EXHIBIT (99)(B)
PRO FORMA FINANCIAL INFORMATION
PRO FORMA COMBINED CONDENSED BALANCE SHEET
(THE CORPORATION, THE PURCHASE ACQUISITIONS AND FIRST FIDELITY)
JUNE 30, 1995
(UNAUDITED)
The following unaudited pro forma combined condensed balance sheet combines
the consolidated historical balance sheets of the Corporation, the companies
involved in the Purchase Acquisitions (as hereinafter defined) and First
Fidelity, assuming the companies had been combined as of June 30, 1995, on a
purchase accounting basis with respect to the Purchase Acquisitions (pending at
June 30, 1995, or announced on or before August 14, 1995) and on a pooling of
interests accounting basis with respect to First Fidelity.
THE PURCHASE PRO FORMA PRO FORMA FIRST PRO FORMA PRO FORMA
(IN THOUSANDS) CORPORATION ACQUISITIONS ADJUSTMENTS COMBINED FIDELITY ADJUSTMENTS COMBINED
ASSETS
Cash and due from banks............ $ 3,191,431 84,413 (595,981) 2,679,863 1,750,833 -- 4,430,696
Interest-bearing balances.......... 446,712 67,273 -- 513,985 455,033 -- 969,018
Federal funds sold and securities
purchased under resale
agreements....................... 2,052,236 8,275 -- 2,060,511 703,375 -- 2,763,886
Total cash and cash
equivalents...................... 5,690,379 159,961 (595,981) 5,254,359 2,909,241 -- 8,163,600
Trading account assets............. 1,559,021 -- -- 1,559,021 100,529 -- 1,659,550
Securities available for sale...... 7,353,926 381,101 -- 7,735,027 2,409,976 -- 10,145,003
Investment securities.............. 3,583,906 1,577,325 (28,790) 5,132,441 3,877,896 -- 9,010,337
Loans, net of unearned income...... 60,020,507 5,575,914 (6,473) 65,589,948 23,999,147 -- 89,589,095
Allowance for loan losses........ (969,122) (45,706) -- (1,014,828) (565,450) -- (1,580,278)
Loans, net....................... 59,051,385 5,530,208 (6,473) 64,575,120 23,433,697 -- 88,008,817
Premises and equipment............. 1,881,947 59,022 (14,645) 1,926,324 428,328 -- 2,354,652
Due from customers on
acceptances...................... 383,289 -- -- 383,289 161,355 -- 544,644
Mortgage servicing rights.......... 101,024 12,694 8,792 122,510 47,101 -- 169,611
Credit card premium................ 51,005 -- -- 51,005 -- -- 51,005
Other intangible assets............ 1,395,368 70,814 412,390 1,878,572 808,540 -- 2,687,112
Other assets....................... 2,050,362 210,032 1,155 2,261,549 1,185,118 -- 3,446,667
Total assets..................... $83,101,612 8,001,157 (223,552) 90,879,217 35,361,781 -- 126,240,998
LIABILITIES AND
STOCKHOLDERS' EQUITY
Deposits
Noninterest-bearing.............. 10,854,459 115,570 -- 10,970,029 5,195,045 -- 16,165,074
Interest-bearing................. 47,987,565 5,209,243 -- 53,196,808 23,623,878 -- 76,820,686
Total deposits................. 58,842,024 5,324,813 -- 64,166,837 28,818,923 -- 92,985,760
Short-term borrowings.............. 11,012,715 1,750,452 -- 12,763,167 2,020,966 -- 14,784,133
Bank acceptances outstanding....... 383,289 -- -- 383,289 161,355 -- 544,644
Other liabilities.................. 1,750,454 144,846 (3,632) 1,891,668 744,470 -- 2,636,138
Long-term debt..................... 5,376,283 247,829 -- 5,624,112 676,750 -- 6,300,862
Total liabilities.............. 77,364,765 7,467,940 (3,632) 84,829,073 32,422,464 -- 117,251,537
STOCKHOLDERS' EQUITY
Preferred stock.................... -- -- -- -- 219,219 -- 219,219
Common stock....................... 572,790 16,907 4,973 594,670 81,999 271,939 948,608
Paid-in capital.................... 1,260,261 390,804 (99,387) 1,551,678 1,255,143 (437,293) 2,369,528
Retained earnings.................. 3,912,179 128,674 (128,674) 3,912,179 1,556,804 -- 5,468,983
Less: Treasury stock............... -- (3,329) 3,329 -- (165,354) 165,354 --
Unrealized gain (loss) on debt and
equity securities................ (8,383) 161 (161) (8,383) (8,494) -- (16,877)
Total stockholders' equity..... 5,736,847 533,217 (219,920) 6,050,144 2,939,317 -- 8,989,461
Total liabilities and
stockholders' equity......... $83,101,612 8,001,157 (223,552) 90,879,217 35,361,781 -- 126,240,998
See accompanying notes to pro forma financial information.
PRO FORMA COMBINED CONDENSED INCOME STATEMENTS
(THE CORPORATION AND THE PURCHASE ACQUISITIONS)
(UNAUDITED)
The following unaudited pro forma combined condensed statements of income
present the combined statements of income of the Corporation and the companies
involved in the Purchase Acquisitions, assuming the companies had been combined
for each period presented on a purchase accounting basis (effective as of
January 1, 1994).
THE PURCHASE PRO FORMA PRO FORMA
(IN THOUSANDS EXCEPT PER SHARE DATA) CORPORATION ACQUISITIONS ADJUSTMENTS COMBINED
SIX MONTHS ENDED JUNE 30, 1995
Interest income...................................................... $3,000,417 377,671 (40,193) 3,337,895
Interest expense..................................................... 1,406,547 240,696 -- 1,647,243
Net interest income.................................................. 1,593,870 136,975 (40,193) 1,690,652
Provision for loan losses............................................ 76,500 4,130 -- 80,630
Net interest income after provision for loan losses.................. 1,517,370 132,845 (40,193) 1,610,022
Securities available for sale transactions........................... 4,878 (3,679) -- 1,199
Investment security transactions..................................... 1,450 -- -- 1,450
Noninterest income................................................... 628,042 29,339 -- 657,381
Noninterest expense.................................................. 1,399,441 179,316 20,111 1,598,868
Income before income taxes........................................... 752,299 (20,811) (60,304) 671,184
Income taxes......................................................... 266,254 990 (19,709) 247,535
Net income........................................................... 486,045 (21,801) (40,595) 423,649
Dividends on preferred stock......................................... 7,029 -- -- 7,029
Net income applicable to common stockholders......................... 479,016 (21,801) (40,595) 416,620
Pro forma per common share data
Net income available to common stockholders........................ $ 2.77 2.32
Average common shares (in thousands)............................... 172,745 179,310
THE PURCHASE PRO FORMA PRO FORMA
(IN THOUSANDS EXCEPT PER SHARE DATA) CORPORATION ACQUISITIONS ADJUSTMENTS COMBINED
YEAR ENDED DECEMBER 31, 1994
Interest income...................................................... $5,094,661 786,606 (80,286) 5,800,981
Interest expense..................................................... 2,060,946 453,964 -- 2,514,910
Net interest income.................................................. 3,033,715 332,642 (80,286) 3,286,071
Provision for loan losses............................................ 100,000 1,643 -- 101,643
Net interest income after provision for loan losses.................. 2,933,715 330,999 (80,286) 3,184,428
Securities available for sale transactions........................... (11,507) 2,647 -- (8,860 )
Investment security transactions..................................... 4,006 -- -- 4,006
Noninterest income................................................... 1,166,470 55,018 -- 1,221,488
Noninterest expense.................................................. 2,677,228 270,493 52,677 3,000,398
Income before income taxes........................................... 1,415,456 118,171 (132,963) 1,400,664
Income taxes......................................................... 490,076 38,119 (40,535) 487,660
Net income........................................................... 925,380 80,052 (92,428) 913,004
Dividends on preferred stock......................................... 25,353 -- -- 25,353
Net income applicable to common stockholders before redemption
premium............................................................ 900,027 80,052 (92,428) 887,651
Redemption premium on preferred stock................................ 41,355 -- -- 41,355
Net income applicable to common stockholders after redemption
premium............................................................ $ 858,672 80,052 (92,428) 846,296
Pro forma per common share data
Net income available to common stockholders before redemption
premium.......................................................... $ 5.22 5.06
Net income available to common stockholders after redemption
premium.......................................................... $ 4.98 4.82
Average common shares (in thousands)............................... 172,543 175,554
See accompanying notes to pro forma financial information.
PRO FORMA COMBINED CONDENSED STATEMENTS OF INCOME
(THE CORPORATION, THE PURCHASE ACQUISITIONS AND FIRST FIDELITY)
(UNAUDITED)
The following unaudited pro forma combined condensed statements of income
present the combined statements of income of the Corporation, the companies
involved in the Purchase Acquisitions and First Fidelity, assuming the
companies had been combined for each period presented on a purchase accounting
basis as to the Purchase Acquisitions (for the six months ended June 30, 1995,
and the year ended December 31, 1994, only) and on a pooling of interests
accounting basis as to First Fidelity.
SIX MONTHS ENDED
(DOLLARS IN THOUSANDS, JUNE 30, YEARS ENDED DECEMBER 31,
EXCEPT PER SHARE DATA) 1995 1994 1994 1993 1992 1991 1990
Interest income........................ $4,493,006 3,434,281 7,937,133 6,601,528 6,608,666 7,031,400 7,549,088
Interest expense....................... 2,112,573 1,254,749 3,246,946 2,481,952 2,941,680 4,070,885 4,806,471
Net interest income.................... 2,380,433 2,179,532 4,690,187 4,119,576 3,666,986 2,960,515 2,742,617
Provision for loan losses.............. 100,630 94,000 180,643 369,753 642,708 946,284 923,409
Net interest income after provision for
loan losses.......................... 2,279,803 2,085,532 4,509,544 3,749,823 3,024,278 2,014,231 1,819,208
Securities available for sale
transactions......................... 15,242 10,173 8,860 25,767 34,402 -- --
Investment security transactions....... 1,450 1,309 4,006 14,452 1,944 208,614 32,271
Noninterest income..................... 864,592 738,949 1,620,712 1,541,569 1,360,202 1,254,635 1,028,755
Noninterest expense.................... 2,135,961 1,816,102 4,070,027 3,536,346 3,443,524 2,777,665 2,564,124
Income before income taxes............. 1,025,126 1,019,861 2,073,095 1,795,265 977,302 699,815 316,110
Income taxes........................... 373,284 347,323 709,028 578,912 278,514 129,843 59,868
Net income............................. 651,842 672,538 1,364,067 1,216,353 698,788 569,972 256,242
Dividends on preferred stock........... 17,350 22,204 46,020 45,553 53,040 51,746 47,151
Net income applicable to common
stockholders before redemption
premium.............................. 634,492 650,334 1,318,047 1,170,800 645,748 518,226 209,091
Redemption premium on preferred
stock................................ -- -- 41,355 -- -- -- --
Net income applicable to common
stockholders after redemption
premium.............................. $ 634,492 650,334 1,276,692 1,170,800 645,748 518,226 209,091
Pro forma per common share data:
Net income applicable to common
stockholders before redemption
premium............................ $ 2.22 2.32 4.63 4.30 2.53 2.34 .97
Net income applicable to common
stockholders after redemption
premium............................ $ 2.22 2.32 4.48 4.30 2.53 2.34 .97
Average common shares
(in thousands)....................... 285,492 280,153 284,673 272,439 255,384 221,469 215,529
Corporation historical per common
share data:
Net income applicable to common
stockholders before redemption
premium.......................... $ 2.77 2.59 5.22 4.73 2.23 2.24 1.68
Net income applicable to common
stockholders after redemption
premium.......................... $ 2.77 2.59 4.98 4.73 2.23 2.24 1.68
Average common shares
(in thousands)....................... 172,745 169,689 172,543 167,692 158,683 140,003 135,622
See accompanying notes to pro forma financial information.
PRO FORMA COMPUTATIONS OF CONSOLIDATED
RATIOS OF EARNINGS TO FIXED CHARGES
(THE CORPORATION AND FIRST FIDELITY)
(UNAUDITED)
SIX
MONTHS
ENDED
JUNE 30, YEARS ENDED DECEMBER 31,
(DOLLARS IN THOUSANDS) 1995 1994 1993 1992 1991 1990
EXCLUDING INTEREST ON DEPOSITS
Pretax income from continuing
operations............................ $1,106,241 2,087,887 1,795,265 977,302 699,815 316,110
Fixed charges, excluding capitalized
interest.............................. 556,534 816,102 607,462 569,638 866,728 1,402,761
(A.) Earnings........................... $1,662,775 2,903,989 2,402,727 1,546,940 1,566,543 1,718,871
Interest, excluding interest on
deposits.............................. $ 523,173 746,938 537,964 501,556 803,787 1,349,953
One-third of rents...................... 33,361 69,164 69,498 68,082 62,941 52,808
Capitalized interest.................... 746 1,120 285 381 2,326 3,144
(B.) Fixed charges...................... $ 557,280 817,222 607,747 570,019 869,054 1,405,905
Consolidated ratios of earnings to fixed
charges, excluding interest on
deposits (A./B.)...................... 2.98x 3.55 3.95 2.71 1.80 1.22
INCLUDING INTEREST ON DEPOSITS
Pretax income from continuing
operations............................ $1,106,241 2,087,887 1,795,265 977,302 699,815 316,110
Fixed charges, excluding capitalized
interest.............................. 1,905,238 2,862,146 2,551,450 3,009,762 4,133,826 4,859,279
(C.) Earnings........................... $3,011,479 4,950,033 4,346,715 3,987,064 4,833,641 5,175,389
Interest, including interest on
deposits.............................. $1,871,877 2,792,982 2,481,952 2,941,680 4,070,885 4,806,471
One-third of rents...................... 33,361 69,164 69,498 68,082 62,941 52,808
Capitalized interest.................... 746 1,120 285 381 2,326 3,144
(D.) Fixed charges...................... $1,905,984 2,863,266 2,551,735 3,010,143 4,136,152 4,862,423
Consolidated ratios of earnings to fixed
charges, including interest on
deposits (C./D.)...................... 1.58x 1.73 1.70 1.32 1.17 1.06
See accompanying notes to pro forma financial information.
PRO FORMA COMPUTATIONS OF CONSOLIDATED
RATIOS OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(THE CORPORATION AND FIRST FIDELITY)
(UNAUDITED)
SIX
MONTHS
ENDED
JUNE 30, YEARS ENDED DECEMBER 31,
(DOLLARS IN THOUSANDS) 1995 1994 1993 1992 1991 1990
EXCLUDING INTEREST ON DEPOSITS
Pretax income from continuing
operations............................ $1,106,241 2,087,887 1,795,265 977,302 699,815 316,110
Fixed charges, excluding preferred stock
dividends and capitalized interest.... 566,072 861,573 628,840 591,458 878,337 1,422,265
(A.) Earnings........................... $1,672,313 2,949,460 2,424,105 1,568,760 1,578,152 1,738,375
Interest, excluding interest on
deposits.............................. $ 523,173 746,938 537,964 501,556 803,787 1,349,953
One-third of rents...................... 33,361 69,164 69,498 68,082 62,941 52,808
Preferred stock dividends*.............. 26,888 132,846 66,931 74,860 63,354 66,655
Capitalized interest.................... 746 1,120 285 381 2,326 3,144
(B.) Fixed charges...................... $ 584,168 950,068 674,678 644,879 932,408 1,472,560
Consolidated ratios of earnings to fixed
charges, excluding interest on
deposits (A./B.)...................... 2.86x 3.10 3.59 2.43 1.69 1.18
INCLUDING INTEREST ON DEPOSITS
Pretax income from continuing
operations............................ $1,106,241 2,087,887 1,795,265 977,302 699,815 316,110
Fixed charges, excluding preferred stock
dividends and capitalized interest.... 1,914,776 2,907,617 2,572,828 3,031,582 4,145,434 4,878,783
(C.) Earnings........................... $3,021,017 4,995,504 4,368,093 4,008,884 4,845,249 5,194,893
Interest, including interest on
deposits.............................. $1,871,877 2,792,982 2,481,952 2,941,680 4,070,885 4,806,471
One-third of rents...................... 33,361 69,164 69,498 68,082 62,941 52,808
Preferred stock dividends*.............. 26,888 132,846 66,931 74,860 63,354 66,655
Capitalized interest.................... 746 1,120 285 381 2,326 3,144
(D.) Fixed charges...................... $1,932,872 2,996,112 2,618,666 3,085,003 4,199,506 4,929,078
Consolidated ratios of earnings to fixed
charges, including interest on
deposits (C./D.)...................... 1.56x 1.67 1.67 1.30 1.15 1.05
* Includes redemption premium of $41,355,000 in 1994.
See accompanying notes to pro forma financial information.
NOTES TO PRO FORMA FINANCIAL INFORMATION
(1) The pro forma information presented is not necessarily indicative of the
results of operations or the combined financial position that would have
resulted had the Purchase Acquisitions indicated in Note (3) below and the
First Fidelity acquisition been consummated at the beginning of the
periods indicated, nor is it necessarily indicative of the results of
operations in future periods or the future financial position of the
combined entities. Consummation of the First Fidelity acquisition or any
of the Purchase Acquisitions is not contingent upon consummation of any
other of such acquisitions. Consummation of one or all of the Purchase
Acquisitions prior to consummation of the First Fidelity acquisition would
not materially impact the results of operations of the Corporation.
(2) It is assumed that the First Fidelity acquisition will be accounted for on a
pooling of interests accounting basis, and accordingly, the related pro
forma adjustments herein reflect, where applicable, an exchange ratio of (i)
1.35 shares of the Corporation's common stock for each of the 81,998,930
shares of First Fidelity common stock (less 3,345,884 treasury shares) which
were outstanding at June 30, 1995; and (ii) one share of one of three
corresponding new series of the Corporation's class A preferred stock for
each share of the related three series of First Fidelity preferred stock
outstanding at June 30, 1995, one series of which includes 4,368,848 shares
of convertible preferred stock, which are currently convertible into
3,408,138 shares of First Fidelity common stock. The new series of the
Corporation's class A preferred stock will have substantially identical
terms as the series being exchanged therefor. The 1.35 exchange ratio is
subject to possible adjustment under certain circumstances.
As a result, information was adjusted for the First Fidelity acquisition by
the (i) addition of 106,181,612 shares of the Corporation's common stock
amounting to $353,938,000; (ii) elimination of 81,998,930 shares of First
Fidelity common stock amounting to $81,999,000; (iii) cancellation of
3,345,884 treasury shares of First Fidelity at a cost of $165,354,000; and
(iv) recordation of the remaining net amount of $437,293,000 as a reduction
in paid-in capital at June 30, 1995.
The pro forma financial information presented herein does not give effect to
the possible purchase by the Corporation and/or First Fidelity of up to 5.5
million shares of First Fidelity common stock or 7.4 million shares of the
Corporation's common stock, or some combination of the two (the "First
Fidelity Acquisition Shares"), prior to consummation of the First Fidelity
acquisition. From July 3, 1995 through August 7, 1995, the Corporation
purchased 2.7 million shares of First Fidelity common stock at a cost of
$170 million, and 250,000 shares of FFB convertible preferred stock at
a cost of $12 million.
As of June 30, 1995, the Corporation and First Fidelity had 14,441,144 and
6,788,278 shares of common stock reserved for issuance, respectively,
(excluding, as to the Corporation, shares reserved for issuance in
connection with the First Fidelity acquisition, the Purchase Acquisitions,
or upon exercise of the rights attached to shares of the Corporation's
common stock).
For the six months ended June 30, 1995, First Fidelity had net income
applicable to common stockholders of $217,872,000.
(3) During the period from January 1, 1994 through August 14, 1995, the
Corporation completed or had pending at August 14, 1995, the following
purchase accounting acquisitions (the "Purchase Acquisitions"): (i) the
acquisition of BancFlorida Financial Corporation (completed August 1994)
with assets of $1.6 billion for 3.6 million shares of the Corporation's
common stock valued at $161 million, (ii) the acquisitions of First
Florida Savings Bank, FSB (completed in April 1995), Ameribanc Investors
Group (completed in April 1995), Coral Gables Fedcorp, Inc. (completed
May 1995), and Home Federal Savings Bank of Rome, Georgia (completed
August 1995), at an aggregate cost of $623 million in cash, (iii) the
acquisitions of American Savings Bank of Florida, FSB (completed July
1995) and United Financial Corporation of South Carolina, Inc., Columbia
First Bank, FSB, RS Financial Corp. and Brentwood National Bank (each of
which is pending at August 14, 1995) for an estimated 16.5 million shares
of the Corporation's common stock valued at an estimated $785 million,
(iv) the December 1994 purchase of a DE MINIMUS amount of loans, and the
purchase of deposits from Chase Manhattan Bank of Florida, N.A. ("Chase")
and Great Western Federal Savings Bank ("Great Western"), which in the
aggregate amounted to $1.8 billion, at an aggregate cost of approximately
$137 million, and (v) the purchase of deposits of Jacksonville Federal
Savings Association, Citizens Federal Savings Association, Cobb Federal
Savings Association and Hollywood Federal Savings Association from the
Resolution Trust Corporation ("RTC") in the aggregate amount of $640
million, at an aggregate cost of $68 million. Purchases of deposits from
Chase, Great Western and the RTC do not constitute a sufficient continuity
of operations, and moreover, additional financial data is not available to
develop meaningful and reliable pro forma income statement information with
respect to such purchases.
Goodwill and deposit base premium of approximately $701 million and $378
million, respectively, are currently expected to result from the Purchase
Acquisitions.
In connection with certain of the foregoing purchase accounting acquisitions
in which the consideration involved or will involve the issuance of the
Corporation's common stock, the pro forma financial information presented
herein includes actual and assumed repurchases of the Corporation's common
stock that in the aggregate amount to 20.5 million shares at a cost of
$932 million.
In April 1995, the Corporation's Board of Directors authorized the purchase
of up to 15 million shares of the Corporation's common stock, which is in
addition to the possible purchase of the First Fidelity Acquisition
Shares. As of August 7, 1995, the Corporation had authority to purchase up
to 6.3 million shares of its common stock, in addition to the First
Fidelity Acquisition Shares.
(4) The pro forma adjustment amounts related to the pro forma combined condensed
statements of income reflect a 5.84 percent and 4.08 percent cost of funds
for the six months ended June 30, 1995 and the year ended December 31, 1994,
respectively, a six-to-ten year straight-line life related to investment
securities, a nine-year straight-line life related to loans, a 10-year
straight-line life related to premises and equipment and mortgage servicing
rights, a 10-year sum-of-the-years digits method related to deposit base
premium, and a 25-year straight-line life related to goodwill.
These adjustments resulted in reductions in interest income, net interest
income and net interest income after provision for loan losses for the six
months ended June 30, 1995 and the year ended December 31, 1994 of
$40,193,000 and $80,286,000, respectively; increases in noninterest expense
of $20,111,000 and $52,677,000, respectively; reductions in income before
income taxes of $60,304,000 and $132,963,000, respectively; reductions in
income taxes of $19,709,000 and $40,535,000, respectively; and reductions in
net income applicable to common stockholders of $40,595,000 and $92,428,000,
respectively.
(5) Income per share data has been computed based on the combined historical net
income applicable to common stockholders of the Corporation, First Fidelity
and the companies involved in the Purchase Acquisitions using the historical
weighted average shares outstanding of the Corporation's common stock and
the weighted average outstanding shares, adjusted to equivalent shares of
the Corporation's common stock, as of the earliest period presented.
(6) Certain insignificant reclassifications have been included herein to conform
statement presentations. Transactions conducted in the ordinary course of
business between the companies are immaterial, and accordingly, have not
been eliminated.
(7) The unaudited pro forma financial information does not include any material
expenses or restructuring charges related to the First Fidelity acquisition
or the Purchase Acquisitions. Such after-tax restructuring charges are
currently estimated to be $140 million relating to the First Fidelity
acquisition.
(8) As indicated by the foregoing unaudited pro forma financial information and
based solely on combined financial information as of June 30, 1995, upon
consummation of the First Fidelity acquisition and the Purchase
Acquisitions, the Corporation's historical net income per common share
after redemption premium for the six months ended June 30, 1995 and year
ended December 31, 1994, would have been diluted by 20 percent and 10
percent, respectively. It should not necessarily be assumed, however, that
the foregoing data will represent actual dilution with respect to the
First Fidelity acquisition and the Purchase Acquisitions.
(9) For purposes of computing the combined ratios of earnings to fixed charges
of the Corporation and First Fidelity, earnings represent income from
continuing operations before extraordinary items and cumulative effect of a
change in accounting principle plus income taxes and fixed charges
(excluding capitalized interest). Fixed charges, excluding interest on
deposits, represent interest (other than on deposits, but including
capitalized interest), one-third (the proportion deemed representative of
the interest factor) of rents and all amortization of debt issuance costs.
Fixed charges, including interest on deposits, represent all interest
(including capitalized interest), one-third (the proportion deemed
representative of the interest factor) of rents and all amortization of debt
issuance costs. Pretax preferred stock dividends are included in fixed
charges when computing the combined ratios of earnings to fixed charges and
preferred stock dividends.