half of its investment in this subsidiary
from each of Tier 1 and Tier 2 capital. These regulations also require the
Corporation to exclude the $21.8 million reduction of stockholders' equity
related to the net unrealized losses on securities available for sale, net
of income taxes as recorded in accordance with SFAS No. 115.
At March 31, 1994, the Corporation's leverage ratio was 5.73%
compared to 5.61% at year end 1993. At March 31, 1994, risk-based capital
ratios were 16.59% for Tier 1, or "core", capital and 28.40% for total
qualifying capital compared to 15.16% and 26.20%, respectively, at
December 31, 1993. These ratios substantially exceeded the minimums in
effect for bank holding companies.
At March 31, 1994, the ratio of the Corporation's total common
stockholders' equity to total assets was 4.68%, compared to 5.55% at
December 31, 1993. The decline in this ratio was primarily attributable to
the growth in total assets combined with the reduction in common equity
related to the unrealized decline in the market value of the Corporation's
portfolio of securities available for sale accounted for in accordance with
SFAS No. 115.
-10-
Non-performing Assets
At March 31, 1994, total non-performing assets of $118.2 million
included $90.3 million of non-accrual loans and $27.9 million of other real
estate owned. At December 31, 1993, total non-performing assets of $118.2
million included $94.9 million of non-accrual loans and $23.3 million of
other real estate owned.
The following is a summary of total non-accrual loans and other
non-performing assets at periods ending:
<TABLE>
<CAPTION>
March 31, March 31, Dec. 31,
(in thousands) 1994 1993 1993
<S> <C> <C> <C>
Total non-accrual loans $ 90,275 $124,706 $ 94,893
Other non-performing assets:
Other real estate owned 27,882 55,029 23,338
Other non-accrual assets - 3,670 -
Total other non-performing
assets 27,882 58,699 23,338
Total non-accrual loans and
non-performing assets $118,157 $183,405 $118,231
</TABLE>
Financial Instruments
At March 31, 1994, the net fair value appreciation of the
Corporation's on balance sheet financial instruments, excluding those with
maturities of under six months, was $105 million. This amount represents
a decline in fair value appreciation of approximately $137 million from the
$242 million net appreciation at December 31, 1993. This change in value
reflects the effect of rising interest rates during the first quarter of
1994.
Not included in the information above is the fair value of deposit
liabilities with no stated maturity that are required to be reported at
their carrying value. These deposits have an increased value to the
Corporation during periods of rising interest rates.
-11-
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
11. Computation of Earnings Per Common Share
(b) Reports on Form 8-K
There were no reports on Form 8-K filed during the
quarter ended March 31, 1994.
-12-
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
REPUBLIC NEW YORK CORPORATION
Dated: May 13, 1994 By /s/Walter H. Weiner
Walter H. Weiner
Chairman of the Board
Dated: May 13, 1994 By /s/John D. Kaberle, Jr.
John D. Kaberle, Jr.
Executive Vice President and
Comptroller
(Principal Accounting Officer)
-13-
FORM 10-Q
QUARTERLY REPORT
For the fiscal quarter ended March 31, 1994
REPUBLIC NEW YORK CORPORATION
EXHIBIT INDEX
No. Exhibit Description
11 Computation of Earnings Per Common Share
EXHIBIT 11
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REPUBLIC NEW YORK CORPORATION AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER COMMON SHARE
UNAUDITED
(In thousands except per share data)
Three Months Ended
March 31,
1994 1993
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Primary:
Earnings:
Net income $79,779 $68,745
Less preferred stock dividends 7,084 7,165
Net income applicable to common
stock $72,695 $61,580
Shares:
Average number of common shares
outstanding 52,557 52,196
Net income per common share $ 1.34 $ 1.18
Fully Diluted:
Earnings:
Net income applicable to common
stock $72,695 $61,580
Add dividends applicable
to convertible preferred stock 2,911 2,911
Net income applicable to common
stock as adjusted $75,606 $64,491
Shares:
Average number of common shares
outstanding 52,557 52,196
Add shares assumed issued upon
exercise of stock options 270 287
Add shares assumed issued upon
conversion of preferred stock 3,569 3,569
Average number of common shares
outstanding as adjusted 56,396 56,052
Net income per common share $ 1.34 $ 1.15
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