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 (Date of earliest event
reported): April 17, 1995
THE BANK OF NEW YORK COMPANY, INC.
----------------------------------
(exact name of registrant as specified in its charter)
NEW YORK
--------
(State or other jurisdiction of incorporation)
1-6152 13-2614959
------ ----------
(Commission file number) (I.R.S. employer identification
number)
48 Wall Street, New York, NY 10286
---------------------------- -----
(Address of principal executive (Zip code)
offices)
212 - 495 - 1784
----------------
(Registrant's telephone number,
including area code)
<PAGE>
ITEM 5. Other Events
------------
First Quarter Financial Results
--------------------------------
On April 17, 1995 The Bank of New York
Company, Inc. (the "Company") issued a press
release containing unaudited interim financial
information and accompanying discussion for the
first quarter of 1995. Exhibit 99 is a copy
of such press release and is incorporated herein
by reference.
ITEM 7. Financial Statements, Pro Forma Financial Information
and Exhibits
-----------------------------------------------------
(c) Exhibit Description
------- -----------
99 Unaudited interim financial
information and accompanying
discussion for the first quarter
of 1995 contained in the press
release dated April 17, 1995, of The
Bank of New York Company, Inc.
<PAGE>
SIGNATURE
---------
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.
Dated: April 17, 1995
THE BANK OF NEW YORK COMPANY, INC.
(Registrant)
By: /s/ Robert E. Keilman
------------------------
Name: Robert E. Keilman
Title: Comptroller
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
99 Unaudited interim financial
information and accompanying
discussion for the first quarter
of 1995 contained in the press
release dated April 17, 1995, of The
Bank of New York Company, Inc.
<PAGE> 1
Exhibit 99
The Bank of New York Company, Inc. NEWS
- -----------------------------------------------------------------------
48 Wall Street, New York, NY 10286
Contact:
For Release: PUBLIC AND INVESTOR RELATIONS DEPT.
IMMEDIATELY Paul J. Leyden, SVP
(212) 495-1041
Andrew M. Merrill, VP
(212) 495-1619
Rhonda Barnat, AVP
(212) 495-1725
THE BANK OF NEW YORK COMPANY, INC. REPORTS
RECORD FIRST QUARTER E.P.S.
First Quarter E.P.S. Rises 22% to $1.06;
ROE of 19.98% and ROA of 1.65% Set Quarterly Records
NEW YORK, N.Y., April 17, 1995 -- The Bank of New York Company, Inc.
(NYSE: BK) reported first quarter fully diluted earnings per share of
$1.06, a 22% increase over the 87 cents earned in the first quarter of
1994. Net income rose by 20% to $213 million from $178 million earned in
the same period last year.
Net interest income, on a taxable equivalent basis, totaled $502
million in the first quarter, a $106 million or 27% increase over the
first quarter of last year. Tax equivalent net interest income was up
from the fourth quarter of 1994, as it increased by $16 million, or 3%.
The net yield on interest earning assets of 4.49%, a quarterly record, was
10 basis points higher than in the fourth quarter of 1994 and 60 basis
<PAGE> 2
points higher than the first quarter of 1994. The Company continued to
shift its asset mix toward higher yielding assets, including credit cards.
Revenues from the Company's securities processing business grew 11% and
were led by strong performances from ADRs, corporate trust, mutual funds
custody and master trust. Continued strict control of operating costs
also contributed to higher earnings.
Return on average common equity was a record 19.98% in the first
quarter of 1995, compared with 19.03% in the fourth quarter of 1994 and
18.55% in the first quarter of last year. Return on average assets for
the first quarter was a record 1.65% versus 1.55% in the fourth quarter
and 1.50% in the first quarter of 1994.
The Company completed a 5 million share buyback program initially
announced in the first quarter of last year. All of the repurchased
shares were used in connection with certain employee benefit plans or are
currently being held in Treasury.
The Company's estimated Tier I capital and Total capital ratios were
8.59% and 13.34% at March 31, 1995 compared with 8.45% and 13.43% at
December 31, 1994, and 8.28% and 12.89% at March 31, 1994. Tangible
common equity as a percent of total assets was 7.40% at March 31, 1995
compared with 7.39% at December 31, 1994 and 6.84% one year ago.
<PAGE> 3
NET INTEREST INCOME
(in millions) 1995 1994
------- ----------------
1st 4th 1st
Quarter Quarter Quarter
------- ------- -------
Net Interest Income $502 $486 $396
Net Interest Rate
Spread 3.41% 3.44% 3.18%
Net Yield on Interest
Earning Assets 4.49 4.39 3.89
On a taxable equivalent basis, net interest income amounted to a
record $502 million in the first quarter of 1995, compared with $396
million in the same period of 1994, an increase of 27%. The net interest
rate spread was 3.41% in the first quarter of 1995 compared with 3.44% in
the fourth quarter of 1994 and 3.18% one year ago. The net yield on
interest earning assets was a record 4.49% in the first quarter of 1995
compared with 4.39% in the fourth quarter of 1994 and 3.89% in the same
period last year. The return of a portion of the Company's credit card
securitization to its balance sheet was of modest benefit to the yield.
The Company's credit card business continued its strong growth.
Managed outstandings were up by 21% to $7.6 billion from $6.3 billion and
the number of card accounts increased by 16% to 5.7 million from 4.9
million one year ago.
<PAGE> 4
NONINTEREST INCOME
(In millions)
1st Quarter
----------------
1995 1994
------- -------
Processing Fees
Securities $ 98 $ 88
Other 44 42
---- ----
142 130
Trust and Investment Fees 32 33
Income from Credit Card
Securitization 3 12
Other Service Charges and Fees 110 107
Securities Gains 7 12
Foreign Exchange and
Other Trading Activities 12 16
Other 13 40
---- ----
Total Noninterest Income $319 $350
==== ====
Securities processing fees increased 11% to $98 million compared to
$88 million in the first quarter of 1994. All of the Company's securities
processing businesses showed increases compared with the fourth quarter of
1994, with the strongest performances coming from ADRs, corporate trust,
mutual funds custody and master trust. Trade finance revenue increased by
22% over the first quarter of last year. Total revenues in funds transfer
were up 20% from last year. However, service fees in the funds transfer and
deposit services areas were lower this quarter due to customers' continued
use of compensating balances in lieu of fees in the
<PAGE> 5
current high interest rate environment. Credit card
interchange income, which increased 50% to $17 million in the first
quarter, and syndication fees were also areas of strength. Other
noninterest income was $13 million versus $40 million in the first quarter
of 1994. The difference relates principally to the inclusion of a $22
million non-recurring pre-tax gain on the sale of a portion of the
Company's interest in Wing Hang Bank, Ltd. in the first quarter of 1994.
The return of the securitized credit card receivables to the balance
sheet reduced noninterest income by $10 million compared to last year's
first quarter.
NONINTEREST EXPENSE AND INCOME TAXES
The Company continued its strict control of expenses in the first
quarter of 1995. Total noninterest expense was up only 3% to $416 million
from $403 million in the same period last year. Salaries and employee
benefits increased 5% in the first quarter to $222 million from $211
million in the same period last year due in part to acquisitions in the
Company's securities processing and factoring businesses and growth in its
credit card business. Occupancy and furniture and equipment expense were
down 4% from last year's first quarter. The effective tax rate for the
first quarter of 1995 was 38.1% compared with 37.5% for the first quarter
of 1994.
<PAGE> 6
NONPERFORMING ASSETS
(dollars in millions)
Change
1Q 1995 vs
3/31/95 12/31/94 4Q 1994
-------------------------------------
Loans:
HLT $ 23 $ 24 (4)%
Commercial Real Estate 67 63 6
Other Commercial 47 50 (6)
Foreign 31 32 (3)
LDC 34 45 (24)
Community Banking 79 83 (5)
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Total Loans 281 297 (5)
Other Real Estate 57 56 2
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Total $ 338 $ 353 (4)
===== =====
Nonperforming Assets Ratio 1.0% 1.1%
Allowance/Nonperforming Loans 266.5 266.7
Allowance/Nonperforming Assets 221.5 224.4
This was the fifteenth consecutive quarter of nonperforming assets
decreases. NPAs totaled $338 million at March 31, 1995, compared with
$353 million at December 31, 1994, a decrease of $15 million or 4%.
<PAGE> 7
LOAN LOSS PROVISION AND NET CHARGE-OFFS
(in millions)
1st 4th 1st
Quarter Quarter Quarter
1995 1994 1994
------------------------------------
Provision $ 50 $ 39 $ 45
----- ----- -----
Net charge-offs:
HLT $ - $ (1) -
Commercial Real Estate (4) - (5)
Other Commercial (4) (16) (20)
Consumer (63) (48) (39)
Foreign (11) (17) -
Other (3) (1) (19)
----- ----- -----
Total (85) (83) (83)
Acquisition 1 - -
Credit Card Securitization 2 3 2
----- ----- -----
Decrease in Regular Allowance $ (32) $ (41) $ (36)
===== ===== =====
Other Real Estate Expenses $ 1 $ 4 $ 2
The increase in the provision was principally related to growth in the
credit card portfolio, particularly in the Consumers Edge (registered
trademark) product line. The allowance for loan losses was $749 million,
or 2.19% of loans at March 31, 1995, compared with $792 million, or 2.40%
of loans at December 31, 1994. The Company charged off $11 million of
loans to Yugoslavia.
***************************
(Financial highlights and detailed financial statements are attached.)
<PAGE> 8
THE BANK OF NEW YORK COMPANY, INC.
Financial Highlights
(Unaudited)
(Dollars in millions, except per share amounts)
For the Three Months Ended March 31: 1995 1994 Change
- ------------------------------------ ---- ---- ------
Net Income $ 213 $ 178 19.7%
Per Common Share:
Primary Earnings $ 1.12 $ 0.93 20.4
Fully Diluted Earnings 1.06 0.87 21.8
Cash Dividends 0.32 0.225 42.2
Return on Average Common Shareholders'
Equity 19.98% 18.55%
Return on Average Assets 1.65 1.50
As of March 31:
- ---------------
Assets $52,280 $48,008 8.9%
Loans 34,237 32,560 5.2
Securities 4,697 5,619 -16.4
Deposits - Domestic 23,535 23,637 -0.4
- Foreign 11,370 9,120 24.7
Long-Term Debt 1,732 1,540 12.5
Preferred Shareholders' Equity 117 138 -15.2
Common Shareholders' Equity 4,430 3,891 13.9
Common Shareholders' Equity Per Share 23.51 20.69 13.6
Market Value Per Share of Common Stock 33.00 25.50 29.4
Allowance for Loan Losses as a Percent
of Loans 2.19% 2.87%
Tier I Capital Ratio 8.59 8.28
Total Capital Ratio 13.34 12.89
Leverage Ratio 8.10 7.66
Tangible Common Equity Ratio 7.40 6.84
<PAGE> 9
THE BANK OF NEW YORK COMPANY, INC.
Consolidated Statements of Income
(Unaudited)
(In millions, except per share amounts)
For the three months ended
March 31,
1995 1994
---- ----
Interest Income
Loans $ 765 $ 512
Securities
Taxable 56 57
Exempt from Federal Income Taxes 12 15
----- -----
68 72
Deposits in Banks 30 8
Federal Funds Sold and Securities
Purchased Under Resale Agreements 66 19
Trading Assets 7 15
----- -----
Total Interest Income 936 626
----- -----
Interest Expense
Deposits 308 166
Federal Funds Purchased and
Securities Sold Under
Repurchase Agreements 32 27
Other Borrowed Funds 72 23
Long-Term Debt 33 27
---- ----
Total Interest Expense 445 243
---- ----
Net Interest Income 491 383
Provision for Loan Losses 50 45
----- -----
Net Interest Income After
Provision for Loan Losses 441 338
----- -----
Noninterest Income
Processing Fees
Securities 98 88
Other 44 42
----- -----
142 130
Trust and Investment Fees 32 33
Service Charges and Fees 119 119
Securities Gains 7 12
Other 19 56
----- -----
Total Noninterest Income 319 350
----- -----
Noninterest Expense
Salaries and Employee Benefits 222 211
Net Occupancy 44 47
Furniture and Equipment 22 22
Other 128 123
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Total Noninterest Expense 416 403
----- -----
Income Before Income Taxes 344 285
Income Taxes 131 107
----- -----
Net Income $ 213 $ 178
===== =====
Net Income Available to
Common Shareholders $ 210 $ 174
===== =====
Per Common Share Data:
Primary Earnings $1.12 $0.93
Fully Diluted Earnings 1.06 0.87
Cash Dividends 0.32 0.225
Average Common Shares Outstanding 188 188
<PAGE> 10
THE BANK OF NEW YORK COMPANY, INC.
Consolidated Statements of Condition
(Unaudited)
(Dollars in millions, except per share amounts)
March 31, December 31,
1995 1994
---- ----
Assets
Cash and Due from Banks $ 3,723 $ 2,903
Interest-Bearing Deposits in Banks 954 992
Securities:
Held to Maturity 2,859 2,930
Available for Sale 1,838 1,721
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Total Securities 4,697 4,651
Trading Assets at Fair Value 1,635 940
Federal Funds Sold and Securities Purchased
Under Resale Agreements 3,412 3,019
Loans (Less allowance for loan losses
of $749 in 1995 and $792 in 1994) 33,488 32,291
Premises and Equipment 906 914
Due from Customers on Acceptances 1,035 810
Accrued Interest Receivable 274 290
Other Assets 2,156 2,069
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Total Assets $52,280 $48,879
======= =======
Liabilities and Shareholders' Equity
Deposits
Noninterest-Bearing (principally
domestic offices) $ 8,173 $ 8,579
Interest-Bearing
Domestic Offices 15,428 14,871
Foreign Offices 11,304 10,641
------- -------
Total Deposits 34,905 34,091
Federal Funds Purchased and Securities
Sold Under Repurchase Agreements 1,949 1,502
Other Borrowed Funds 6,337 4,738
Acceptances Outstanding 1,036 812
Accrued Taxes and Other Expenses 1,135 1,049
Accrued Interest Payable 247 213
Other Liabilities 392 404
Long-Term Debt 1,732 1,774
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Total Liabilities 47,733 44,583
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Shareholders' Equity
Preferred Stock-no par value, authorized
5,000,000 shares, outstanding
184,000 shares 111 111
Class A Preferred Stock - par value
$2.00 per share, authorized 5,000,000
shares, outstanding 219,604 shares
in 1995 and 322,104 shares in 1994 6 8
Common Stock-par value $7.50 per share,
authorized 350,000,000 shares, issued
193,914,725 shares in 1995 and
190,213,322 shares in 1994 1,454 1,427
Additional Capital 900 858
Retained Earnings 2,196 2,048
Securities Valuation Allowance (3) (58)
------- -------
4,664 4,394
Less: Treasury Stock (3,133,305 shares in
1995 and 2,566,071 in 1994), at cost 97 78
Loan to ESOP (712,695 shares) at cost 20 20
------- -------
Total Shareholders' Equity 4,547 4,296
------- -------
Total Liabilities and Shareholders' Equity $52,280 $48,879
======= =======
<PAGE> 11
THE BANK OF NEW YORK COMPANY, INC.
Average Balances and Rates on a Taxable Equivalent Basis
Preliminary
(Dollars in millions)
For the three For the three
months ended months ended
March 31, 1995 March 31, 1994
------------------------ -------------------------
Average Average Average Average
Balance Interest Rate Balance Interest Rate
------- -------- ------- ------- -------- ------
ASSETS
- ------
Interest-Bearing
Deposits in Banks
(primarily foreign) $ 1,907 $ 30 6.31% $ 563 $ 8 5.39%
Federal Funds Sold and
Securities Purchased
Under Resale Agreements 4,598 66 5.86 2,444 19 3.23
Loans
Domestic Offices 23,101 575 10.10 21,309 398 7.58
Foreign Offices 10,554 192 7.36 10,005 116 4.69
------- ------ ------- ------
Total Loans 33,655 767 9.24 31,314 514 6.66
------- ------ ------- ------
Securities
U.S. Government
Obligations 2,871 41 5.82 3,688 48 5.30
U.S. Government Agency
Obligations 318 5 6.33 366 6 6.41
Obligations of States and
Political Subdivisions 713 19 10.71 1,024 24 9.55
Other Securities,
including Trading
Securities 1,232 19 6.24 1,822 20 4.35
------- ------ ------- ------
Total Securities 5,134 84 6.63 6,900 98 5.74
------- ------ ------- ------
Total Interest-Earning
Assets 45,294 947 8.48% 41,221 639 6.29%
------ ------
Allowance for Loan Losses (787) (971)
Cash and Due from Banks 2,658 3,000
Other Assets 5,118 5,116
------- -------
TOTAL ASSETS $52,283 $48,366
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Interest-Bearing Deposits
Money Market Rate
Accounts $ 3,414 36 4.26% $ 3,626 22 2.47%
Savings 7,692 57 2.99 8,383 45 2.19
Certificates of Deposit
$100,000 & Over 1,863 26 5.76 885 7 3.06
Other Time Deposits 2,489 31 5.07 2,268 24 4.37
Foreign Offices 11,412 158 5.61 8,739 68 3.17
------ ------ ------- ------
Total Interest-Bearing
Deposits 26,870 308 4.65 23,901 166 2.83
Federal Funds Purchased
and Securities Sold
Under Repurchase
Agreements 2,277 32 5.76 3,713 27 2.90
Other Borrowed Funds 4,691 72 6.25 2,610 23 3.63
Long-Term Debt 1,781 33 7.36 1,557 27 6.86
------ ------ ------ ------
Total Interest-Bearing
Liabilities 35,619 445 5.07% 31,781 243 3.11%
------ ------
Noninterest-Bearing
Deposits 8,757 9,440
Other Liabilities 3,527 3,106
Preferred Stock 117 243
Common Shareholders'
Equity 4,263 3,796
------ ------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $52,283 $48,366
======= =======
Net Interest Earnings
and Interest Rate Spread $ 502 3.41% $ 396 3.18%
====== ======
Net Yield on Interest-
Earning Assets 4.49% 3.89%
==== ====
