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: January 27, 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
Republic New York Corporation is hereby filing the document listed
under Item 7 below. 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 January 15, 1997, with attached
financial statements, Announcing Results for the Fourth
Quarter and Twelve-Month Period Ended December 31, 1996.
<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: January 27, 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 FOURTH QUARTER RESULTS UP 18.2%
21% DIVIDEND INCREASE
New York - January 15, 1997: Republic New York Corporation announced its
fourth quarter results today and noted the following highlights during the
quarter:
o Net income for the fourth quarter of 1996 was $108.5 million, up from
$94.9 million in the fourth quarter of 1995. Fully diluted earnings
per common share rose 18.2 percent to $1.82 in the fourth quarter of
1996, compared to $1.54 in the fourth quarter of the previous year.
o The board of directors approved a 21-percent increase in the quarterly
dividend on common stock to 46 cents from 38 cents per share. The
dividend is payable April 1, 1997, to stockholders of record on March
15, 1997. The board has also approved a dividend reinvestment plan for
shareholders of common stock, which should be available beginning with
the dividend payable April 1, 1997.
o For the full year 1996, net income was $418.8 million, compared to
$288.6 million last year. Net income in 1995 reflected a pre-tax
provision of $120 million ($78 million after tax) related to a
corporate-wide restructuring program. Fully diluted earnings per
common share were $6.97 in 1996, compared to $4.59 in 1995.
o Net interest income rose to $250.7 million in the fourth quarter of
1996, compared to $210.1 million in the fourth quarter of 1995 and
$246.5 million in the third quarter of 1996.
o In the fourth quarter, the corporation repurchased approximately
249,000 shares of common stock. The corporation has repurchased
approximately 1.3 million shares out of the current authorization to
repurchase up to 2 million shares of common stock.
o During the fourth quarter, subsidiary trusts of the corporation sold
$350 million of capital securities which qualify as Tier 1 capital. A
portion of the proceeds will be used to redeem, on or after February
27, 1997, all 4 million outstanding shares of $1.9375 cumulative
preferred stock with an aggregate stated value of $100 million. During
the fourth quarter of 1996, the corporation redeemed $19.2 million of
a remarketed preferred stock issue and intends to redeem the remaining
balance of this issue with an aggregate stated value of $55.8 million
during the first quarter of 1997.
o The board also declared dividends of 33.3871 cents per depositary
share representing the adjustable rate cumulative preferred stock and
45.3125 cents per share on the $1.8125 cumulative preferred stock. The
dividends are payable April 1, 1997, to stockholders of record on
March 15, 1997. A partial dividend of 30.1389 cents per share was
declared on the $1.9375 cumulative preferred stock and will be paid on
the redemption date.
o In the fourth quarter, the corporation began operations in its
commercial banking subsidiaries in Moscow and Sao Paulo. Both
subsidiaries will focus on activities in the local capital markets,
and the Brazil operation will also work to facilitate trade
transactions for international corporations. The Federal Reserve Board
has approved the establishment of a Republic branch office in Taipei.
The branch is expected to begin operations during the first quarter of
1997, pending approval from local authorities.
<PAGE>
Net interest income
Net interest income on a fully taxable equivalent basis was $258.1 million
in the fourth quarter of 1996, compared to $218.4 million in the fourth
quarter of 1995 and $254.4 million in the third quarter of 1996. Average
interest-earning assets rose to $41.9 billion in the fourth quarter of
1996, compared to $34.7 billion in the fourth quarter of 1995 and $41.0
billion in the third quarter of 1996. These increases reflected the
additional interest-earning assets acquired from CrossLand in the first
quarter of 1996, the investment of the proceeds of deposit liabilities
acquired in other transactions completed during the first nine months of
1996 and an increase in investment securities funded by deposits in foreign
offices and short-term borrowings. Net interest income in the fourth
quarter of 1995 included a one-time increase of $5.9 million as a result of
converting financial reporting for certain operations to a current basis.
The net interest rate differential was 2.45 percent in the fourth quarter
of 1996, compared to 2.50 percent in the fourth quarter of 1995 and 2.47
percent in the third quarter of 1996.
Net interest income on a fully taxable equivalent basis was $994.1 million
for the full year 1996, compared to $854.2 million in 1995. This increase
is due to an increase in average interest-earning assets to $40.0 billion
in 1996 from $32.7 billion in 1995, which more than offset the decline in
the net interest rate differential to 2.48 percent in 1996 from 2.61
percent in 1995. The sources of the volume increases are described in the
prior paragraph.
Provision for credit losses
The total allowance for possible credit losses is available to absorb any
credit losses in the corporation's portfolio. The following table presents
certain information relating to the provision and allowance for credit
losses:
<TABLE>
<CAPTION>
4th Qtr 3rd Qtr 4th Qtr
(In thousands) 1996 1996 1995
----------------- ----------------- -----------------
<S> <C> <C> <C>
Provision for credit losses $ 4,000 $ 20,000 $ 3,000
================= ================= =================
Net charge-offs $ 3,776 $ 8,967 $ 15,767
================= ================= =================
Allowance for credit losses at
period end $ 350,358 $ 350,327 $ 300,593
================= ================= =================
</TABLE>
The provision for credit losses was $4.0 million and $3.0 million in the
fourth quarters of 1996 and 1995, respectively, and $20.0 million in the
third quarter of 1996. While no specific credit concerns existed in the
third quarter, management considered the increased provision for credit
losses recorded in that period to be prudent in the context of increased
domestic and international exposures. Net charge-offs in the fourth quarter
of 1996 declined by $5.2 million from the third quarter of 1996 and $12.0
million from the fourth quarter of 1995.
The following table presents non-accrual loans and other non-performing
assets at periods ended:
<TABLE>
<CAPTION>
Dec 31, Sept 30, Dec 31,
(In thousands) 1996 1996 1995
-------------------- ------------------ ------------------
<S> <C> <C> <C>
Non-accrual loans $105,093 $111,954 $67,872
Other real estate owned 36,278 39,443 31,329
-------------------- ------------------ ------------------
Total non-performing assets 141,371 151,397 $99,201
==================
Less: FDIC loss-sharing (1)<F1> (52,359) (53,209)
-------------------- ------------------
Total $ 89,012 $ 98,188
==================== ==================
<FN>
<F1>(1)Represents the carrying value of non-performing assets acquired in
the CrossLand transaction that are covered by a loss-sharing agreement
with the Federal Deposit Insurance Corporation. The agreement expires
on June 30, 1998. The covered amounts were $56.4 million and $56.2
million at December 31 and September 30, 1996, respectively.
</FN>
</TABLE>
-2-
<PAGE>
Other operating income
- ----------------------
Total other operating income rose to $119.9 million in the fourth quarter
of 1996, compared to $97.0 million in the fourth quarter of last year,
primarily from higher levels of trading income. Other operating income was
$109.8 million in the third quarter of 1996.
Income from trading activities was $44.5 million in the fourth quarter of
1996, compared to $25.5 million in the fourth quarter of 1995. This
increase primarily reflects the addition of the emerging markets trading
unit together with an improvement in the volume of the derivatives trading
business in the current quarter from levels experienced in the prior year.
In 1996, precious metals revenues shifted out of income from precious
metals and into interest income as precious metals activities became net
providers of funds to the bank instead of net users of funds as in prior
years. Total trading results were $43.5 million in the third quarter of
1996.
Net investment securities gains in the fourth quarter of 1996 were $7.8
million, compared to $16.4 million in the fourth quarter of last year and
$5.6 million in the third quarter of 1996. The fourth quarter 1995 net gain
included $9.8 million related to sales of emerging market securities. Net
gains on loans sold or held for sale were $0.6 million in the fourth
quarter of 1996, compared to $2.9 million in the fourth quarter of 1995.
Commission income, which consists primarily of fees for the issuance of
letters of credit, the creation of acceptances and the collection and
transfer of funds, was $18.6 million in the fourth quarter of 1996,
compared to $13.9 million in the fourth quarter of 1995 and $18.2 million
in the third quarter of 1996. Commission income in the fourth quarter of
1996 improved, compared to the fourth quarter of 1995, due to increases in
levels of activity in letters of credit, securities clearance, funds
transfer and the shipment of U.S.-dollar denominated bank notes.
Equity in the earnings of Safra Republic Holdings S.A. ("SRH"), a European
international private banking group of which the corporation owns
approximately 49 percent, increased to $25.1 million in the fourth quarter
of 1996, compared to $20.8 million in the corresponding quarter of 1995 and
$23.8 million in the third quarter of 1996. The client accounts of SRH,
both on- and off-balance-sheet, increased to $22.6 billion at December 31,
1996 from $16.8 billion at December 31, 1995 and $20.8 billion at September
30, 1996. As previously announced, SRH has agreed to acquire Mercury Bank
AG, a Swiss private bank that specializes in investment management
services. Upon the completion of this acquisition, which is pending receipt
of Swiss and Luxembourg regulatory approvals, SRH client accounts will
total approximately $25 billion.
Other income, which consists primarily of service charges on deposit
accounts, trust income and other income from factoring and overseas
locations, was $23.3 million in the fourth quarter of 1996, compared to
$17.6 million in the fourth quarter of 1995 and $20.1 million in the third
quarter of 1996. Included in the fourth quarter and third quarter of 1996
were net gains on the sale of other real estate owned of $1.7 million and
$2.3 million, respectively. Also included in the fourth quarter of 1996 are
$2.1 million in loan prepayment fees. The fourth quarter of 1995 included
$2.4 million of income from the sale of an equipment lease.
Other operating expenses
- ------------------------
Total operating expenses were $207.2 million in the fourth quarter of 1996,
compared to $169.2 million in the fourth quarter of 1995 and $198.3 million
in the third quarter of 1996. Included in the fourth quarter of 1995 are
approximately $3.4 million of expenses as a result of a previously
described conversion of operations to a current basis.
During 1996, Republic invested in initiatives designed to increase revenues
in future periods and in infrastructure to support and control those
operations.
Retail banking expenses increased as a result of the acquisitions of
CrossLand and branches of First Nationwide Bank FSB and Bank Leumi. Growth
in the volumes of mortgages, home equity loans and increased sales of
investment products resulted in the payment of additional fees for related
services.
Republic continued to invest in broadening the array of investment
products, including, in the fourth quarter, an asset allocation product
which will be targeted at the retail client. Republic significantly
expanded Republic Financial Services to offer full-service and discount
securities brokerage to bank business and consumer clients. In the fourth
quarter of 1996, Republic Interactive, the electronic front door to
Republic, began marketing on-line access to Republic banking services.
-3-
<PAGE>
Banking subsidiaries in Moscow and Sao Paulo opened for business in the
fourth quarter.
Throughout the year, and particularly in the fourth quarter of 1996,
Republic continued to invest in trading market services and in advanced
risk management systems to support its expanding trading operations. It
also increased its investment in the development of new profitability
measuring systems which will enable it to efficiently measure and present
line of business results.
All of the initiatives described above contributed to the increase in
operating expenses from the fourth quarter of 1995 to the fourth quarter of
1996. The increases from the third quarter of 1996 to the fourth quarter of
1996 relate primarily to all of the initiatives except the bank and branch
acquisitions.
Salaries and employee benefits were $109.2 million in the fourth quarter of
1996, compared to $90.6 million in the fourth quarter of the previous year
and $105.6 million in the third quarter of 1996. The 1996 fourth quarter
amount reflects higher staff levels attributable to the above-mentioned
acquisitions and recently established operations, as well as the
achievement of higher revenue thresholds that required higher provisions
for incentive compensation.
Occupancy expense was $17.6 million in the fourth quarter of 1996, compared
to $14.4 million in the fourth quarter of 1995 and $20.6 million in the
third quarter of 1996. During 1996, the corporation completed the
consolidation of 14 retail consumer branches. Included in third quarter
1996 expenses was a one-time charge of $2.0 million incurred in these
consolidations.
All other expenses were $80.4 million in the fourth quarter of 1996, $64.2
million in the fourth quarter of 1995 and $72.1 million in the third
quarter of 1996. The fourth quarter-to-quarter increase reflects a full
quarter of expenses attributable to the CrossLand, First Nationwide and
Leumi acquisitions, including increased costs for amortization of goodwill
and other intangible assets related to these acquisitions. The increase
between the third and fourth quarters of 1996 reflects new initiatives
discussed above. Amortization of goodwill and other intangible assets was
$7.7 million in the fourth quarter of 1996, $2.6 million in the fourth
quarter of 1995 and $7.6 million in the third quarter of 1996.
Income taxes
- ------------
Income tax expense was $50.8 million in the fourth quarter of 1996,
compared to $40.0 million in the fourth quarter of 1995 and $30.3 million
in the third quarter of 1996. The effective book income tax rate was 31.9
percent in the fourth quarter of 1996, compared to 29.7 percent in the
fourth quarter a year earlier and 22.0 percent in the third quarter of
1996. Included in the third quarter of 1996 was a $12.0 million income tax
benefit related to a tax law change.
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:
<TABLE>
<CAPTION>
4th Qtr 4th Qtr 12 Mos 12 Mos
1996 1995 1996 1995
-------- -------- -------- --------
<S> <C> <C> <C> <C>
ROAE 14.87% 14.56% 15.24% 11.73%
ROAA 0.79% 0.79% 0.80% 0.61%
</TABLE>
The book value of the corporation's common stock was $50.01 per share at
December 31, 1996.
At December 31, 1996, the corporation's total intangibles were $335
million, of which $275 million was goodwill.
-4-
<PAGE>
The following table presents capital ratios at periods ending:
<TABLE>
<CAPTION>
Dec 31, Sept 30,
1996 1996
--------- ---------
<S> <C> <C>
Common stockholders'
equity/assets 5.26% 5.24%
Leverage 5.85%*<F1> 5.26%
Tier 1 "core"-risk adjusted 14.05%*<F1> 12.86%
Total capital-risk adjusted 23.75%*<F1> 22.03%
<FN>
<F1>* Estimated
</FN>
</TABLE>
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 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 the above 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.
-5-
<PAGE>
<TABLE>
REPUBLIC NEW YORK CORPORATION
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
<CAPTION>
December 31,
------------------------------------------
1996 1995
----------------- -----------------
<S> <C> <C>
ASSETS
------
Cash and due from banks $ 710,183 $ 675,683
Interest-bearing deposits with banks 5,909,195 6,094,495
Precious metals 1,231,319 1,250,038
Securities held to maturity 8,135,068 4,487,022
Securities available for sale 13,040,445 11,751,523
----------------- -----------------
Total investment securities 21,175,513 16,238,545
Trading account assets 4,807,788 4,035,606
Federal funds sold and securities purchased
under resale agreements 2,109,109 1,749,268
Loans, net of unearned income 11,721,936 9,843,960
Allowance for possible credit losses (350,358) (300,593)
Customers' liability on acceptances 938,615 818,007
Accounts receivable and accrued interest 2,108,318 1,946,077
Investment in affiliate 806,274 722,466
Premises and equipment 469,231 436,771
Other assets 661,728 371,231
----------------- -----------------
Total assets $ 52,298,851 $ 43,881,554
================= =================
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Noninterest-bearing deposits:
In domestic offices $ 2,296,267 $ 1,740,035
In foreign offices 177,675 160,133
Interest-bearing deposits:
In domestic offices 12,559,554 8,471,452
In foreign offices 16,692,083 14,548,013
----------------- -----------------
Total deposits 31,725,579 24,919,633
Trading account liabilities 4,402,085 3,719,651
Short-term borrowings 5,446,841 3,890,768
Acceptances outstanding 939,598 819,766
Accounts payable and accrued expenses 1,405,822 2,840,048
Due to factored clients 604,686 528,684
Other liabilities 218,910 193,645
Long-term debt 1,498,710 1,555,111
Subordinated long-term debt and perpetual
capital notes 2,400,000 2,406,440
Company-obligated manditorily redeemable capital
securities of subsidiary trusts holding solely junior
subordinated debt securities 350,000 -
Stockholders' equity:
Cumulative preferred stock, no par value
8,502,308 shares outstanding in 1996 and
8,502,500 in 1995 555,800 575,000
Common stock, $5 par value 150,000,000 shares
authorized; 55,009,549 shares outstanding
in 1996 and 56,259,563 in 1995 275,048 281,298
Surplus 502,425 590,008
Retained earnings 1,918,880 1,636,264
Net unrealized appreciation (depreciation) on
securities available for sale, net of taxes 54,467 (74,762)
----------------- -----------------
Total stockholders' equity 3,306,620 3,007,808
----------------- -----------------
Total liabilities and stockholders' equity $ 52,298,851 $ 43,881,554
================= =================
</TABLE>
<PAGE>
<TABLE>
REPUBLIC NEW YORK CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In thousands except per share data)
<CAPTION>
Year Ended Three Months Ended
December 31, December 31,
---------------------------- ---------------------------
1996 1995 1996 1995
------------ ------------- ------------ ------------
<S> <C> <C> <C> <C>
INTEREST INCOME:
Interest and fees on loans $ 919,230 $ 749,719 $ 244,918 $ 202,266
Interest on deposits with banks 376,030 526,185 81,296 112,283
Interest and dividends on investment securities:
Taxable 1,279,226 927,740 345,462 251,720
Exempt from federal income taxes 93,257 89,744 21,784 21,930
Interest on trading account assets 67,279 55,736 17,603 15,762
Interest on federal funds sold and securities
purchased under resale agreements 98,061 97,547 28,578 34,338
------------ ------------- ------------ ------------
Total interest income 2,833,083 2,446,671 739,641 638,299
------------ ------------- ------------ ------------
INTEREST EXPENSE:
Interest on deposits 1,282,205 1,138,075 329,761 293,923
Interest on short-term borrowings 333,075 218,804 94,254 68,589
Interest on long-term debt and capital securities 255,618 270,893 64,926 65,693
------------ ------------- ------------ ------------
Total interest expense 1,870,898 1,627,772 488,941 428,205
------------ ------------- ------------ ------------
NET INTEREST INCOME 962,185 818,899 250,700 210,094
Provision for credit losses 32,000 12,000 4,000 3,000
------------ ------------- ------------ ------------
Net interest income after provision for
credit losses 930,185 806,899 246,700 207,094
------------ ------------- ------------ ------------
OTHER OPERATING INCOME:
Income from precious metals 24,700 38,049 6,467 3,709
Foreign exchange trading income 98,165 113,051 24,269 22,769
Trading account profits (losses) and commissions 52,941 24,746 13,752 (955)
Investment securities gains, net 23,247 25,663 7,803 16,371
Net gain on loans sold or held for sale 974 6,765 624 2,853
Commission income 71,393 56,935 18,559 13,867
Equity in earnings of affiliate 93,418 79,481 25,147 20,783
Other income 81,277 68,191 23,262 17,604
------------ ------------- ------------ ------------
Total other operating income 446,115 412,881 119,883 97,001
------------ ------------- ------------ ------------
OTHER OPERATING EXPENSES:
Salaries 256,002 237,414 66,210 60,310
Employee benefits 164,099 144,202 42,993 30,335
Occupancy, net 72,692 57,975 17,606 14,433
Restructuring and related charges - 120,000 - -
Other expenses 292,961 262,074 80,415 64,150
------------ ------------- ------------ ------------
Total other operating expenses 785,754 821,665 207,224 169,228
------------ ------------- ------------ ------------
INCOME BEFORE INCOME TAXES 590,546 398,115 159,359 134,867
Income taxes 171,706 109,466 50,813 40,010
------------ ------------- ------------ ------------
NET INCOME $ 418,840 $ 288,649 $ 108,546 $ 94,857
============ ============= ============ ============
NET INCOME APPLICABLE TO COMMON STOCK $ 387,322 $ 252,182 $ 100,595 $ 86,792
============ ============= ============ ============
Net income per common share:
Primary $6.97 $4.66 $1.82 $1.54
Fully diluted $6.97 $4.59 $1.82 $1.54
Average common shares outstanding:
Primary 55,595 54,060 55,244 56,214
Fully diluted 55,595 56,199 55,244 56,318
</TABLE>
<PAGE>
<TABLE>
REPUBLIC NATIONAL BANK OF NEW YORK
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
<CAPTION>
December 31,
------------------------------------------
1996 1995
----------------- -----------------
<S> <C> <C>
ASSETS
------
Cash and due from banks $ 668,596 $ 633,621
Interest-bearing deposits with banks 5,811,949 5,962,065
Precious metals 1,231,319 1,250,038
Securities held to maturity 7,839,329 4,292,649
Securities available for sale 10,894,777 10,036,416
----------------- -----------------
Total investment securities 18,734,106 14,329,065
Trading account assets 4,620,335 3,947,294
Federal funds sold and securities purchased
under resale agreements 2,039,987 1,679,268
Loans, net of unearned income 10,722,022 8,999,601
Allowance for possible credit losses (326,105) (274,109)
Customers' liability on acceptances 937,114 816,683
Accounts receivable and accrued interest 707,585 1,051,723
Investment in affiliate 806,274 722,466
Premises and equipment 405,926 387,589
Other assets 593,792 319,425
----------------- -----------------
Total assets $ 46,952,900 $ 39,824,729
================= =================
LIABILITIES AND STOCKHOLDER'S EQUITY
------------------------------------
Noninterest-bearing deposits:
In domestic offices $ 2,182,618 $ 1,662,722
In foreign offices 179,250 162,085
Interest-bearing deposits:
In domestic offices 12,354,338 8,287,291
In foreign offices 17,325,808 15,213,910
----------------- -----------------
Total deposits 32,042,014 25,326,008
Trading account liabilities 4,314,640 3,719,639
Short-term borrowings 3,579,807 2,873,499
Acceptances outstanding 938,097 818,441
Accounts payable and accrued expenses 795,743 2,161,828
Other liabilities 142,869 127,340
Long-term debt 1,390,226 1,355,111
Subordinated long-term debt, primarily with parent 575,000 681,440
Stockholder's equity:
Common stock, $100 par value 4,800,000 shares
authorized; 4,000,000 shares outstanding
in 1996 and 3,550,000 in 1995 400,000 355,000
Surplus 1,631,834 1,492,278
Retained earnings 1,109,513 990,194
Net unrealized appreciation (depreciation) on
securities available for sale, net of taxes 33,157 (76,049)
----------------- -----------------
Total stockholder's equity 3,174,504 2,761,423
----------------- -----------------
Total liabilities and stockholder's equity $ 46,952,900 $ 39,824,729
================= =================
</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
----------------------------------------------------------------------------
December 31, 1995 March 31, 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......... $ 6,039,098 $112,283 7.38% $ 5,940,713 $103,018 6.97%
Investment securities:(1)<F1>
Taxable..................................... 13,729,920 251,720 7.27 16,300,804 290,778 7.17
Exempt from federal income taxes............ 1,376,399 30,211 8.71 1,547,892 32,255 8.38
------------ ---------- ------------ ----------
Total investment securities................ 15,106,319 281,931 7.40 17,848,696 323,033 7.28
Trading account assets(2)<F2>................ 1,149,136 15,762 5.44 1,011,774 14,659 5.83
Federal funds sold and securities
purchased under resale agreements........... 2,109,420 34,338 6.46 1,226,349 17,781 5.83
Loans, net of unearned income:
Domestic offices............................ 7,078,604 146,639 8.22 7,974,773 162,573 8.20
Foreign offices............................. 3,199,842 55,627 6.90 3,197,212 52,960 6.66
------------ ---------- ------------ ----------
Total loans, net of unearned income........ 10,278,446 202,266 7.81 11,171,985 215,533 7.76
------------ ---------- ------------ ----------
Total interest-earning assets.............. 34,682,419 $646,580 7.40% 37,199,517 $674,024 7.29%
========== ========= ========== =========
Cash and due from banks....................... 633,116 727,158
Other assets.................................. 8,230,421 8,102,801
------------ ------------
Total assets............................... $43,545,956 $46,029,476
============ ============
Interest-bearing funds:
Consumer and other time deposits............. $7,583,024 $80,784 4.23% $9,802,068 $100,793 4.14%
Certificates of deposit...................... 858,534 11,754 5.43 747,108 9,348 5.03
Deposits in foreign offices.................. 13,613,388 201,385 5.87 13,287,239 193,361 5.85
------------ ---------- ------------ ----------
Total interest-bearing deposits............ 22,054,946 293,923 5.29 23,836,415 303,502 5.12
Trading account liabilities(2)<F2>........... 28,529 510 7.09 59,831 972 6.53
Short-term borrowings........................ 5,258,556 68,079 5.14 6,043,980 74,362 4.95
Total long-term debt and capital securities 4,012,247 65,693 6.50 3,923,446 63,725 6.53
------------ ---------- ------------ ----------
Total interest-bearing funds............... 31,354,278 $428,205 5.42% 33,863,672 $442,561 5.26%
========== ========= ========== =========
Noninterest-bearing deposits:
In domestic offices.......................... 1,611,414 1,810,408
In foreign offices........................... 124,381 134,439
Other liabilities............................. 7,516,317 7,200,682
Stockholders' equity:
Preferred stock.............................. 575,000 575,000
Common stockholders' equity.................. 2,364,566 2,445,275
------------ ------------
Total stockholders' equity................. 2,939,566 3,020,275
------------ ------------
Total liabilities and stockholders' equity.. $43,545,956 $46,029,476
============ ============
Interest income/earning assets................ $646,580 7.40% $674,024 7.29%
Interest expense/earning assets............... 428,205 4.90 442,561 4.79
Net interest differential..................... ---------- --------- ---------- ---------
$218,375 2.50% $231,463 2.50%
========== ========= ========== =========
<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 and capital securities.. 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
-----------------------------------
Average
Interest Rates
Average Income/ Earned/
Balance Expense Paid
------------ ---------- ---------
<S> <C> <C> <C>
Interest-earning assets:
Interest-bearing deposits with banks......... $ 5,190,003 $ 81,296 6.23%
Investment securities:(1)<F1>
Taxable..................................... 19,160,641 345,462 7.17
Exempt from federal income taxes............ 1,463,276 29,191 7.94
------------ -----------
Total investment securities................ 20,623,917 374,653 7.23
Trading account assets(2)<F2>................ 1,221,782 17,603 5.73
Federal funds sold and securities
purchased under resale agreements........... 2,060,396 28,578 5.52
Loans, net of unearned income:
Domestic offices............................ 8,714,159 175,186 8.00
Foreign offices............................. 4,081,954 69,732 6.80
------------ ----------
Total loans, net of unearned income........ 12,796,113 244,918 7.61
------------ ----------
Total interest-earning assets.............. 41,892,211 $747,048 7.09%
========== =========
Cash and due from banks....................... 748,582
Other assets.................................. 8,105,572
------------
Total assets............................... $50,746,365
============
Interest-bearing funds:
Consumer and other time deposits............. $11,089,384 $110,497 3.96%
Certificates of deposit...................... 1,462,261 18,411 5.01
Deposits in foreign offices.................. 15,417,782 200,853 5.18
------------ ----------
Total interest-bearing deposits............ 27,969,427 329,761 4.69
Trading account liabilities(2)<F2>........... 268,320 4,371 6.48
Short-term borrowings........................ 7,321,676 89,883 4.88
Total long-term debt and capital securities.. 4,103,689 64,926 6.29
------------ ----------
Total interest-bearing funds............... 39,663,112 $488,941 4.90%
========== =========
Noninterest-bearing deposits:
In domestic offices.......................... 2,213,503
In foreign offices........................... 144,765
Other liabilities............................. 5,460,550
Stockholders' equity:
Preferred stock.............................. 573,748
Common stockholders' equity.................. 2,690,687
------------
Total stockholders' equity................. 3,264,435
------------
Total liabilities and stockholders' equity.. $50,746,365
============
Interest income/earning assets................ $747,048 7.09%
Interest expense/earning assets............... 488,941 4.64
Net interest differential..................... ---------- ---------
$258,107 2.45%
========== =========
<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 non-interest bearing balances, which are included in other
assets or other liabilities, respectively.
</FN>
</TABLE>
