SUMMARY OF SELECTED FINANCIAL INFORMATION
BOATMEN'S BANCSHARES, INC.
Quarter ended December 31 Year ended December 31
--------------------------------- ----------------------------------------
(in millions except per share data) 1996 1995 % change 1996 1995 % change
- ----------------------------------- ------- -------- --------- ----------- -------------- ----------
EARNINGS
Net interest income $ 400.3 $ 383.9 4.3 $ 1,584.6 $ 1,492.0 6.2
Provision for loan losses 19.7 26.5 (25.6) 84.5 59.8 41.4
Noninterest income 203.5 208.8 (2.5) 840.7 759.6(1) 10.7
Noninterest expense 367.9(2) 368.8 (0.2) 1,522.4(3) 1,450.8(3) 4.9
Net income 140.2 128.3 9.3 522.8 480.0 8.9
Net income before nonoperating items 146.1 128.3 13.9 585.2 513.4 14.0
COMMON SHARE DATA
Net income $ 0.89 $ 0.81 9.9 $ 3.29 $ 3.02 8.9
Net income before nonoperating items 0.93 0.81 14.8 3.69 3.23 14.2
Dividends declared 0.42 0.37 13.5 1.58 1.42 11.3
Book value (period end) 23.11 22.21 4.0
Tangible book value (period end) 20.41 19.45 4.9
Shares outstanding (period end) 155.3 157.6 (1.4)
Average shares outstanding 156.7 156.7 0.0
SELECTED FINANCIAL RATIOS
Before nonoperating items:
Return on assets 1.45 1.27 1.45 1.27
Return on total equity 16.11 14.49 16.13 15.08
Return on common equity 16.34 14.69 16.38 15.32
Efficiency ratio 58.48 61.18 58.01 61.54
After nonoperating items:
Return on assets 1.39 1.27 1.29 1.19
Return on total equity 15.46 14.49 14.41 14.10
Return on common equity 15.68 14.69 14.61 14.31
Net interest margin 4.47 4.31 4.45 4.23
Capital ratios:
Equity to assets 8.91 8.75
Risk-based capital:
Tier 1 capital 11.33 11.29
Total capital 13.85 13.97
Tier 1 leverage ratio 8.23 7.95
FINANCIAL POSITION AT PERIOD END
Total assets $ 41,200.4 $ 41,123.5 0.2
Loans 24,604.7 24,050.9 2.3
Reserve for loan losses 458.1 452.6 1.2
Deposits 31,954.0 31,978.1 (0.1)
Long-term debt 609.1 615.1 (1.0)
Equity 3,671.6 3,599.8 2.0
(1) Includes securities restructuring charge of $22.0 million.
(2) Includes merger expenses of $9.2 million.
(3) Includes merger expenses of $69.6 million in 1996 and $26.0 million in 1995, and SAIF assessment of $23.6 million in 1996.
CONSOLIDATED STATEMENT OF INCOME
BOATMEN'S BANCSHARES, INC.
Quarter ended December 31 Year ended December 31
----------------------------------- ------------------------------
(in thousands) 1996 1995 1996 1995
- -------------- ---------------- ----------------- ---------------- ------------
Interest income
Interest and fees on loans $ 527,321 $ 538,382 $ 2,109,806 $ 2,107,749
Interest on short-term investments 1,261 1,540 5,692 4,787
Interest on Federal funds sold and securities
purchased under resale agreements 3,181 11,645 24,316 40,028
Interest on held to maturity securities:
Taxable 72,064 357,753
Tax-exempt 15,013 14,325 63,471 56,108
------------ ------------ ------------ ------------
Total interest on held to maturity securities 15,013 86,389 63,471 413,861
Interest on available for sale securities 173,774 87,712 673,800 304,816
Interest on trading securities 880 706 3,628 2,049
------------ ------------ ------------ ------------
Total interest income 721,430 726,374 2,880,713 2,873,290
------------ ------------ ------------ ------------
Interest expense
Interest on deposits 243,021 265,050 994,142 1,025,459
Interest on Federal funds purchased and
other short-term borrowings 65,057 63,921 249,173 304,509
Interest on capital lease obligations 923 971 3,754 3,896
Interest on long-term debt 12,108 12,498 49,015 47,454
------------ ------------ ------------ ------------
Total interest expense 321,109 342,440 1,296,084 1,381,318
------------ ------------ ------------ ------------
Net interest income 400,321 383,934 1,584,629 1,491,972
Provision for loan losses 19,675 26,451 84,517 59,756
------------ ------------ ------------ ------------
Net interest income after provision for loan losses 380,646 357,483 1,500,112 1,432,216
------------ ------------ ------------ ------------
Noninterest income
Trust fees 55,361 52,226 214,929 200,242
Service charges 62,695 59,760 249,931 231,648
Mortgage banking revenues 19,592 20,421 86,758 80,702
Credit card 12,343 16,184 50,044 61,483
Investment banking revenues 12,615 10,832 48,982 42,158
Securities gains (losses), net 70 11,034 1,994 (7,040)
Other 40,821 38,331 188,071 150,437
------------ ------------ ------------ ------------
Total noninterest income 203,497 208,788 840,709 759,630
------------ ------------ ------------ ------------
Noninterest expense
Staff 193,940 186,596 767,073 726,472
Net occupancy 24,982 24,368 101,943 98,777
Equipment 30,776 31,123 121,914 116,704
FDIC insurance (1) 809 4,945 32,613 39,288
Intangible amortization 9,870 11,268 40,147 43,755
Advertising 11,959 11,705 45,124 42,866
Merger expense 9,154 69,617 25,978
Other 86,383 98,776 344,007 356,985
------------ ------------ ------------ ------------
Total noninterest expense 367,873 368,781 1,522,438 1,450,825
------------ ------------ ------------ ------------
Income before income tax expense 216,270 197,490 818,383 741,021
Income tax expense 76,023 69,229 295,615 261,010
------------ ------------ ------------ ------------
Net income $ 140,247 $ 128,261 $ 522,768 $ 480,011
============ ============ ============ ============
Net income available to common
shareholders $ 138,673 $ 126,407 $ 515,961 $ 472,868
============ ============ ============ ============
Net income per common share $ 0.89 $ 0.81 $ 3.29 $ 3.02
============ ============ ============ ============
Dividends declared per share $ 0.42 $ 0.37 $ 1.58 $ 1.42
============ ============ ============ ============
Average shares (YTD) 156,673,502 156,663,791
============ ============
Returns:
Return on assets 1.39 1.27 1.29 1.19
Return on total equity 15.46 14.49 14.41 14.10
Return on common equity 15.68 14.69 14.61 14.31
Preferred dividends declared $ 1,574 $ 1,854 $ 6,807 $ 7,143
Fully taxable equivalent (FTE) adjustment $ 9,613 $ 10,031 $ 38,468 $ 41,794
(1) 1996 includes a nonrecurring SAIF assessment totaling $23.6 million recorded in the third quarter.
CONSOLIDATED BALANCE SHEET
BOATMEN'S BANCSHARES, INC.
(in thousands) December 31 September 30
- -------------- ------------------------------------- ---------------
ASSETS 1996 1995 1996
- ------- ---------------- ---------------- ---------------
Cash and due from banks $ 2,733,213 $ 2,611,765 $ 2,232,618
Short-term investments 72,091 83,166 59,483
Securities:
Held to maturity 1,003,415 923,130 1,028,881
Available for sale 10,518,740 10,347,172 10,944,317
Trading 28,364 58,361 54,946
Federal funds sold and securities purchased
under resale agreements 446,276 1,225,671 182,944
Loans, net of unearned income 24,604,681 24,050,903 24,314,765
Less reserve for loan losses 458,090 452,560 472,161
------------- ------------- -------------
Loans, net 24,146,591 23,598,343 23,842,604
------------- ------------- -------------
Property and equipment 775,587 800,502 776,366
Other assets 1,476,160 1,475,379 1,571,794
------------- ------------- -------------
Total assets $ 41,200,437 $ 41,123,489 $ 40,693,953
============= ============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Demand deposits $ 7,354,523 $ 6,894,649 $ 6,914,124
Retail savings deposits and interest-bearing
transaction accounts 13,450,215 13,510,720 13,006,473
Time deposits 11,149,258 11,572,768 10,641,042
------------- ------------- -------------
Total deposits 31,953,996 31,978,137 30,561,639
------------- ------------- -------------
Federal funds purchased and securities sold
under repurchase agreements 3,021,109 2,902,973 3,277,966
Short-term borrowings 1,289,404 1,474,991 1,944,904
Capital lease obligations 36,607 39,076 38,039
Long-term debt 609,070 615,129 606,148
Other liabilities 617,682 512,436 683,526
------------- ------------- -------------
Total liabilities 37,527,868 37,522,742 37,112,222
------------- ------------- -------------
Redeemable preferred stock 934 961 949
------------- ------------- -------------
Stockholders' Equity:
Preferred stock 82,147 99,324 94,671
Common stock,($1 par value; 250,000,000
shares authorized) 158,400 158,068 158,400
Surplus 1,199,692 1,212,838 1,209,335
Retained earnings 2,405,658 2,137,176 2,332,005
Treasury stock, at cost (168,131) (18,096) (151,597)
Unrealized net depreciation,
available for sale securities (6,131) 10,476 (62,032)
------------- ------------- -------------
Total stockholders' equity 3,671,635 3,599,786 3,580,782
------------- ------------- -------------
Total liabilities and stockholders' equity $ 41,200,437 $ 41,123,489 $ 40,693,953
============= ============= =============
Book value per share $ 23.11 $ 22.21 $ 22.45
============= ============= =============
Tangible book value per share $ 20.41 $ 19.45 $ 19.75
============= ============= =============
Month end shares outstanding 155,324,746 157,591,239 155,256,583
============= ============= =============
Month end treasury shares 3,075,610 476,519 3,143,773
============= ============= =============
CREDIT QUALITY STATISTICS
BOATMEN'S BANCSHARES, INC.
Quarter ended December 31 Year ended December 31
----------------------------------- -----------------------------------
RESERVE FOR LOAN LOSSES 1996 1995 1996 1995
- ----------------------- ----------------- ---------------- ----------------- ----------------
(in thousands)
Balance, beginning of period $ 472,161 $ 461,352 $ 452,560 $ 449,485
Charge-offs (48,551) (51,436) (138,121) (118,639)
Recoveries 14,805 13,690 57,640 54,152
--------- --------- --------- ---------
Net charge-offs (33,746) (37,746) (80,481) (64,487)
--------- --------- --------- ---------
Provision for loan losses 19,675 26,451 84,517 59,756
Loan reserve from acquisitions 2,503 1,494 7,806
--------- --------- --------- ---------
Balance, end of period $ 458,090 $ 452,560 $ 458,090 $ 452,560
========= ========= ========= =========
Reserve at December 31:
Loan reserve as % of net loans 1.86 1.88 1.86 1.88
Loan reserve as multiple of net charge-offs 3.39 x 3.00 x 5.69 x 7.02 x
Net charge-offs during the period:
Net charge-offs as % of net loans 0.55 0.63 0.33 0.27
Net charge-offs as % of net loans (average) 0.56 0.62 0.33 0.27
Net charge-offs as % of loan reserve 29.47 33.36 17.57 14.25
Note: Ratios are annualized when appropriate.
December 31 September 30
----------------------------------- -----------------
NONPERFORMING ASSETS 1996 1995 1996
- -------------------- ----------------- ---------------- ------------------
(in thousands)
Nonaccrual $156,226 $165,440 $164,029
Restructured 2,355 7,996 2,370
Past due 90 days or more 37,224 37,349 40,858
-------- -------- --------
Total nonperforming loans 195,805 210,785 207,257
-------- -------- --------
Foreclosed property 28,936 35,149 33,178
-------- -------- --------
Total nonperforming assets $224,741 $245,934 $240,435
======== ======== ========
Nonperforming loans as % of total loans 0.79 0.87 0.85
Nonperforming assets as % of total loans
and foreclosed property 0.91 1.02 0.98
Nonperforming assets as % of total assets 0.55 0.60 0.59
Loan reserve as % of nonperforming loans 233.95 214.70 227.81
Quarter ended December 31 Year ended December 31
----------------------------------- ------------------------------------
1996 1995 1996 1995
----------------- ---------------- ----------------- -----------------
USED IN CALCULATIONS:
Net loans, period end 24,604,681 24,050,903 24,604,681 24,050,903
Unearned Income 78,069 87,000 78,069 87,000
Total Loans, period end 24,682,750 24,137,903 24,682,750 24,137,903
Net loans, average 24,289,969 24,184,430 24,217,889 23,842,269
Total assets 41,200,437 41,123,489 41,200,437 41,123,489
RISK-BASED CAPITAL
BOATMEN'S BANCSHARES, INC.
December 31 September 30
----------------------------------- -----------------
(in millions) 1996 1995 1996
- ------------- ---------------- ----------------- -----------------
Tier I Capital:
Stockholders' equity $ 3,671.6 $ 3,599.8 $ 3,580.8
Unrealized net (appreciation) depreciation,
available for sale securities 6.2 (10.5) 62.0
------------ ---------- ----------
Stockholders' equity, net 3,677.8 3,589.3 3,642.8
Minority interest 0.7 0.7 0.7
Intangible assets:
Goodwill (261.4) (278.0) (267.1)
Core deposit premium (52.7) (69.5) (56.5)
------------ ---------- ----------
Total Tier I 3,364.4 3,242.5 3,319.9
------------ ---------- ----------
Tier II Capital:
Allowable reserve for loan losses 372.2 360.1 370.2
Qualifying long-term debt 375.0 410.0 375.0
------------ ---------- ----------
Total Tier II 747.2 770.1 745.2
------------ ---------- ----------
Total Capital $ 4,111.6 $ 4,012.6 $ 4,065.1
============ ========== ==========
Risk-Adjusted Assets $ 29,692.5 $ 28,721.2 $ 29,512.1
============ ========== ==========
Risk-Based Capital Ratios
Tier I 11.33 11.29 1.25
Total 13.85 13.97 13.77
Tier I leverage ratio 8.23 7.95 8.21
CONSOLIDATED AVERAGE BALANCE SHEET
AND NET INTEREST MARGIN
BOATMEN'S BANCSHARES, INC.
Quarter ended December 31 Year ended December 31
-------------------------------------------------- --------------------------------------
1996 1995 1996 1995
--------------------------- --------------------- ------------------ ------------------
Average balances (in millions) Balance Rate Balance Rate Balance Rate Balance Rate
- ------------------------------ --------------------------- --------------------- ------------------ ------------------
Assets:
Loans, net of unearned income $ 24,290.0 8.66 $ 24,184.4 8.86 $ 24,217.9 8.74 $ 23,842.3 8.87
Short-term investments 78.4 6.39 92.4 6.61 87.8 6.48 79.0 6.06
Federal funds sold and
securities purchased under
resale agreements 235.3 5.38 796.9 5.80 449.3 5.41 675.4 5.93
Held to maturity securities:
Taxable -- -- 4,584.8 6.24 -- -- 5,825.5 6.14
Tax-exempt 1,024.2 8.79 891.4 9.52 988.3 9.45 864.2 9.73
Total held to maturity securities 1,024.2 8.79 5,476.2 6.77 988.3 9.45 6,689.7 6.60
Available for sale securities 10,770.3 6.43 5,696.6 6.19 10,688.0 6.32 4,946.3 6.30
Trading securities 53.7 7.02 49.2 6.01 58.7 6.68 33.4 6.48
Total earning assets 36,451.9 7.98 36,295.7 8.05 36,490.0 8.00 36,266.1 8.04
Less reserve for loan losses (473.9) (463.9) (467.9) (459.9)
Cash and due from banks 2,076.1 2,142.2 2,077.5 2,220.4
All other assets 2,296.8 2,324.3 2,285.0 2,262.8
Total assets $ 40,350.9 $ 40,298.3 $ 40,384.6 $ 40,289.4
Liabilities and Stockholders' Equity:
Retail savings deposits and interest-
bearing transaction accounts $ 13,211.9 3.09 $ 12,995.1 3.16 $ 13,220.2 3.06 $ 12,600.6 3.13
Time deposits 10,552.8 5.30 11,574.1 5.54 11,004.4 5.36 11,734.2 5.37
Total interest-bearing deposits 23,764.7 4.07 24,569.2 4.28 24,224.6 4.10 24,334.8 4.21
Federal funds purchased and
other short-term borrowings 4,945.7 5.23 4,449.4 5.70 4,708.6 5.29 5,226.9 5.83
Capital lease obligations 37.1 9.89 39.2 9.82 38.2 9.82 39.6 9.82
Long-term debt 608.8 7.91 599.4 8.27 614.5 7.98 555.8 8.54
Total interest-bearing liabilities 29,356.3 4.35 29,657.2 4.58 29,585.9 4.38 30,157.1 4.58
Demand deposits 6,683.7 6,544.7 6,542.8 6,247.6
All other liabilities 681.3 555.0 625.9 479.6
Total liabilities 36,721.3 36,756.9 36,754.6 36,884.3
Redeemable preferred stock 0.9 1.0 0.9 1.1
Total stockholders' equity 3,628.7 3,540.4 3,629.1 3,404.0
Total liabilities and
stockholders' equity $ 40,350.9 $ 40,298.3 $ 40,384.6 $ 40,289.4
Interest rate spread 3.63 3.47 3.62 3.46
Effect of noninterest-bearing funds 0.84 0.84 0.83 0.77
Net interest margin 4.47 4.31 4.45 4.23