EXHIBIT (99)(B)
FIRST UNION CORPORATION
EARNINGS PER SHARE (1)
1995 EST. 1996 EST. 1997 (5)
$MM EPS $MM EPS $MM EPS
1 First Union........................................................ 1,006 $ 5.75 1,172 $ 6.55 1,289 $ 7.20
2 First Fidelity..................................................... 459 $ 5.45 494 $ 5.90 543 $ 6.48
ADJUSTMENT TO EARNINGS
3 Expense Efficiencies............................................... 10 64 91
4 Revenue Enhancements............................................... -- 48 74
5 Excess Capital Utilization......................................... -- 15 55
6 Total Adjustments.................................................. 10 127 220
7 Total on New Shares (2)(3)(4)...................................... 1,475 $ 5.29 1,793 $ 6.31 2,052 $ 7.23
(1) 1995 and 1996 earnings per share are estimated. Like all estimates of this
type, there are many factors, such as changes in economic conditions, that
are beyond our control. These factors could affect actual results. As a
result, there will be differences between such estimates and the actual
results, which could be material. These estimates are necessarily
speculative in nature and no assurance can be given that these estimates
will be realized.
(2) Excludes the impact of reduced FDIC insurance from 23 cents to 4 cents. The
impact of this reduction on the combined company is estimated to be
approximately 15 cents per share in '95 and 30 cents per share thereafter.
(3) Excludes 1995 after-tax one-time merger expenses of $140 million or 50 cents
per share.
(4) Assumes 279 million shares in 1995, and 284 million shares in 1996 and 1997.
(5) 1997 earnings per share are not estimated. Such earnings are presented for
illustrative purposes only and are based upon the estimated 1996 earnings
per share plus 10%.
ESTIMATED INCREMENTAL REVENUE (1)
1996 1997 1998
($ MILLIONS)
Capital Markets Products (Excluding risk management products)........................................ 21 46 65
Risk Management Products............................................................................. 6 13 19
Dealer Division...................................................................................... 5 13 19
International........................................................................................ 9 10 10
Total Capital Markets................................................................................ 41 82 113
Capital Management/Trust............................................................................. 17 18 19
Card Products........................................................................................ 11 11 11
Insurance............................................................................................ 4 4 4
Other................................................................................................ 6 7 8
Total Pre-Tax........................................................................................ 79 122 155
After-Tax.......................................................................................... 48 74 94
EPS Impact........................................................................................... $0.17 $0.26 $0.33
(1) Like all estimates of this type, there are many factors, such as changes in
economic conditions, that are beyond our control. These factors could affect
actual results. As a result, there will be differences between such
estimates and the actual results, which could be material. These estimates
are necessarily speculative in nature and no assurance can be given that
these estimates will be realized. These estimates assume the transaction
will close on 12/31/95.
ESTIMATED EXPENSE SAVINGS (1)
1995 1996 1997 1998
($ MILLIONS)
Automation & Operations...................................................................... 4 37 55 68
General Banking.............................................................................. 3 23 27 33
Capital Markets.............................................................................. 1 12 16 19
Marketing.................................................................................... 2 11 13 17
Consumer Lending............................................................................. 2 7 7 9
Corporate Real Estate........................................................................ 2 6 9 12
Finance...................................................................................... 1 3 7 10
Mortgage Banking............................................................................. 0 3 7 10
Purchasing................................................................................... 0 3 6 8
Other........................................................................................ 1 1 2 3
Total Pre-Tax................................................................................ 16 106 149 189
After-Tax.................................................................................. 10 64 91 115
EPS Impact................................................................................... $.03 $0.23 $0.32 $0.40
(1) Like all estimates of this type, there are many factors, such as changes in
economic conditions, that are beyond our control. These factors could affect
actual results. As a result, there will be differences between such
estimates and the actual results, which could be material. These estimates
are necessarily speculative in nature and no assurance can be given that
these estimates will be realized. These estimates assume the transaction
will close on 12/31/95.
ESTIMATED EXCESS CAPITAL UTILIZATION (1)
1996 1997 1998
($ MILLIONS)
Pre-Tax................................................................................................. $ 25 $ 90 $132
After-Tax............................................................................................... $ 15 $ 55 $ 80
EPS..................................................................................................... $.05 $.19 $.28
(1) Like all estimates of this type, there are many factors, such as changes in
economic conditions, that are beyond our control. These factors could affect
actual results. As a result, there will be differences between such
estimates and the actual results, which could be material. These estimates
are necessarily speculative in nature and no assurance can be given that
these estimates will be realized.