<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission file number 1-6152
THE BANK OF NEW YORK COMPANY, INC.
(Exact name of registrant as specified in its charter)
New York 13-2614959
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification number)
48 Wall Street, New York, New York 10286
(Address of principal executive offices) (Zip code)
(212) 495-1784
(Registrant's telephone number, including area code)
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 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
---- ----
The number of shares outstanding of the issuer's Common Stock,
$7.50 par value, was 392,190,416 shares as of October 31, 1996.
<PAGE> 2
THE BANK OF NEW YORK COMPANY, INC.
FORM 10-Q
TABLE OF CONTENTS
PART 1. FINANCIAL INFORMATION
- ------------------------------
Item 1. Financial Statements
Consolidated Balance Sheets
September 30, 1996 and December 31, 1995 3
Consolidated Statements of Income
For the Three Months and Nine Months
Ended September 30, 1996 and 1995 4
Consolidated Statement of Changes In
Shareholders' Equity
For the Nine Months Ended September 30, 1996 5
Consolidated Statements of Cash Flows
For the Nine Months Ended September 30,
1996 and 1995 6
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 9
PART 2. OTHER INFORMATION
- --------------------------
Item 6. Exhibits and Reports on Form 8-K 20
SIGNATURE 21
<PAGE> 3
PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements
- ------------------------------------------------------------------------------
THE BANK OF NEW YORK COMPANY, INC.
Consolidated Balance Sheets
(Dollars in millions, except per share amounts)
September 30, December 31,
1996 1995
---- ----
(Unaudited) (Note)
Assets
- ------
Cash and Due from Banks $ 4,617 $ 4,711
Interest-Bearing Deposits in Banks 1,168 982
Securities:
Held-to-Maturity (fair value of $1,165 in
1996 and $1,164 in 1995) 1,212 1,252
Available-for-Sale 3,915 3,618
------- -------
Total Securities 5,127 4,870
Trading Assets at Fair Value 875 816
Federal Funds Sold and Securities Purchased
Under Resale Agreements 503 936
Loans (less allowance for loan losses
of $957 in 1996 and $756 in 1995) 35,073 36,931
Premises and Equipment 883 902
Due From Customers on Acceptances 968 918
Accrued Interest Receivable 301 270
Other Assets 2,873 2,384
------- -------
Total Assets $52,388 $53,720
======= =======
Liabilities and Shareholders' Equity
- ------------------------------------
Deposits
Noninterest-Bearing (principally
domestic offices) $ 9,379 $10,465
Interest-Bearing
Domestic Offices 15,548 16,005
Foreign Offices 11,634 9,448
------- -------
Total Deposits 36,561 35,918
Federal Funds Purchased and Securities
Sold Under Repurchase Agreements 1,916 3,933
Other Borrowed Funds 4,189 3,737
Acceptances Outstanding 970 928
Accrued Taxes and Other Expenses 1,347 1,378
Accrued Interest Payable 195 190
Other Liabilities 277 556
Long-Term Debt 1,816 1,848
------- -------
Total Liabilities 47,271 48,488
------- -------
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 45,404 shares in 1996 and
49,504 shares in 1995 2 2
Common Stock - par value $7.50 per share,
authorized 800,000,000 shares, issued
431,317,022 shares in 1996 and
408,324,810 shares in 1995 3,235 3,062
Additional Capital 237 125
Retained Earnings 2,637 2,120
Securities Valuation Allowance 39 58
------- -------
6,261 5,478
Less: Treasury Stock - 45,711,104 shares in
1996 and 12,052,096 shares in 1995, at cost 1,126 228
Loan to ESOP - 1,317,060 shares, at cost 18 18
------- -------
Total Shareholders' Equity 5,117 5,232
------- -------
Total Liabilities and Shareholders' Equity $52,388 $53,720
======= =======
- ------------------------------------------------------------------------------
Note: The balance sheet at December 31, 1995 has been derived from the
audited financial statements at that date.
See accompanying Notes to Consolidated Financial Statements
<PAGE> 4
- ------------------------------------------------------------------------------
THE BANK OF NEW YORK COMPANY, INC.
Consolidated Statements of Income
(Unaudited)
(In millions, except per share amounts)
For the three For the nine
months ended months ended
September 30, September 30,
1996 1995 1996 1995
---- ---- ---- ----
Interest Income
- ---------------
Loans $ 724 $ 815 $2,318 $2,392
Securities
Taxable 61 59 181 175
Exempt from Federal Income Taxes 9 10 28 33
----- ----- ------ ------
70 69 209 208
Deposits in Banks 22 22 65 83
Federal Funds Sold and Securities
Purchased Under Resale Agreements 36 31 96 159
Trading Assets 4 10 13 23
----- ----- ------ ------
Total Interest Income 856 947 2,701 2,865
----- ----- ------ ------
Interest Expense
- ----------------
Deposits 282 309 860 952
Federal Funds Purchased and
Securities Sold Under Repurchase
Agreements 26 41 125 110
Other Borrowed Funds 49 52 148 198
Long-Term Debt 32 33 97 97
---- ---- ------ ------
Total Interest Expense 389 435 1,230 1,357
---- ---- ------ ------
Net Interest Income 467 512 1,471 1,508
- -------------------
Provision for Loan Losses 40 113 555 225
----- ----- ------ ------
Net Interest Income After
Provision for Loan Losses 427 399 916 1,283
----- ----- ------ ------
Noninterest Income
- ------------------
Processing Fees
Securities 164 103 484 303
Other 54 48 154 140
----- ----- ------ ------
218 151 638 443
Trust and Investment Fees 42 33 119 97
Service Charges and Fees 101 103 317 325
Securities Gains 15 17 78 37
Other 56 101 537 171
----- ----- ------ ------
Total Noninterest Income 432 405 1,689 1,073
----- ----- ------ ------
Noninterest Expense
- -------------------
Salaries and Employee Benefits 253 232 750 676
Net Occupancy 41 45 127 132
Furniture and Equipment 22 21 68 64
Other 139 126 410 393
----- ----- ------ ------
Total Noninterest Expense 455 424 1,355 1,265
----- ----- ------ ------
Income Before Income Taxes 404 380 1,250 1,091
Income Taxes 155 146 480 418
----- ----- ------ ------
Net Income $ 249 $ 234 $ 770 $ 673
- ---------- ===== ===== ====== ======
Net Income Available to
Common Shareholders $ 246 $ 232 $ 762 $ 665
- ----------------------- ===== ===== ====== ======
Per Common Share Data:
- ----------------------
Primary Earnings $0.60 $0.58 $1.86 $1.71
Fully Diluted Earnings 0.60 0.55 1.81 1.60
Cash Dividends 0.22 0.18 0.62 0.50
Fully Diluted Shares Outstanding 414 423 422 421
- ------------------------------------------------------------------------------
See accompanying Notes to Consolidated Financial Statements
<PAGE> 5
- -------------------------------------------------------------------------------
THE BANK OF NEW YORK COMPANY, INC.
Consolidated Statement of Changes in Shareholders' Equity
(Unaudited)
For the nine months ended September 30, 1996
(In millions)
Class A
Pre- Pre- Addi- Securities Treas- Loan
ferred ferred Common tional Retained Valuation ury to
Stock Stock Stock Capital Earnings Allowance Stock ESOP
------ ------- ------ ------- -------- ---------- ------ ----
Balance,
January 1, 1996 $111 $ 2 $3,062 $ 125 $2,120 $ 58 $228 $18
Changes:
Net Income 770
Cash Dividends
Common Stock (242)
Preferred Stock (8)
Conversion of
Debentures 87 26
Issuance of
Common Stock 86 86 (36)
Treasury Stock
Acquired 934
Net Unrealized
Loss on Secur-
ities Avail-
able for Sale (19)
Change in
Cumulative
Foreign
Currency
Translation
Adjustment (3)
---- --- ------ ------ ------ ---- ------ ---
Balance, September
30, 1996 $111 $ 2 $3,235 $ 237 $2,637 $ 39 $1,126 $18
==== === ====== ====== ====== ==== ====== ===
- -------------------------------------------------------------------------------
See accompanying Notes to Consolidated Financial Statements
<PAGE> 6
- -------------------------------------------------------------------------------
THE BANK OF NEW YORK COMPANY, INC.
Consolidated Statements of Cash Flows
(In millions)
(Unaudited)
For the nine months ended
September 30,
1996 1995
---- ----
Operating Activities
Net Income $ 770 $ 673
Adjustments to Determine Net Cash Provided (Used)
by Operating Activities
Provision for Losses on Loans and Other Real Estate 564 228
Gain on Sale of Loans (400) -
Depreciation and Amortization 178 145
Deferred Income Taxes 11 136
Securities Gains (78) (37)
Change in Trading Assets (59) 2
Change in Accruals and Other, Net (434) 22
------- -------
Net Cash Provided by Operating Activities 552 1,169
------- -------
Investing Activities
Change in Interest-Bearing Deposits in Banks (204) (85)
Purchases of Securities Held-to-Maturity (231) (389)
Maturities of Securities Held-to-Maturity 256 421
Purchases of Securities Available-for-Sale (1,112) (527)
Sales of Securities Available-for-Sale 309 420
Maturities of Securities Available-for-Sale 515 22
Net Principal Disbursed on Loans to Customers (2,392) (4,859)
Sales of Loans 3,988 326
Sales of Other Real Estate 58 18
Change in Federal Funds Sold and Securities
Purchased Under Resale Agreements 433 2,211
Purchases of Premises and Equipment (38) (34)
Proceeds from the Sale of Premises and Equipment 2 2
Acquisitions, Net of Cash Acquired (380) 100
Partial Sale of Unconsolidated Subsidiary 45 -
Other, Net (144) 8
------- -------
Net Cash Provided (Used) by Investing Activities 1,105 (2,366)
------- -------
Financing Activities
Change in Deposits 702 (1,050)
Change in Federal Funds Purchased and Securities
Sold Under Repurchase Agreements (2,017) 2,347
Change in Other Borrowed Funds 452 (1,008)
Proceeds from the Issuance of Long-Term Debt 100 142
Repayments of Long-Term Debt (17) (16)
Issuance of Common Stock 205 72
Treasury Stock Acquired (934) (80)
Cash Dividends Paid (250) (198)
------- -------
Net Cash Provided (Used) by Financing Activities (1,759) 209
------- -------
Effect of Exchange Rate Changes on Cash 8 (6)
------- -------
Change in Cash and Due From Banks (94) (994)
Cash and Due from Banks at Beginning of Period 4,711 2,903
------- -------
Cash and Due from Banks at End of Period $ 4,617 $ 1,909
======= =======
- -----------------------------------------------------------------------------
Supplemental Disclosure of Cash Flow Information
Cash Paid During the Year for:
Interest $ 1,225 $ 1,342
Income Taxes 485 287
Noncash Investing Activity (Primarily Foreclosure
of Real Estate) 50 51
- -----------------------------------------------------------------------------
See accompanying Notes to Consolidated Financial Statements
<PAGE> 7
THE BANK OF NEW YORK COMPANY, INC.
Notes to Consolidated Financial Statements
1. General
-------
The accounting and reporting policies of The Bank of New York
Company, Inc. (the Company), a bank holding company, and its
subsidiaries, conform with generally accepted accounting principles and
general practice within the banking industry. Such policies, except as
noted below, are consistent with those applied in the preparation of the
Company's annual financial statements.
The accompanying financial statements are unaudited. In the
opinion of management, all adjustments necessary for a fair presentation
of financial position, results of operations and cash flows for the
interim periods have been made. Such adjustments are of a normal
recurring nature.
The financial statements reflect a 2-for-1 common stock split
effective July 19, 1996.
2. Allowance for Loan Losses
-------------------------
Transactions in the allowance for loan losses are summarized as
follows:
Nine months ended
September 30,
(In millions) 1996 1995
---- -----
Balance, Beginning of Period $ 756 $ 792
Charge-offs (461) (323)
Recoveries 107 42
----- -----
Net Charge-Offs (354) (281)
Provision 555 225
Acquisition - 8
Credit Card Securitization - 3
----- -----
Balance, End of Period $ 957 $ 747
===== =====
3. Capital Transactions
--------------------
In the second quarter of 1996, the Company announced a plan to buy
back through the end of 1996 up to 20 million shares of its common stock
in addition to the 32 million share buyback plan announced in 1995. As
of October 31, 1996, 46 million shares had been repurchased under both
plans for $1.2 billion. The company expects to complete its buyback
<PAGE> 8
plans by December 31, 1996.
During the third quarter of 1996, warrant holders converted 2.04
million warrants into 8.16 million common shares, providing the Company
with $127 million in capital. In October 1996, warrant holders
converted 3.10 million warrants into 12.39 million common shares,
generating $192 million in capital.
Also in the third quarter of 1996, $94 million of convertible
subordinated debentures were converted into 10 million shares of common
stock. Primary earnings per share for the nine months ended September
30, 1996 would have decreased by $.03 if the conversion had occurred at
the beginning of the year.
4. Commitments and Contingent Liabilities
-------------------------------------
In the ordinary course of business, there are various claims
pending against the Company and its subsidiaries. In the opinion of
management, liabilities arising from such claims, if any, would not have
a material effect upon the Company's consolidated financial statements.
<PAGE> 9
Management's Discussion and Analysis of Financial Condition
- -----------------------------------------------------------
and Results of Operations
- -------------------------
The Company reported third quarter net income of $249 million, up
6% from $234 million earned in the same period last year. Third quarter
fully diluted earnings per share were $0.60, a 9% increase over the
$0.55 earned in the third quarter of 1995. Net income for the first
nine months was a record $770 million, an increase of 14% over last
year's $673 million. Earnings per share, on a fully diluted basis, were
$1.81 for the first nine months of 1996 compared with $1.60 in 1995. In
the third quarter, the conversion of 2 million warrants into 8 million
shares as well as the remaining outstanding warrants diluted quarterly
earnings by 4 cents per share. This was largely offset by the Company's
stock buyback program, which increased earnings per share by 3 cents.
Net interest income, on a taxable equivalent basis, declined to
$476 million in the third quarter compared with $521 million recorded in
the same period last year, reflecting the sale of the AFL-CIO Union
Privilege affinity credit card portfolio in the second quarter of 1996.
This decline was partially offset by the expiration of promotional rates
on credit card loans retained by the Company and the repricing of
certain accounts based on credit scores. Revenues from the Company's
securities processing business continued their strong advance, growing
60% over the third quarter of 1995. This significant increase reflected
continued strong internal growth as well as the acquisition of the
corporate trust business of NationsBank and the custody businesses of
BankAmerica and J.P. Morgan. All areas of securities processing
contributed to an internal growth rate of 15% with ADRs, government
securities clearance, and custody particularly strong.
Fees from other processing, which includes funds transfer, cash
management, and trade finance, grew 11% over last year's third quarter.
The largest contributor to this increase was fees from funds transfer
which were up 16%.
Trust and investment continued its strong performance with fees
growing 28% in the third quarter of 1996 over the third quarter of 1995,
reflecting new business and generally strong markets.
Return on average assets for the third quarter of 1996 was a
record 1.92% versus 1.82% in the second quarter on a normalized basis
with the net gain on the sale of the credit card portfolio excluded and
1.78% in the third quarter of 1995. Return on average common equity was
19.63% in the third quarter of 1996, compared with 19.51% in the second
quarter of 1996 on a normalized basis and 19.28% in the third quarter of
1995.
Tangible fully diluted earnings per share (earnings before the
amortization of goodwill and intangibles) were $0.64 per share in the
third quarter of 1996 compared with $0.59 per share in the same period
last year. On the same basis, tangible return on average assets was
2.12% in the third quarter of 1996 compared with a normalized 2.02% in
<PAGE> 10
the second quarter of 1996 and 1.92% in the third quarter of 1995; and
tangible return on average common equity was 27.83% in the third quarter
of 1996 compared with a normalized 27.59% in the second quarter of 1996,
and 23.58% in the third quarter of 1995.
CAPITAL
- -------
The Company's Tier 1 capital and Total capital ratios were 7.65%
and 12.25% at September 30, 1996 compared with 7.98% and 12.93% at June
30, 1996, and 8.89% and 13.62% at September 30, 1995. Tangible common
equity as a percent of total assets was 7.44% at September 30, 1996
compared with 7.51% at June 30, 1996 and 8.60% one year ago. The
leverage ratio was a strong 8.17% at September 30, 1996 compared with
7.76% at June 30, 1996 and 8.96% one year ago. The decline in the
capital ratios compared with September 1995 reflects the goodwill
associated with the securities processing acquisitions and the
repurchase as of September 30, 1996 of $1.0 billion (40 million shares)
of common stock under the Company's programs to buy back up to 52
million shares. Adding to capital and partially offsetting the decline,
was the exercise of warrants and the conversion of $94 million of
debentures into common stock.
NET INTEREST INCOME
- -------------------
3rd 2nd 3rd
Quarter Quarter Quarter Year-to-date
------- ------- ------- ------------
(In millions) 1996 1996 1995 1996 1995
--------------------------- -----------------
Net Interest Income $476 $499 $521 $1,499 $1,538
Net Interest Rate
Spread 3.29% 3.32% 3.47% 3.37% 3.41%
Net Yield on Interest
Earning Assets 4.28 4.26 4.61 4.35 4.52
On a taxable equivalent basis, net interest income amounted to
$476 million in the third quarter of 1996, compared with $521 million in
the same period of 1995. The net interest rate spread was 3.29% in the
third quarter of 1996, compared with 3.32% in the second quarter of 1996
and 3.47% one year ago. The net yield on interest-earning assets was
4.28% compared with 4.26% in the second quarter of 1996 and 4.61% in
last year's third quarter.
For the first nine months of 1996, net interest income, on a
taxable equivalent basis, amounted to $1,499 million compared with
$1,538 million in the same period of 1995. The year-to-date net
<PAGE> 11
interest rate spread was 3.37% in 1996 compared with 3.41% in 1995,
while the net yield on interest-earning assets was 4.35% in 1996 and
4.52% in 1995.
The decrease in net interest income and the net interest rate
spread reflects the sale of approximately $3.4 billion in AFL-CIO credit
card receivables in the second quarter of 1996, partially offset by the
expiration of promotional rates on credit card loans retained by the
Company and the repricing of certain accounts based on credit scores.
The decline in the net yield from the third quarter of 1995 is
attributable to the preceding factors as well as the costs of financing
the stock buyback program and the reduced value of noninterest bearing
sources of funds in a declining rate environment.
Interest lost on loans on nonaccrual status at September 30, 1996
and 1995 reduced net interest income by $4 million and $5 million for
the three months ended September 30, 1996 and 1995, and by $12 million
and $15 million for the nine months ended September 30, 1996 and 1995.
NONINTEREST INCOME
- ------------------
3rd Quarter Year-to-date
----------- ------------
(In millions) 1996 1995 1996 1995
---------------- ------------------
Processing Fees
Securities $164 $103 $ 484 $ 303
Other 54 48 154 140
---- ---- ------ ------
218 151 638 443
Trust and Investment Fees 42 33 119 97
Service Charges and Fees 101 103 317 325
Securities Gains 15 17 78 37
Foreign Exchange and
Other Trading Activities 12 18 43 43
Sale of Credit Card Portfolio - - 400 -
Other 44 83 94 128
---- ---- ------ ------
Total Noninterest Income $432 $405 $1,689 $1,073
==== ==== ====== ======
Securities processing fees increased 60% to $164 million compared
with $103 million in the third quarter of 1995. In the first nine
months of 1996, securities processing fees were $484 million compared
with $303 million in 1995. Strong internal growth in all areas and
acquisitions contributed to the increase in revenue. Fees from other
processing increased 11% over the third quarter of last year. The
Company reported $15 million of securities gains in the third quarter of
1996 compared with $17 million in the third quarter of 1995. Revenues
from foreign exchange were $11 million, declining 39% from the second
quarter's $18 million. Included in other income in the third quarters
of 1996 and 1995 were a gain of $21 million on the sale of a portion of
the Company's interest in Wing Hang Bank and a $47 million gain on the
sale of the ARCS mortgage servicing, respectively.
<PAGE> 12
TRADING ACTIVITIES
- ------------------
During the third quarter of 1996 the Company began providing its
customers with a broad array of foreign exchange risk management
products as a result of an agreement it had entered into with
Susquehanna Trading. Foreign exchange contracts held in the trading
account at September 30, 1996 are as follows:
3rd Quarter
September 30, 1996 1996 - Average
--------------------------- ------------------
Trading Account Trading Account
Notional ------------------ ------------------
(In millions) Amount Assets Liabilities Assets Liabilities
-------- ------ ----------- ------ -----------
Foreign Exchange Contracts:
Swaps $ 277 $ 5 $ 3 $ 5 $ 3
Written Options 19,533 - 267 - 154
Purchased Options 21,747 289 - 166 -
Commitments to Purchase
and Sell Foreign Exchange 47,582 386 329 354 307
The total trading portfolio's pre-tax earnings at risk averaged
approximately $2.3 million for the third quarter of 1996, and ranged
from approximately $1.5 million to $2.8 million. During the third
quarter of 1996 daily trading revenue averaged approximately $0.2
million, and ranged from approximately a gain of $1.7 million to a loss
of $0.4 million. During this period, trading revenue did not exceed the
Company's earnings at risk estimates on any given trading day.
NONINTEREST EXPENSE AND INCOME TAXES
- ------------------------------------
Total noninterest expense for the third quarter was $455 million,
down slightly from $457 million in the second quarter of this year, but
up from $424 million in the same period last year. The rise in expenses
compared with last year's third quarter was principally due to salary
and other expenses related to acquisitions of securities processing
businesses from J.P. Morgan, BankAmerica, and NationsBank as well as the
acquisition of The Putnam Trust Company. Year-to-date noninterest
expense was $1,355 million compared with $1,265 million in 1995.
Occupancy expense was down 4% compared with the first nine months of
1995.
The efficiency ratio for the third quarter was 50.9% compared with
49.8% reported in the second quarter of 1996 and 49.1% one year ago.
The increase is primarily the result of a time lag between the loss of
revenues from the Union card portfolio and commensurate expense
reductions. The efficiency ratios exclude the gain on the sale of the
credit card portfolio in the second quarter of 1996 and the gain on the
sale of the ARCS mortgage servicing in the third quarter of 1995.
The effective tax rates for the third quarter and first nine
<PAGE> 13
months of 1996 were 38.4% in both periods compared with 38.4% and 38.3%
for the third quarter and first nine months of 1995.
NONPERFORMING ASSETS
- --------------------
Change
3Q 1996 vs
(Dollars in millions) 9/30/96 6/30/96 2Q 1996
-----------------------------
Loans:
Commercial Real Estate $ 22 $ 9 $ 13
Other Commercial 61 76 (15)
Foreign 40 40 -
Community Banking 73 76 (3)
---- ----
Total Loans 196 201 (5)
Other Real Estate 61 70 (9)
---- ----
Total $257 $271 (14)
==== ====
Nonperforming Assets
Ratio 0.7% 0.8%
Allowance/Nonperforming
Loans 488.3 489.0
Allowance/Nonperforming
Assets 372.6 362.5
Nonperforming assets totaled $257 million at September 30, 1996,
compared with $271 million at June 30, 1996, a decrease of $14 million
or 5%. This was the twenty-first consecutive quarter of nonperforming
asset decreases.
At September 30, 1996, impaired loans (nonaccrual loans over $1
million) aggregated $136 million, of which $98 million exceeded their
fair value by $28 million. Impaired loans at September 30, 1995 totaled
$163 million, of which $98 million exceeded their fair value by $24
million. For the third quarters of 1996 and 1995, the average amount of
impaired loans was $138 million and $163 million and interest income
(cash received) on them was $79 thousand and $237 thousand.
Credit card loans are not placed on nonperforming status, but are
charged off when they become past due for certain periods. Additional
information regarding the credit quality of the Company's credit card
portfolio is provided in the sections "Loan Loss Provision and Net
Charge-Offs" and "Sector Profitability".
<PAGE> 14
LOAN LOSS PROVISION AND NET CHARGE-OFFS
- ---------------------------------------
3rd 2nd 3rd
Quarter Quarter Quarter Year-to-date
------- ------- ------- ------------
(In millions) 1996 1996 1995 1996 1995
----------------------- ------------
Provision $ 40 $425 $113 $555 $225
---- ---- ---- ---- ----
Net (Charge-offs) Recovery:
Commercial Real Estate (7) - - (10) (16)
Other Commercial (12) (7) (5) (18) (18)
Credit Card* (65) (187) (65) (348) (187)
Other Consumer (3) (2) (1) (7) (3)
Foreign 27 13 (9) 39 (22)
Other (5) (2) (6) (10) (12)
---- ---- ---- ---- ----
Total (65) (185) (86) (354) (258)
Other - - 7 - 11
---- ---- ---- ---- ----
Change in Allowance $(25) $240 $ 34 $201 $(22)
==== ==== ==== ==== ====
Other Real Estate
Expenses (Recovery) $ - $ 1 $ 1 $ (1) $ 4
* Includes a $21 million recovery in the third quarter of 1996
and a $99 million charge-off in the second quarter of 1996
related to past due and bankrupt Union credit card accounts
not sold.
The allowance for loan losses was $957 million, or 2.66% of loans
at September 30, 1996, compared with $982 million, or 2.76% of loans at
June 30, 1996.
For the nine months ended September 30, 1996 the provision
increased to $555 million compared with $225 million in the same period
of 1995. The higher provision is principally related to a higher level
of anticipated losses on certain Consumers Edge (registered trademark)
accounts opened in 1994 and 1995, and on the credit card portfolio
generally. The provision also covers $78 million of net charge-offs of
Union receivables not sold to Household, all of which were classified as
more than 90 days past due or bankrupt.
Foreign recoveries reflect a $20 million settlement with the
Republic of Croatia in the third quarter of 1996 and a $13 million
settlement with the Republic of Slovenia in the second quarter of 1996.
SECTOR PROFITABILITY
- --------------------
The Company has an internal information system used for management
purposes that produces sector performance data for Trust, and Securities
and Other Processing, Retail Banking, Corporate Banking, and Other
<PAGE> 15
Sectors. A set of measurement principles has been developed to help
insure that reported results of the sectors track their economic
performance.
Net interest income is computed on a taxable equivalent basis.
Support and other indirect expenses are allocated to sectors based on
general guidelines. The provision for loan losses is based on net
charge-offs incurred by each sector. Assets and liabilities are match
funded.
Based on this system, the sectors contributed to the Company's
profitability for the third quarter and first nine months as follows:
Trust, and
Securities
and Other Retail Corporate
(In millions) Processing Banking Banking
3rd Quarter 1996 1995 1996 1995 1996 1995
---- ---- ---- ---- ---- ----
Net Interest Income on a
Taxable Equivalent Basis $ 36 $ 41 $275 $328 $131 $132
Provision for Loan Losses 0 0 72 72 (8) 5
Noninterest Income 296 209 43 39 57 78
Noninterest Expense 205 154 165 167 54 63
---- ---- ---- ---- ---- ----
Income Before Taxes $127 $ 96 $ 81 $128 $142 $142
==== ==== ==== ==== ==== ====
(In millions) Other Total
---------- -----------
3rd Quarter 1996 1995 1996 1995
---- ---- ---- ----
Net Interest Income on a
Taxable Equivalent Basis $ 34 $ 20 $476 $521
Provision for Loan Losses (24) 36 40 113
Noninterest Income 36 79 432 405
Noninterest Expense 31 40 455 424
---- ---- ---- ----
Income Before Taxes $ 63 $ 23 $413 $389
==== ==== ==== ====
Trust, and
Securities
and Other Retail Corporate
(In millions) Processing Banking Banking
---------- ---------- ----------
Year-to-date 1996 1995 1996 1995 1996 1995
---- ---- ---- ---- ---- ----
Net Interest Income on a
Taxable Equivalent Basis $103 $118 $911 $959 $387 $397
Provision for Loan Losses 0 0 364 201 (10) 56
Noninterest Income 847 616 133 121 189 216
Noninterest Expense 594 459 505 519 162 183
---- ---- ---- ---- ---- ----
Income Before Taxes $356 $275 $175 $360 $424 $374
==== ==== ==== ==== ==== ====
(In millions) Other Total
---------- --------------
Year-to-date 1996 1995 1996 1995
---- ---- ------ ------
Net Interest Income on a
Taxable Equivalent Basis $ 98 $ 64 $1,499 $1,538
Provision for Loan Losses 201 (32) 555 225
Noninterest Income 520 120 1,689 1,073
Noninterest Expense 94 104 1,355 1,265
---- ---- ------ ------
Income Before Taxes $323 $112 $1,278 $1,121
==== ==== ====== ======
Trust, and Securities and Other Processing
- ------------------------------------------
In the Trust, and Securities and Other Processing Sector,
securities processing fees increased 60% to $164 million compared with
$103 million in the third quarter of 1995. In the first nine months of
1996, securities processing fees were $484 million compared with $303
million in 1995. The increase in revenue reflects continued strong
internal growth as well as the acquisition of the corporate trust
business of NationsBank and the custody businesses of BankAmerica and
J.P. Morgan. Internally generated growth, which was 15% for the third
quarter, was led by ADRs, government securities clearance, and custody.
Fee revenue from issuer services, custody, and securities industry
products were $55 million, $61 million, and $48 million in the third
quarter of 1996 compared with $40 million, $29 million, and $34 million
<PAGE> 16
in 1995. Fees from other processing increased 11% over the third
quarter of last year. Fees from trust and investment grew 28% in the
third quarter of 1996, reflecting new business and generally strong
markets. The rise in noninterest expense was principally due to salary
and other expenses related to acquisitions of securities processing
businesses from J.P. Morgan, BankAmerica and NationsBank.
Retail
- ------
The decrease in net interest income in the Retail Banking Sector
principally reflects the sale of approximately $3.4 billion in credit
card receivables in the second quarter of 1996, partially offset by the
expiration of promotional rates on credit card receivables and the
repricing of certain accounts based on credit scores. The decrease in
net interest income is also attributable to the decline in value of
noninterest bearing sources of funds in a declining rate environment.
The provision for loan losses in the Retail Banking Sector reflects
increased charge-offs on Consumers Edge (registered trademark) accounts
opened in 1994 and 1995. The provision also reflects a $21 million
recovery in the third quarter of 1996 and a $99 million charge-off in
the second quarter of 1996 related to past due and bankrupt Union
credit card accounts not sold. The table and discussion below provide
information relating to the Company's credit card portfolio excluding
the Union portfolio:
3rd 2nd 3rd
Quarter Quarter Quarter Year-to-date
------- ------- ------- ------------
(In millions) 1996 1996 1995 1996 1995
Number of Accounts 4.559 4.639 3.526 4.559 3.526
Period End Balance $5,348 $5,508 $4,386 $5,348 $4,386
Loans Delinquent:
30-59 Days $ 97 $ 74 $ 71 $ 97 $ 71
60-89 Days 72 57 44 72 44
90 or More Days 182 165 108 182 108
---- ---- ---- ---- ----
Total Loans Delinquent $351 $296 $223 $351 $223
Net Charge-offs $86 $70 $42 $218 $120
As a Percent of Average
Loans Outstanding:
Net Charge-offs 6.34% 5.29% 3.93% 5.49% 4.02%
Accounts Delinquent
More Than 30 Days 6.49 5.54 5.23 6.58 5.56
As a Percent of Period
End Balances:
Net Charge-offs 6.41 5.08 3.82 5.45 3.67
Accounts Delinquent
More Than 30 Days 6.56 5.37 5.09 6.56 5.09
During 1996 the Company's credit card portfolio has experienced
rising delinquencies and charge-offs. Loans delinquent more than 30
days increased from $296 million at June 30, 1996 to $351 million at
September 30, 1996. Loans past due more than 90 days increased from
<PAGE> 17
$165 million at June 30, 1996 to $182 million at September 30, 1996.
Credit card loans delinquent more than 90 days have a significant risk
of loss.
This adverse trend in credit quality reflects an industry-wide
deterioration in consumer credit performance as well as increased losses
attributable to bankruptcies resulting from a 1994 change in the
bankruptcy laws. Bankrupt accounts at September 30, 1996 were 80%
higher than at September 30, 1995. At September 30, 1996 bankrupt
accounts included $7 million that were not yet 30 days past due, up more
than 60% from the third quarter of 1995. The deterioration in credit
quality also reflects increased losses on Consumers Edge (registered
trademark) accounts opened in 1994 and 1995. The Company originated
1.029 million Consumers Edge (registered trademark) accounts in 1994;
however, as a result of rising delinquencies among these accounts, the
Company restricted growth of Consumers Edge (registered trademark)
accounts, and it originated only 851 thousand accounts in 1995. For the
first nine months of 1996 the Company originated 327 thousand Consumers
Edge (registered trademark) accounts. The Company's origination
activities in 1996 have focused on the Toys-R-Us (registered trademark)
card.
Future levels of charge-offs are difficult to predict because
they depend upon future economic trends, consumer behavior, growth in
the portfolio, competition, and other factors. Some of these factors
are beyond the control of the Company. The rising trend in credit card
delinquencies and personal bankruptcies may result in future charge-offs
exceeding historic levels.
Lower FDIC insurance premiums contributed to the decline in
noninterest expense in the Retail Sector.
Corporate
- ---------
Net interest income declined in the Corporate Banking Sector due
to a decline in the value of noninterest bearing sources of funds. The
decrease in the provision reflects a net recovery primarily due to the
settlement with the Republics of Croatia and Slovenia related to
Yugoslavian debt in 1996. Syndication fees and income from the
Company's offshore banking subsidiaries were lower in 1996 compared to
last year.
Other
- -----
The Other Sector reflects the difference between the total
provision for loan losses and that charged off by the sectors.
Noninterest income includes a gain of $21 million on the sale of a
portion of the Company's interest in Wing Hang Bank in the third quarter
of 1996, a $400 million gain on the sale of credit card loans in the
second quarter of 1996, and a $47 million gain on the sale of the ARCS
mortgage servicing in the third quarter of 1995. Securities gains and
foreign exchange and other trading activities decreased $8 million from
the third quarter of 1995.
<PAGE> 18
THE BANK OF NEW YORK COMPANY, INC.
Average Balances and Rates on a Taxable Equivalent Basis
For the three months ended
(Dollars in millions)
September 30, 1996 September 30, 1995
------------------------ ------------------------
Average Average Average Average
Balance Interest Rate Balance Interest Rate
------- -------- ------- ------- -------- -------
ASSETS
- ------
Interest-Bearing
Deposits in Banks
(primarily foreign) $ 1,469 $ 22 5.92% $ 1,451 $ 23 6.18%
Federal Funds Sold and
Securities Purchased
Under Resale Agreements 2,607 36 5.41 2,127 31 5.77
Loans
Domestic Offices 22,531 523 9.23 24,480 610 9.90
Foreign Offices 12,178 202 6.61 11,237 206 7.26
------- ------ ------- ------
Total Loans 34,709 725 8.31 35,717 816 9.07
------- ------ ------- ------
Securities
U.S. Government
Obligations 2,950 43 5.84 2,998 43 5.65
U.S. Government Agency
Obligations 449 7 6.35 398 6 6.35
Obligations of States and
Political Subdivisions 671 15 8.85 618 16 10.15
Other Securities,
including Trading
Securities 1,353 17 4.94 1,550 21 5.68
------- ------ ------- ------
Total Securities 5,423 82 6.03 5,564 86 6.21
------- ------ ------- ------
Total Interest-Earning
Assets 44,208 865 7.78% 44,859 956 8.46%
------ ------
Allowance for Loan Losses (971) (705)
Cash and Due from Banks 2,516 2,902
Other Assets 5,724 5,051
------- -------
TOTAL ASSETS $51,477 $52,107
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Interest-Bearing Deposits
Money Market Rate
Accounts $ 3,766 41 4.30% $ 3,370 38 4.46%
Savings 8,167 55 2.70 7,982 62 3.10
Certificates of Deposit
$100,000 & Over 811 11 5.32 1,592 22 5.56
Other Time Deposits 2,595 31 4.74 2,453 32 5.24
Foreign Offices 11,755 144 4.88 11,234 155 5.46
------- ------ ------- ------
Total Interest-Bearing
Deposits 27,094 282 4.14 26,631 309 4.61
Federal Funds Purchased
and Securities Sold
Under Repurchase
Agreements 1,977 26 5.11 2,846 41 5.67
Other Borrowed Funds 3,485 49 5.60 3,357 52 6.20
Long-Term Debt 1,862 32 6.86 1,768 33 7.32
------- ------ ------- ------
Total Interest-Bearing
Liabilities 34,418 389 4.49% 34,602 435 4.99%
------ ------
Noninterest-Bearing
Deposits 8,312 8,974
Other Liabilities 3,648 3,646
Preferred Stock 113 113
Common Shareholders'
Equity 4,986 4,772
------- -------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $51,477 $52,107
======= =======
Net Interest Earnings
and Interest Rate Spread $ 476 3.29% $ 521 3.47%
====== ======
Net Yield on Interest-
Earning Assets 4.28% 4.61%
==== ====
<PAGE> 19
THE BANK OF NEW YORK COMPANY, INC.
Average Balances and Rates on a Taxable Equivalent Basis
For the nine months ended
(Dollars in millions)
September 30, 1996 September 30, 1995
------------------------ ------------------------
Average Average Average Average
Balance Interest Rate Balance Interest Rate
------- -------- ------- ------- -------- -------
ASSETS
- ------
Interest-Bearing
Deposits in Banks
(primarily foreign) $ 1,516 $ 65 5.70% $ 1,761 $ 83 6.28%
Federal Funds Sold and
Securities Purchased
Under Resale Agreements 2,402 96 5.37 3,591 159 5.92
Loans
Domestic Offices 24,812 1,728 9.31 23,945 1,796 10.03
Foreign Offices 11,937 595 6.66 10,930 601 7.36
------- ------ ------- ------
Total Loans 36,749 2,323 8.45 34,875 2,397 9.19
------- ------ ------- ------
Securities
U.S. Government
Obligations 2,937 127 5.76 2,927 126 5.73
U.S. Government Agency
Obligations 460 22 6.30 343 16 6.33
Obligations of States and
Political Subdivisions 653 44 8.95 664 53 10.60
Other Securities,
including Trading
Securities 1,293 52 5.33 1,349 61 6.13
------- ------ ------- ------
Total Securities 5,343 245 6.09 5,283 256 6.48
------- ------ ------- ------
Total Interest-Earning
Assets 46,010 2,729 7.92% 45,510 2,895 8.51%
------ ------
Allowance for Loan Losses (808) (743)
Cash and Due from Banks 2,730 2,782
Other Assets 5,568 5,208
------- -------
TOTAL ASSETS $53,500 $52,757
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Interest-Bearing Deposits
Money Market Rate
Accounts $ 3,827 123 4.29% $ 3,397 112 4.42%
Savings 8,217 169 2.75 7,821 181 3.09
Certificates of Deposit
$100,000 & Over 940 37 5.32 1,767 76 5.74
Other Time Deposits 2,575 92 4.76 2,510 98 5.22
Foreign Offices 11,882 439 4.93 11,567 485 5.61
------- ------ ------- ------
Total Interest-Bearing
Deposits 27,441 860 4.18 27,062 952 4.70
Federal Funds Purchased
and Securities Sold
Under Repurchase
Agreements 3,165 125 5.26 2,537 110 5.77
Other Borrowed Funds 3,570 148 5.54 4,238 198 6.25
Long-Term Debt 1,888 97 6.86 1,758 97 7.37
------- ------ ------ ------
Total Interest-Bearing
Liabilities 36,064 1,230 4.55% 35,595 1,357 5.10%
------ ------
Noninterest-Bearing
Deposits 8,776 8,806
Other Liabilities 3,491 3,724
Preferred Stock 113 116
Common Shareholders'
Equity 5,056 4,516
------- ------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $53,500 $52,757
======= =======
Net Interest Earnings
and Interest Rate Spread $1,499 3.37% $1,538 3.41%
====== ======
Net Yield on Interest-
Earning Assets 4.35% 4.52%
==== ====
<PAGE> 20
PART 2. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
- -----------------------------------------
(a) The exhibits filed as part of this report are as follows:
Exhibit 11 - Statement Re: Computation of Earnings Per Common
Share for the Three and Nine Months Ended September 30, 1996 and
1995.
Exhibit 12 - Statement Re: Ratio of Earnings to Fixed Charges and
Ratio of Earnings to Combined Fixed Charges and Preferred Stock
Dividends for the Three and Nine months Ended September 30, 1996
and 1995.
Exhibit 27 - Statement Re: Financial Data Schedule containing
selected financial data at September 30, 1996 and for the Nine
Months ended September 30, 1996.
(b) The Company filed the following reports on Form 8-K since June 30,
1996:
On July 17, 1996, the Company filed a Form 8-K Current Report
(Items 5 and 7), which report included unaudited interim financial
information and accompanying discussion for the second quarter of
1996 contained in the Company's press release dated July 17, 1996.
On October 15, 1996, the Company filed a Form 8-K Current Report
(Items 5 and 7), which report included unaudited interim financial
information and accompanying discussion for the third quarter of
1996 contained in the Company's press release dated October 15,
1996.
<PAGE> 21
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.
THE BANK OF NEW YORK COMPANY, INC.
----------------------------------
(Registrant)
Date: November 12, 1996 By: \s\ Robert E. Keilman
-----------------------
Name: Robert E. Keilman
Title: Comptroller
<PAGE> 22
EXHIBIT INDEX
--------------
Exhibit Description
- ------- -----------
11 Computation of Earnings Per Common Share for
the Nine Months Ended September 30, 1996 and 1995.
12 Ratio of Earnings to Fixed Charges and Ratio of
Earnings to Combined Fixed Charges and Preferred
Stock Dividends for the Three and Nine Months Ended
September 30, 1996 and 1995.
27 Financial Data Schedule containing selected
financial data at September 30, 1996 and for the
Nine Months Ended September 30, 1996.
EXHIBIT 11
THE BANK OF NEW YORK COMPANY, INC.
Computation of Earnings Per Common Share
(In millions, except per share amounts)
For the Three For the Nine
Months Ended Months Ended
September 30, September 30,
1996 1995 1996 1995
---- ---- ---- ----
Weighted Average Number of Shares 386 386 389 382
Shares Assumed to be Issued on Conversion:
Warrants 21 14 21 8
----- ----- ----- -----
Weighted Average Number of Shares
of Common Stock for Primary Computation 407 400 410 390
Shares Assumed to be Issued on Conversion:
Debentures 5 18 8 20
Warrants 2 4 4 10
Cumulative Preferred Stock - 1 - 1
----- ----- ----- -----
Weighted Average Number of Shares of
Common Stock Assuming Full Dilution 414 423 422 421
===== ===== ===== =====
Net Income $ 249 $ 234 $ 770 $ 673
Dividend Requirements on Preferred Stock 3 2 8 8
----- ----- ----- -----
Net Income Available
to Common Shareholders 246 232 762 665
Interest on Convertible
Debentures, Net of Tax 1 2 3 6
----- ----- ----- -----
Net Income Available to Common
Shareholders, Assuming Full Dilution $ 247 $ 234 $ 765 $ 671
===== ===== ===== =====
Earnings Per Share:
Primary $0.60 $0.58 $1.86 $1.71
Fully Diluted 0.60 0.55 1.81 1.60
EXHIBIT 12
THE BANK OF NEW YORK COMPANY, INC.
Ratios of Earnings to Fixed Charges and Ratios
of Earnings to Combined Fixed Charges
and Preferred Stock Dividends
(Dollars in millions)
For the three For the nine
months ended months ended
September 30, September 30,
1996 1995 1996 1995
EARNINGS ---- ---- ---- ----
- --------
Income Before Income Taxes $404 $380 $1,250 $1,091
Fixed Charges, Excluding Interest
on Deposits 116 134 394 430
---- ---- ------ ------
Income Before Income Taxes and Fixed
Charges, Excluding Interest on Deposits 520 514 1,644 1,521
Interest on Deposits 282 309 860 952
---- ---- ------ ------
Income Before Income Taxes and Fixed
Charges, Including Interest on Deposits $802 $823 $2,504 $2,473
==== ==== ====== ======
FIXED CHARGES
- -------------
Interest Expense, Excluding Interest
on Deposits $107 $126 $ 370 $ 405
One-Third Net Rental Expense* 9 8 24 25
---- ---- ------ ------
Total Fixed Charges, Excluding Interest
on Deposits 116 134 394 430
Interest on Deposits 282 309 860 952
---- ---- ------ ------
Total Fixed Charges, Including Interest
on Deposits $398 $443 $1,254 $1,382
==== ==== ====== ======
PREFERRED STOCK DIVIDENDS, PRE-TAX BASIS $ 4 $ 4 $ 12 $ 12
- ---------------------------------------- ==== ==== ====== ======
EARNINGS TO FIXED CHARGES RATIOS
- --------------------------------
Excluding Interest on Deposits 4.48x 3.84x 4.17x 3.54x
Including Interest on Deposits 2.02 1.86 2.00 1.79
EARNINGS TO COMBINED FIXED CHARGES
& PREFERRED STOCK DIVIDENDS RATIOS
- ----------------------------------
Excluding Interest on Deposits 4.33 3.72 4.05 3.44
Including Interest on Deposits 2.00 1.84 1.98 1.77
* The proportion deemed representative of the interest factor.
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
This schedule contains summary financial information which is qualified entirely
by reference to The Bank of New York Company, Inc.'s Form 10-Q for the period
ended September 30, 1996.
</LEGEND>
<CIK> 0000009626
<NAME> THE BANK OF NEW YORK COMPANY, INC.
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-1-1996
<PERIOD-END> SEP-30-1996
<CASH> 4,617
<INT-BEARING-DEPOSITS> 1,168
<FED-FUNDS-SOLD> 503
<TRADING-ASSETS> 875
<INVESTMENTS-HELD-FOR-SALE> 3,915
<INVESTMENTS-CARRYING> 1,212
<INVESTMENTS-MARKET> 1,165
<LOANS> 36,030
<ALLOWANCE> 957
<TOTAL-ASSETS> 52,388
<DEPOSITS> 36,561
<SHORT-TERM> 6,105
<LIABILITIES-OTHER> 1,819
<LONG-TERM> 1,816
0
113
<COMMON> 3,235
<OTHER-SE> 1,769
<TOTAL-LIABILITIES-AND-EQUITY> 52,388
<INTEREST-LOAN> 2,318
<INTEREST-INVEST> 209
<INTEREST-OTHER> 174
<INTEREST-TOTAL> 2,701
<INTEREST-DEPOSIT> 860
<INTEREST-EXPENSE> 1,230
<INTEREST-INCOME-NET> 1,471
<LOAN-LOSSES> 555
<SECURITIES-GAINS> 78
<EXPENSE-OTHER> 1,355
<INCOME-PRETAX> 1,250
<INCOME-PRE-EXTRAORDINARY> 770
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 770
<EPS-PRIMARY> 1.86<F1>
<EPS-DILUTED> 1.81<F1>
<YIELD-ACTUAL> 4.35
<LOANS-NON> 196
<LOANS-PAST> 226
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 756
<CHARGE-OFFS> 461
<RECOVERIES> 107
<ALLOWANCE-CLOSE> 957
<ALLOWANCE-DOMESTIC> 732
<ALLOWANCE-FOREIGN> 39
<ALLOWANCE-UNALLOCATED> 186
<FN>
<F1>Per common share data has been adjusted to reflect the effect of the 2-for-1
common stock split effective July 19, 1996. Prior Financial Data Schedules
have not been restated for this stock split.
</FN>
</TABLE>
