UNITED STATES
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
Date of Report: July 18, 1997
REPUBLIC NEW YORK CORPORATION
(Exact name of registrant as specified in its charter)
Maryland 1-7436 13-2764867
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) 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
<PAGE>
Item 5. Other Events
In connection with the filing of a Prospectus Supplement dated July 17,
1997 relating to the offering of $250,000,000 aggregate principal amount of
the Corporation's 7.20% Subordinated Debentures Due 2097, the Corporation
is hereby filing the document listed under Item 7 below as an Exhibit to the
Corporation's Shelf Registration Statement, as amended (No. 33-49507).
Such document is hereby incorporated herein by reference in this Current
Report on Form 8-K and a copy of the same is attached hereto as an exhibit.
Item 7. Financial Statements, Pro Forma Financial
Information and Exhibits.
c. Exhibits
99 -- Press Release dated July 16, 1997, with attached
financial statements, Announcing Results for the Second
Quarter and Six Month Period Ended June 30, 1997.
<PAGE>
SIGNATURE
Pursuant to the requirement 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.
REPUBLIC NEW YORK CORPORATION
By: /s/ William F. Rosenblum, Jr.
Senior Vice President
Date: July 18, 1997
[LOGO]Republic New York Corporation
News Release
For Immediate Release
NYSE Symbol: RNB
To request release by e-mail: [email protected]
Press Contact: J. Phillip Burgess (212) 525-6597
Investor Contact: Stephen J. Saali (212)525-5593
Press Releases: http://www.rnb.com
REPUBLIC NEW YORK CORPORATION
ANNOUNCES SECOND QUARTER RESULTS
New York - July 16, 1997: Republic New York Corporation today announced its
second quarter results and noted the following highlights:
o Net income for the second quarter of 1997 was $110.5 million, up from
$103.1 million in the second quarter of 1996. Net income per common
share rose to $1.93 in the second quarter of 1997, a 12.9-percent
increase from $1.71 in the second quarter of last year.
o Net interest income was $251.2 million in the second quarter of 1997,
compared to $241.9 million in the second quarter of 1996 and $253.6
million in the first quarter of 1997.
o Equity in the earnings of Safra Republic Holdings S.A. ("SRH")
increased 34 percent to $30.6 million in the second quarter of 1997
from $22.9 million in the second quarter of last year and $28.1
million in the first quarter of 1997. Client assets at SRH, both on-
and off-balance-sheet, increased to $27.3 billion at June 30, 1997
from $18.4 billion at June 30, 1996 and $25.8 billion at March 31,
1997.
o The board of directors declared dividends of 46 cents per common
share, 34.1415 cents per depositary share on the adjustable rate
cumulative preferred stock and 45.3125 cents per share on the $1.8125
cumulative preferred stock. All dividends are payable October 1, 1997,
to stockholders of record on September 15, 1997.
Net interest income
- - -------------------
Net interest income on a fully taxable equivalent basis was $259.7 million
in the second quarter of 1997, compared to $250.1 million in the second
quarter of 1996 and $261.6 million in the first quarter of 1997. Average
interest-earning assets rose to $45.1 billion for the second quarter of
1997, compared to $39.9 billion in the second quarter of 1996 and $43.0
billion in the first quarter of 1997. The net interest rate differential
was 2.31 percent in the second quarter of 1997, compared to 2.52 percent
for the second quarter of 1996 and 2.47 percent in the first quarter of
1997. The decline in the net interest rate margin from both the first
quarter of 1997 and the second quarter of 1996 reflects the previously
reported extension of some of the corporation's short-term funding to
further reduce its exposure to a rising interest rate scenario. In
addition, the growth in the size of the balance sheet was a result of
increased client deposits, particularly in foreign offices, which were
invested in high quality assets at narrow spreads.
Net interest income on a fully taxable equivalent basis was $521.3 million
for the first six months of 1997, compared to $481.6 million in the
comparable period of 1996. Average interest-earning assets rose to $44.0
billion for the first six months of 1997, compared to $38.6 billion for the
corresponding period of 1996. The net interest rate differential was 2.39
percent for the first six months of 1997, compared to 2.51 in the
respective period of 1996.
<PAGE>
Provision for credit losses
- - ---------------------------
During the second quarter of 1997, the corporation changed its method of
reporting the aggregate allowance for possible credit losses in order to be
consistent with industry practice. The corporation's aggregate allowance
for possible credit losses, which is presented in the table below, consists
of $17.0 million applicable to trading account assets which is a reduction
of "trading account assets," $10.0 million included in "other liabilities"
for off-balance-sheet extensions of credit, such as standby letters of
credit, guarantees and commitments, and $325.5 million, which is available
to absorb all other possible credit losses.
<TABLE>
<CAPTION>
1997 1996
---------------------------------------- --------------
2nd Qtr 1st Qtr 2nd Qtr
(In thousands)
<S> <C> <C> <C>
Provision for credit losses $ 4,000 $ 4,000 $ 4,000
================= ================= ==============
Net charge-offs $ 4,122 $ 741 $ 4,311
================= ================= ==============
Aggregate allowance for credit
losses and other credit related
items:
Credit losses $ 325,526 $ 352,667 $ 339,214
Trading account assets 17,000
Other 10,000
----------------- ----------------- --------------
Total $ 352,526 $ 352,667 $ 339,214
================= ================= ==============
</TABLE>
The following table presents non-accrual loans and other non-performing
assets at periods ended:
<TABLE>
<CAPTION>
1997 1996
--------------------------------------------- -------------------
June 30 March 31 June 30
(In thousands)
<S> <C> <C> <C>
Non-accrual loans $ 95,568 $101,245 $118,660
Other real estate owned 33,215 32,691 40,466
-------------------- ------------------ -------------------
Total non-performing assets 128,783 133,936 159,126
Less: FDIC loss-sharing (1)<F1> (29,677) (39,110) (60,174)
-------------------- ------------------ -------------------
Total $ 99,106 $ 94,826 $ 98,952
==================== ================== ===================
<FN>
<F1>(1) Represents the carrying value of non-performing assets acquired in the
purchase of CrossLand Savings Bank, which are covered by a loss-sharing
agreement with the Federal Deposit Insurance Corporation. The agreement
expires on June 30, 1998. The covered amounts were $29.2 million, $37.7
million and $61.3 million at June 30, 1997, March 31, 1997 and June 30,
1996.
</FN>
</TABLE>
Other operating income
- - ----------------------
Total other operating income was $125.1 million in the second quarter of
1997, compared to $109.2 million in the second quarter of 1996 and $126.4
million in the first quarter of 1997.
Reported trading revenue (excluding associated net interest income) was
$46.5 million in the second quarter of 1997, compared to $42.1 million in
the second quarter of 1996 and $46.1 million in the first quarter of 1997.
Net interest income associated with trading activities totaled an estimated
$10.0 million in the second quarter of 1997 and $7.1 million in the first
quarter of 1997. Trading revenue from precious metals activities in the
second quarter of 1997 declined from the first quarter of 1997 as a result
of lower levels of trading activities. This decrease was partially offset
by an increase in metals arbitrage activities which generated net interest
income.
-2-
<PAGE>
The items of net interest income/(expense) in the table below represent the
net interest earned or paid on instruments held for trading, as well as an
allocation by management to reflect the funding benefit or cost associated
with the trading positions.
<TABLE>
<CAPTION>
1997
---------------------------------------------
2nd Qtr 1st Qtr 6 Mos
(In thousands)
<S> <C> <C> <C>
Income from precious metals:
Trading revenue $ 1,045 $10,798 $ 11,843
Net interest income 7,371 4,818 12,189
------------- ------------- ------------
Total 8,416 15,616 24,032
------------- ------------- ------------
Foreign exchange trading income:
Trading revenue 32,612 27,125 59,737
Net interest (expense) (2,764) (2,815) (5,579)
------------- ------------- ------------
Total 29,848 24,310 54,158
------------- ------------- ------------
Trading account profits and commissions:
Trading revenue 12,820 8,226 21,046
Net interest income 5,419 5,135 10,554
------------- ------------- ------------
Total 18,239 13,361 31,600
------------- ------------- ------------
Total:
Trading revenue 46,477 46,149 92,626
Net interest income 10,026 7,138 17,164
------------- ------------- ------------
Total $56,503 $53,287 $109,790
============= ============= ============
</TABLE>
Net investment securities gains were $6.7 million in the second quarter of
1997, compared to gains of $4.6 million in the second quarter of last year
and net losses of $5.3 million in the first quarter of 1997.
Net gains on sales of loans were $2.4 million in the second quarter of
1997, compared to net gains of $0.2 million in the second quarter of 1996
and $7.5 million in the first quarter of 1997.
Commission income, which consists primarily of fees for the issuance of
banker acceptances and letters of credit, retail services and securities
commissions was $20.7 million in the second quarter of 1997, compared to
$19.0 million in the second quarter of last year and $20.6 million in the
first quarter of 1997. The increase in commission income in the second
quarter of 1997 over the second quarter of last year reflects increased
revenue from domestic private banking, retail banking and international
correspondent banking.
Equity in the earnings of Safra Republic Holdings S.A., a European
international private banking group of which the corporation owns
approximately 49 percent, increased to $30.6 million in the second quarter
of 1997, an increase of 34 percent from $22.9 million in the corresponding
quarter of 1996 and $28.1 million in the first quarter of 1997. Client
assets at SRH, both on- and off-balance-sheet, increased to $27.3 billion
at June 30, 1997 from $18.4 billion at June 30, 1996 and $25.8 billion at
March 31, 1997. The growth in client assets, combined with higher levels of
client activities in portfolio securities, resulted in the strong growth in
income.
Other income, which consists primarily of service charges on deposit
accounts, trust income and other income from factoring and overseas
locations was $18.2 million in the second quarter of 1997, compared to
$20.4 million in the second quarter last year and $29.4 million in the
first quarter of 1997. The quarterly amounts included a gain of $2.7
million on the sale of New York retail branches in the second quarter of
1996 and in the first quarter of 1997 a gain of $7.4 million on the
unwinding of a real estate financing transaction and approximately $3.6
million of annual investment management performance fees.
-3-
<PAGE>
Other operating expenses
- - ------------------------
Total operating expenses were $214.5 million in the second quarter of 1997,
compared to $195.9 million in the second quarter of 1996 and $214.2 million
in the first quarter of 1997. The second quarter-to-quarter comparison
continues to reflect the impact of retail banking acquisitions made during
1996 and the opening of new foreign offices late in 1996 and early 1997.
Total operating expenses also includes ongoing investments in trading, risk
management and profitability reporting systems and other technology and
electronic banking initiatives which were begun in the second half of 1996.
Salaries and employee benefits were $117.3 million in the second quarter of
1997 compared to $104.2 million in the second quarter of last year and
$116.0 million in the first quarter of 1997. The increase between the
second quarter of 1997 and the second quarter of 1996 reflects the opening
of new foreign offices, as well as higher levels of incentive-based
compensation.
Occupancy expense was $16.8 million in the second quarter of 1997, compared
to $18.1 million in the first quarter of 1996 and $18.3 million in the
first quarter of 1997. The decrease in the second quarter of 1997 resulted
from increased operating efficiency.
All other expenses were $80.4 million in the second quarter of 1997, $73.5
million in the second quarter of last year and $79.9 million in the first
quarter of 1997. Amortization of goodwill and other intangible assets was
$7.1 million in the second quarter of 1997, compared to $7.6 million in the
second quarter of last year and $7.1 million in the first quarter of 1997.
Included in the second quarter of last year was a one-time charge amounting
to $1.5 million related to computer upgrades and costs of converting newly
acquired retail accounts. The increase between the second quarter of 1997
and the second quarter of 1996 reflects the previously mentioned
initiatives.
Income taxes
- - ------------
Income taxes were $47.3 million in the second quarter of 1997, compared to
$48.2 million in the second quarter of 1996 and $51.5 million in the first
quarter of 1997. The effective book income tax rate was 30.0 percent in the
second quarter of 1997, compared to 31.8 percent in the second quarter of
1996 and 31.9 percent in the first quarter of 1997. The decline in the
effective book income tax rate in the second quarter of 1997 resulted from
a reduction in income subject to income taxes.
Capital
- - -------
The following table presents return on average common stockholders' equity
(ROAE) and return on average total assets (ROAA), based on net income
applicable to common stock:
2nd Qtr 6 Mos
----------------------- ------------------------
1997 1996 1997 1996
ROAE 14.87% 15.41% 14.99% 15.26%
ROAA 0.76% 0.79% 0.78% 0.80%
The book value of the corporation's common stock was $53.22 per share at
June 30, 1997.
At June 30, 1997, the corporation's total intangibles were $328 million, of
which $261 million was goodwill.
During the second quarter of 1997, the corporation repurchased
approximately 36,000 shares of common stock. The corporation has
repurchased approximately 1.7 million shares out of the current
authorization to repurchase up to 2 million shares of common stock.
-4-
<PAGE>
The following table presents capital ratios at periods ended:
1997
-------------------------------------
June 30 March 31
Common stockholders'
equity/assets 5.20% 5.08%
Leverage 5.40%* 5.49%
Tier 1 "core" 13.10%* 13.04%
Total capital 21.90%* 21.91%
* Estimated
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 Holdings on a consolidated basis in accordance with the
requirements of the Federal Reserve Board specifically applied to the
corporation. These ratios do not reflect the effect on stockholders' equity
related to the FASB 115 valuation of the corporation's portfolio of
securities available for sale.
In accordance with regulatory guidelines, the corporation excludes Republic
New York Securities Corporation's assets and off-balance-sheet contracts
from Republic New York Corporation's capital calculations. The guidelines
also require the corporation to deduct one-half of its investment in this
subsidiary from each of Tier 1 and Tier 2 capital.
#####
<PAGE>
<TABLE>
REPUBLIC NEW YORK CORPORATION
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
<CAPTION>
June 30,
----------------------------------
1997 1996
--------------- ----------------
<S> <C> <C>
ASSETS
- - ------
Cash and due from banks $ 687,209 $ 890,861
Interest-bearing deposits with banks 5,413,300 5,573,134
Precious metals 982,508 1,043,985
Securities held to maturity 9,655,125 7,969,445
Securities available for sale 13,952,404 11,753,967
--------------- ---------------
Total investment securities 23,607,529 19,723,412
Trading account assets 4,826,330 3,508,884
Federal funds sold and securities purchased
under resale agreements 2,094,029 2,136,323
Loans, net of unearned income 12,801,173 11,303,917
Allowance for possible credit losses (325,526) (339,214)
Customers' liability on acceptances 675,230 789,819
Accounts receivable and accrued interest 3,340,367 2,069,480
Investment in affiliate 832,882 731,861
Premises and equipment 477,827 465,116
Other assets 638,874 682,077
--------------- ---------------
Total assets $ 56,051,732 $ 48,579,655
=============== ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
- - ------------------------------------
Noninterest-bearing deposits:
In domestic offices $ 2,224,145 $ 2,144,753
In foreign offices 211,985 198,187
Interest-bearing deposits:
In domestic offices 12,376,608 12,082,652
In foreign offices 18,422,180 15,654,152
--------------- ---------------
Total deposits 33,234,918 30,079,744
Trading account liabilities 4,204,047 3,190,666
Short-term borrowings 6,972,685 4,958,942
Acceptances outstanding 675,421 790,568
Accounts payable and accrued expenses 2,590,048 1,622,091
Due to factored clients 628,425 591,545
Other liabilities 179,744 156,955
Long-term debt 1,499,051 1,696,108
Subordinated long-term debt and perpetual
capital notes 2,400,000 2,406,441
Company-obligated mandatorily redeemable preferred
securities of subsidiary trusts holding solely junior
subordinated debt securities 350,000 -
Stockholders' equity:
Cumulative preferred stock, no par value
4,501,750 shares outstanding in 1997 and
8,502,500 in 1996 400,000 575,000
Common stock, $5 par value 150,000,000 shares
authorized; 54,816,416 shares outstanding
in 1997 and 55,428,109 in 1996 274,082 277,141
Surplus 457,496 520,149
Retained earnings 2,066,707 1,771,982
Net unrealized appreciation (depreciation) on
securities available for sale, net of taxes 119,108 (57,677)
--------------- ---------------
Total stockholders' equity 3,317,393 3,086,595
--------------- ---------------
Total liabilities and stockholders' equity $ 56,051,732 $ 48,579,655
=============== ===============
</TABLE>
<PAGE>
<TABLE>
REPUBLIC NEW YORK CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In thousands except per share data)
<CAPTION>
Three Months Ended
----------------------------------
June 30, March 31, June 30,
1997 1997 1996
--------- --------- ---------
<S> <C> <C> <C>
INTEREST INCOME:
Interest and fees on loans $ 267,299 $ 255,245 $ 222,785
Interest on deposits with banks 78,166 75,391 99,790
Interest and dividends on investment securities:
Taxable 373,680 344,651 318,086
Exempt from federal income taxes 23,684 21,765 23,879
Interest on trading account assets 31,537 29,294 17,591
Interest on federal funds sold and securities
purchased under resale agreements 25,560 21,112 23,837
--------- --------- ---------
Total interest income 799,926 747,458 705,968
--------- --------- ---------
INTEREST EXPENSE:
Interest on deposits 364,589 334,861 326,906
Interest on short-term borrowings 116,873 93,633 75,440
Interest on long-term debt 67,244 65,409 61,707
--------- --------- ---------
Total interest expense 548,706 493,903 464,053
--------- --------- ---------
NET INTEREST INCOME 251,220 253,555 241,915
Provision for credit losses 4,000 4,000 4,000
--------- --------- ---------
Net interest income after provision for credit losses 247,220 249,555 237,915
--------- --------- ---------
OTHER OPERATING INCOME:
Income from precious metals 1,045 10,798 3,223
Foreign exchange trading income 32,612 27,125 23,039
Trading account profits and commissions 12,820 8,226 15,832
Investment securities gains (losses), net 6,667 (5,304) 4,559
Net gain on loans sold or held for sale 2,418 7,477 241
Commission income 20,662 20,595 19,010
Equity in earnings of affiliate 30,609 28,065 22,854
Other income 18,236 29,423 20,419
--------- --------- ---------
Total other operating income 125,069 126,405 109,177
--------- --------- ---------
OTHER OPERATING EXPENSES:
Salaries 68,695 66,349 64,044
Employee benefits 48,602 49,627 40,187
Occupancy, net 16,844 18,279 18,114
Other expenses 80,354 79,932 73,542
--------- --------- ---------
Total other operating expenses 214,495 214,187 195,887
--------- --------- ---------
INCOME BEFORE INCOME TAXES 157,794 161,773 151,205
Income taxes 47,289 51,529 48,155
--------- --------- ---------
NET INCOME $ 110,505 $ 110,244 $ 103,050
========= ========= =========
NET INCOME APPLICABLE TO COMMON STOCK $ 105,231 $ 103,806 $ 95,235
========= ========= =========
Net income per common share $1.93 $1.89 $1.71
Average common shares outstanding 54,588 54,809 55,718
</TABLE>
<PAGE>
<TABLE>
REPUBLIC NEW YORK CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In thousands except per share data)
<CAPTION>
Six Months Ended June 30,
---------------------------
1997 1996
---------- ----------
<S> <C> <C>
INTEREST INCOME:
Interest and fees on loans $ 522,544 $ 438,318
Interest on deposits with banks 153,557 202,808
Interest and dividends on investment securities:
Taxable 718,331 608,864
Exempt from federal income taxes 45,449 47,757
Interest on trading account assets 60,831 32,250
Interest on federal funds sold and securities
purchased under resale agreements 46,672 41,618
---------- ----------
Total interest income 1,547,384 1,371,615
---------- ----------
INTEREST EXPENSE:
Interest on deposits 699,450 630,408
Interest on short-term borrowings 210,506 150,774
Interest on long-term debt 132,653 125,432
---------- ----------
Total interest expense 1,042,609 906,614
---------- ----------
NET INTEREST INCOME 504,775 465,001
Provision for credit losses 8,000 8,000
---------- ----------
Net interest income after provision for credit losses 496,775 457,001
---------- ----------
OTHER OPERATING INCOME:
Income from precious metals 11,843 11,611
Foreign exchange trading income 59,737 50,601
Trading account profits and commissions 21,046 25,557
Investment securities gains, net 1,363 9,888
Net gain on loans sold or held for sale 9,895 1,743
Commission income 41,257 34,646
Equity in earnings of affiliate 58,674 44,494
Other income 47,659 37,909
---------- ----------
Total other operating income 251,474 216,449
---------- ----------
OTHER OPERATING EXPENSES:
Salaries 135,044 125,205
Employee benefits 98,229 80,129
Occupancy, net 35,123 34,490
Other expenses 160,286 140,412
---------- ----------
Total other operating expenses 428,682 380,236
---------- ----------
INCOME BEFORE INCOME TAXES 319,567 293,214
Income taxes 98,818 90,572
---------- ----------
NET INCOME $ 220,749 $ 202,642
========== ==========
NET INCOME APPLICABLE TO COMMON STOCK $ 209,037 $ 187,050
========== ==========
Net income per common share $3.82 $3.35
Average common shares outstanding 54,699 55,870
</TABLE>
<PAGE>
<TABLE>
REPUBLIC NATIONAL BANK OF NEW YORK
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
<CAPTION>
June 30,
----------------------------------
1997 1996
------------ -------------
<S> <C> <C>
ASSETS
- - ------
Cash and due from banks $ 647,080 $ 854,091
Interest-bearing deposits with banks 5,380,570 5,507,426
Precious metals 981,544 1,043,985
Securities held to maturity 9,255,270 7,667,129
Securities available for sale 11,638,270 9,858,276
------------ ------------
Total investment securities 20,893,540 17,525,405
Trading account assets 4,739,655 3,363,241
Federal funds sold and securities purchased
under resale agreements 2,094,029 2,136,323
Loans, net of unearned income 11,790,470 10,364,111
Allowance for possible credit losses (300,013) (313,943)
Customers' liability on acceptances 673,989 788,345
Accounts receivable and accrued interest 1,133,405 854,842
Investment in affiliate 832,882 731,861
Premises and equipment 416,513 405,579
Other assets 578,833 618,998
------------ ------------
Total assets $ 49,862,497 $ 43,880,264
============ ============
LIABILITIES AND STOCKHOLDER'S EQUITY
- - ------------------------------------
Noninterest-bearing deposits:
In domestic offices $ 2,144,390 $ 2,072,416
In foreign offices 213,134 199,433
Interest-bearing deposits:
In domestic offices 12,145,669 11,884,670
In foreign offices 18,907,536 15,869,615
------------ ------------
Total deposits 33,410,729 30,026,134
Trading account liabilities 4,170,293 3,120,086
Short-term borrowings 4,814,232 3,575,978
Acceptances outstanding 674,123 789,094
Accounts payable and accrued expenses 1,460,747 958,434
Other liabilities 117,834 101,021
Long-term debt 1,389,047 1,596,108
Subordinated long-term debt, primarily with parent 575,000 681,441
Stockholder's equity:
Common stock, $100 par value 4,800,000 shares
authorized; 4,000,000 shares outstanding 400,000 400,000
Surplus 1,638,083 1,632,234
Retained earnings 1,129,688 1,064,513
Net unrealized appreciation (depreciation) on
securities available for sale, net of taxes 82,721 (64,779)
------------ ------------
Total stockholder's equity 3,250,492 3,031,968
------------ ------------
Total liabilities and stockholder's equity $ 49,862,497 $ 43,880,264
============ ============
</TABLE>
<PAGE>
<TABLE>
REPUBLIC NEW YORK CORPORATION
AVERAGE BALANCES, NET INTEREST DIFFERENTIAL,
AVERAGE RATES EARNED AND PAID
(Fully taxable equivalent basis)
(Dollars in thousands)
<CAPTION>
Quarter Ended
-----------------------------------------------------------------------------
June 30, 1996 September 30, 1996
------------------------------------ -------------------------------------
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............. $ 5,754,785 $ 99,790 6.97% $ 5,906,911 $ 91,926 6.19%
Investment securities:(1)<F1>
Taxable........................................ 17,818,852 318,086 7.18 18,300,015 324,900 7.06
Exempt from federal income taxes............... 1,545,833 32,079 8.35 1,490,059 31,681 8.46
----------- ------- ----------- --------
Total investment securities................... 19,364,685 350,165 7.27 19,790,074 356,581 7.17
Trading account assets(2)<F2>.................... 1,223,718 17,591 5.78 1,168,008 17,426 5.94
Federal funds sold and securities
purchased under resale agreements............. 1,790,545 23,837 5.35 2,012,720 27,865 5.51
Loans, net of unearned income:
Domestic offices............................... 8,240,550 164,664 8.04 8,384,193 171,023 8.11
Foreign offices................................ 3,538,986 58,121 6.61 3,775,928 64,971 6.85
----------- -------- ----------- --------
Total loans, net of unearned income.......... 11,779,536 222,785 7.61 12,160,121 235,994 7.72
----------- -------- ----------- --------
Total interest-earning assets................ 39,913,269 $714,168 7.20% 41,037,834 $729,792 7.07%
======== ===== ======== =====
Cash and due from banks............................ 731,293 705,730
Other assets....................................... 7,672,774 7,667,665
----------- -----------
Total assets.................................. $48,317,336 $49,411,229
=========== ===========
Interest-bearing funds:
Consumer and other time deposits................. $11,141,148 $109,012 3.94% $11,148,550 $110,114 3.93%
Certificates of deposit.......................... 821,597 10,282 5.03 1,087,844 13,577 4.97
Deposits in foreign offices...................... 14,781,369 207,612 5.65 15,078,686 198,345 5.23
----------- -------- ----------- --------
Total interest-bearing deposits............... 26,744,114 326,906 4.92 27,315,080 322,036 4.69
Trading account liabilities(2)<F2>............... 91,496 1,952 8.58 259,863 4,546 6.96
Short-term borrowings............................ 6,094,595 73,488 4.85 6,784,006 83,501 4.90
Total long-term debt............................. 3,946,672 61,707 6.29 4,101,227 65,260 6.33
------------ -------- ----------- --------
Total interest-bearing funds................. 36,876,877 $464,053 5.06% 38,460,176 $475,343 4.92%
======== ===== ======== =====
Noninterest-bearing deposits:
In domestic offices.............................. 1,957,276 2,099,582
In foreign offices............................... 153,574 120,752
Other liabilities.................................. 6,268,737 5,612,465
Stockholders' equity:
Preferred stock.................................. 575,000 575,000
Common stockholders' equity...................... 2,485,872 2,543,254
----------- -----------
Total stockholders' equity.................... 3,060,872 3,118,254
----------- -----------
Total liabilities and stockholders' equity.... $48,317,336 $49,411,229
=========== ===========
Interest income/earning assets..................... $714,168 7.20% $729,792 7.07%
Interest expense/earning assets.................... 464,053 4.68 475,343 4.60
-------- ----- -------- -----
Net interest differential.......................... $250,115 2.52% $254,449 2.47%
======== ===== ======== =====
<CAPTION>
Quarter Ended
----------------------------------------------------------------------------
December 31, 1996 March 31, 1997
------------------------------------ -----------------------------------
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............. $ 5,190,003 $ 81,296 6.23% $ 4,765,059 $ 75,391 6.42%
Investment securities:(1)<F1>
Taxable........................................ 19,160,641 345,462 7.17 20,087,077 344,651 6.96
Exempt from federal income taxes............... 1,463,276 29,191 7.94 1,488,306 29,831 8.13
----------- -------- ----------- --------
Total investment securities................... 20,623,917 374,653 7.23 21,575,383 374,482 7.04
Trading account assets(2)<F2>.................... 1,221,782 17,603 5.73 1,676,907 29,294 7.08
Federal funds sold and securities
purchased under resale agreements............. 2,060,396 28,578 5.52 1,597,686 21,112 5.36
Loans, net of unearned income:
Domestic offices............................... 8,714,159 175,186 8.00 8,575,204 175,634 8.31
Foreign offices................................ 4,081,954 69,732 6.80 4,761,047 79,611 6.78
----------- -------- ----------- --------
Total loans, net of unearned income.......... 12,796,113 244,918 7.61 13,336,251 255,245 7.76
----------- -------- ----------- --------
Total interest-earning assets................ 41,892,211 $747,048 7.09% 42,951,286 $755,524 7.13%
======== ===== ======== =====
Cash and due from banks............................ 748,582 748,948
Other assets....................................... 8,105,572 9,321,772
----------- -----------
Total assets.................................. $50,746,365 $53,022,006
=========== ===========
Interest-bearing funds:
Consumer and other time deposits................. $11,089,384 $110,497 3.96% $10,965,892 $107,202 3.96%
Certificates of deposit.......................... 1,462,261 18,411 5.01 1,582,525 19,489 4.99
Deposits in foreign offices...................... 15,417,782 200,853 5.18 16,152,960 208,170 5.23
----------- -------- ----------- --------
Total interest-bearing deposits............... 27,969,427 329,761 4.69 28,701,377 334,861 4.73
Trading account liabilities(2)<F2>............... 268,320 4,371 6.48 264,185 4,052 6.22
Short-term borrowings............................ 7,321,676 89,883 4.88 7,294,690 89,581 4.98
Total long-term debt............................. 4,103,689 64,926 6.29 4,194,480 65,409 6.32
---------- -------- ----------- --------
Total interest-bearing funds................. 39,663,112 $488,941 4.90% 40,454,732 $493,903 4.95%
======== ===== ======== =====
Noninterest-bearing deposits:
In domestic offices.............................. 2,213,503 2,197,543
In foreign offices............................... 144,765 213,173
Other liabilities.................................. 5,460,550 6,888,910
Stockholders' equity:
Preferred stock.................................. 573,748 480,064
Common stockholders' equity...................... 2,690,687 2,787,584
----------- -----------
Total stockholders' equity.................... 3,264,435 3,267,648
----------- -----------
Total liabilities and stockholders' equity.... $50,746,365 $53,022,006
=========== ===========
Interest income/earning assets..................... $747,048 7.09% $755,524 7.13%
Interest expense/earning assets.................... 488,941 4.64 493,903 4.66
-------- ----- -------- -----
Net interest differential.......................... $258,107 2.45% $261,621 2.47%
======== ===== ======== =====
<CAPTION>
Quarter Ended
------------------------------------
June 30, 1997
------------------------------------
Average
Interest Rates
Average Income/ Earned/
Balance Expense Paid
------------------------------------
<S> <C> <C> <C>
Interest-earning assets:
Interest-bearing deposits with banks............. $ 4,953,775 $ 78,166 6.33%
Investment securities:(1)<F1>
Taxable........................................ 21,037,573 373,680 7.12
Exempt from federal income taxes............... 1,588,120 32,192 8.13
----------- --------
Total investment securities................... 22,625,693 405,872 7.20
Trading account assets(2)<F2>................... 1,638,352 31,537 7.72
Federal funds sold and securities
purchased under resale agreements............. 1,909,235 25,560 5.37
Loans, net of unearned income:
Domestic offices............................... 9,288,054 188,245 8.13
Foreign offices................................ 4,710,118 79,054 6.73
------------ --------
Total loans, net of unearned income.......... 13,998,172 267,299 7.66
------------ --------
Total interest-earning assets................ 45,125,227 $808,434 7.19%
======== =====
Cash and due from banks............................ 813,100
Other assets....................................... 9,698,863
------------
Total assets.................................. $55,637,190
============
Interest-bearing funds:
Consumer and other time deposits................. $10,826,151 $108,401 4.02%
Certificates of deposit.......................... 1,619,298 20,796 5.15
Deposits in foreign offices...................... 17,447,434 235,392 5.41
----------- --------
Total interest-bearing deposits............... 29,892,883 364,589 4.89
Trading account liabilities(2)<F2>............... 164,146 3,090 7.55
Short-term borrowings............................ 8,906,736 113,783 5.12
Total long-term debt............................. 4,197,233 67,244 6.43
----------- --------
Total interest-bearing funds................. 43,160,998 $548,706 5.10%
======== =====
Noninterest-bearing deposits:
In domestic offices.............................. 2,284,431
In foreign offices............................... 161,047
Other liabilities.................................. 6,793,141
Stockholders' equity:
Preferred stock.................................. 400,000
Common stockholders' equity...................... 2,837,573
-----------
Total stockholders' equity.................... 3,237,573
-----------
Total liabilities and stockholders' equity.... $55,637,190
===========
Interest income/earning assets..................... $808,434 7.19%
Interest expense/earning assets.................... 548,706 4.88
-------- -----
Net interest differential.......................... $259,728 2.31%
======== =====
<FN>
<F1> (1) Based on amortized or historic cost with the mark-to-market adjustment on
securities available for sale included in other assets.
<F2> (2) Excludes noninterest-bearing balances, which are included in other assets or
other liabilities, respectively.
</FN>
</TABLE>
