N E W S
Wednesday, January 21, 1998 Media Contact: Mary Eshet
704-383-7777
Investor Contact: Alice Lehman
704-374-4139
(First Union
logo appears here)
FIRST UNION POSTS RECORD OPERATING EARNINGS IN 1997
CHARLOTTE -- First Union Corporation reported an 11 percent increase in
operating earnings, before special charges, to $2.1 billion in 1997 compared
with $1.9 billion in 1996. Operating earnings per common share were $3.34 in
1997, compared with $3.04 per common share in 1996. Growth in earnings was due
in large part to a 30 percent increase in noninterest income, primarily from
First Union's rapidly growing Capital Markets and Capital Management areas.
The 1997 operating earnings represent a return on average common equity of 18.90
percent and a return on average assets of 1.39 percent, up from 18.50 percent
and 1.30 percent, respectively, in 1996. All financial information for 1996 and
1997 has been restated to reflect the November 28, 1997, pooling of interests
acquisition of Signet Banking Corporation.
Capital Markets noninterest income increased 58 percent compared with 1996.
Capital Management noninterest income increased 45 percent compared with 1996.
"Our strong financial performance reflects the success of our strategy to offer
customers the products and solutions they want," said Edward E. Crutchfield,
chairman and chief executive officer. "We are particularly pleased that,
excluding Signet's results and special charges, we achieved our internal
earnings per share goal of $3.50 and that we've been able to reward our
shareholders by increasing our dividend twice in 1997.
"We set out four years ago to ensure we could provide our middle market
customers everything that Wall Street had to offer. The results of our Capital
Markets Group are strong evidence that we have correctly anticipated our
customers' needs and delivered quality products and services to them. The
success of our Capital Management Group is proof that the investments we have
made to build our asset management product set are also meeting with widespread
customer approval throughout our marketplace."
Special charges consisted of merger-related, after-tax restructuring charges of
$194 million, or 31 cents per common share, in 1997 related to the acquisition
of Signet and $181 million, or 29 cents per common share, in 1996 related to the
acquisition of First Fidelity Bancorporation. Special charges in 1996 also
include an after-tax Savings Association Insurance Fund (SAIF) special
assessment of $87 million, or 14 cents per common share. After the special
charges, 1997 earnings were $1.9 billion, or $3.03 per common share, and 1996
earnings were $1.6 billion, or $2.61 per common share.
First Union Corporation MORE Contact:
Corporate Relations Division R. Jeep Bryant
One First Union Center Senior Vice President, Corporate
Communications
Charlotte, North Carolina 28288-0570 Work: 704 374-2957
http://www.firstunion.com Home: 704 442-9046
FIRST UNION POSTS RECORD EARNINGS/PAGE 2
In the fourth quarter of 1997, First Union's operating earnings were $519
million, or 82 cents per common share, compared with $493 million, or 80 cents
per common share, in the fourth quarter of 1996. After the special charges, 1997
fourth quarter earnings were $362 million, or 57 cents per common share. There
were no special charges in the fourth quarter of 1996. In addition, certain
corporate and interstate banking entities were reorganized, which resulted in a
reduction in the effective federal income tax rate. This benefit was principally
offset by a higher provision for loan losses related to the restructuring of the
unsecured consumer loan portfolio.
Period-end net loans increased 3 percent in 1997, excluding the effect of loans
securitized and loans moved into the assets held for sale category as part of
the company's strategy to maximize its return on investment through balance
sheet management.
In addition to producing strong financial results, in 1997 First Union also took
several actions to position itself for 1998 and beyond:
(bullet) In the fourth quarter, the unsecured consumer portfolio was
significantly restructured to improve credit quality and reduce credit
losses.
(bullet) The investment portfolio was repositioned in the fall of 1997 to
maximize income in the face of declining interest rates and a
flattening yield curve.
(bullet) The Future Bank, First Union's new approach to deliver products to
individual customers when, where and how they want them, was launched
in metropolitan Atlanta in May 1997 and preparations were made for
corporatewide implementation beginning in 1998.
(bullet) A comprehensive brand campaign was launched to heighten awareness in
the marketplace of First Union's leading position as a full-service
financial institution.
An agreement to merge with Philadelphia-based CoreStates Financial
Corp was announced on November 18, 1997. As of December 31, 1997, CoreStates had
assets of $48 billion. This pooling of interests acquisition is currently
expected to be completed by April 30, 1998, pending CoreStates and First Union
shareholder approval, regulatory approval and other conditions of closing.
"I'd like to thank our customers for the opportunity to serve their
full array of financial needs," said Crutchfield. "I also want to thank all
First Union employees for their commitment in making it possible for our company
to grow our products and lines of business even as we expand in a consolidating
industry. First Union's success is largely due to the ability of our employees
to remain focused on our customers."
First Union (NYSE:FTU) is a leading provider of financial services to
more than 12 million retail and corporate customers throughout the East Coast
and the nation. At December 31, 1997, First Union had assets of $157 billion.
Total stockholders' equity was $12 billion. The company operates full-service
banking offices in Connecticut, Delaware, Florida, Georgia, Maryland, New
Jersey, New York, North Carolina, Pennsylvania, South Carolina, Tennessee,
Virginia and Washington, D.C.
MORE
PAGE 3
FIRST UNION CORPORATION
EARNINGS DATA (A)
(UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED YEARS ENDED
DECEMBER 31, 4Q 97 DECEMBER 31, 12 M 97
-------------------------- --------------------------
VS VS
(DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA) 1997 1996 4Q 96 1997 1996 12 M 96
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Net income $ 362 494 (27)% $ 1,896 1,624 17 %
Dividends on preferred stock - 1 (100) - 9 (100)
- --------------------------------------------------------------------------------- ------------------------
Net income applicable to common stockholders after
merger-related restructuring charges and SAIF
special assessment 362 493 (27) 1,896 1,615 17
After-tax restructuring charges and SAIF special
assessment 157 - - 194 268 (28)
- --------------------------------------------------------------------------------- ------------------------
Net income applicable to common stockholders before
merger-related restructuring charges and SAIF
special assessment $ 519 493 5 % $ 2,090 1,883 11 %
- ---------------------------------------------------------------------------------------------------------------------------------
PER COMMON SHARE DATA (B)
Basic earnings per share
Net income after merger-related restructuring
charges and SAIF special assessment $ 0.57 0.80 (29)% $ 3.03 2.61 16 %
Net income before merger-related restructuring
charges and SAIF special assessment 0.82 0.80 2 3.34 3.04 10
Diluted earnings per share
Net income after merger-related restructuring
charges and SAIF special assessment 0.56 0.79 (29) 2.99 2.58 16
Net income before merger-related restructuring
charges and SAIF special assessment 0.81 0.79 3 3.30 3.01 10
Cash dividends 0.32 0.29 10 1.22 1.10 11
Book value 18.91 17.06 11 18.91 17.06 11
Period-end price $ 51.25 37.00 39 $ 51.25 37.00 39
Average common shares (IN THOUSANDS)
Basic 631,004 618,541 2 625,649 619,237 1
Diluted 639,031 625,155 2 633,772 625,224 1
Actual common shares (IN THOUSANDS) 636,394 640,782 (1) 636,394 640,782 (1)
Dividend payout ratios (based on operating earnings) 39.26 35.52 - % 35.86 35.06 - %
- ---------------------------------------------------------------------------------------------------------------------------------
PERFORMANCE HIGHLIGHTS
Before merger-related restructuring charges and
SAIF special assessment
Return on average assets (c) (d) 1.35 1.33 - 1.39 1.30 -
Return on average common equity (c) (e) 17.53 18.61 - 18.90 18.50 -
Overhead efficiency ratio (f) 61 57 - 57 58 -
Net charge-offs as a percentage of
Average loans, net (c) 0.53 0.79 - 0.63 0.65 -
Average loans, net, excluding Bankcard (c) 0.33 0.35 - 0.28 0.35 -
Nonperforming assets to loans, net and
foreclosed properties 0.75 0.78 - 0.75 0.78 -
Net interest margin (c) 4.27 4.21 - 4.36 4.25 -
- ---------------------------------------------------------------------------------------------------------------------------------
CASH EARNINGS (EXCLUDING OTHER
INTANGIBLE AMORTIZATION)
Before merger-related restructuring charges and
SAIF special assessment
Net income applicable to common stockholders $ 574 542 6 % $ 2,320 2,084 11 %
Earnings per common share - basic (b) $ 0.91 0.89 2 $ 3.71 3.37 10
Return on average tangible assets (c) 1.52 1.48 - 1.57 1.46 -
Return on average tangible common equity (c) (e) 25.25 26.99 - 28.14 27.17 -
Overhead efficiency ratio (f) 58 % 54 - % 54 % 55 - %
- ---------------------------------------------------------------------------------------------------------------------------------
(a) All amounts have been restated to reflect the pooling of interests
acquisition of Signet Banking Corporation on November 28, 1997.
(b) Per common share data has been restated for a two-for-one stock split
declared on June 17, 1997, which was paid on July 31, 1997, to holders of
record as of July 1, 1997. Basic earnings per share is the result of
dividing net income applicable to common stockholders by average common
shares outstanding. Diluted earnings per share is the result of dividing net
income applicable to common stockholders by the sum of average common shares
outstanding and common stock equivalents related to employee stock options.
(c) Quarterly amounts annualized.
(d) Based on net income.
(e) Based on net income applicable to common stockholders and average common
stockholders' equity excluding average net unrealized gains or losses on
debt and equity securities.
(f) The overhead efficiency ratio is equal to noninterest expense divided by
net operating revenue. Net operating revenue is equal to the sum of
tax-equivalent net interest income and noninterest income, including
investment securities transactions.
PAGE 4
FIRST UNION CORPORATION
EARNINGS DATA (A)
(UNAUDITED)
- -----------------------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED YEARS ENDED
DECEMBER 31, 4Q 97 DECEMBER 31, 12 M 97
------------------------ -------------------------
VS VS
(IN MILLIONS) 1997 1996 4Q 96 1997 1996 12 M 96
- -----------------------------------------------------------------------------------------------------------------------------------
EARNINGS SUMMARY
Net interest income (b) $ 1,437 1,391 3 % $ 5,819 5,557 5 %
Provision for loan losses 325 150 117 840 449 87
- -------------------------------------------------------------------------------- -----------------------
Net interest income after provision for loan losses (b) 1,112 1,241 (10) 4,979 5,108 (3)
Securities available for sale transactions 12 16 (25) 31 36 (14)
Investment security transactions - 1 (100) 3 4 (25)
Noninterest income 905 757 20 3,362 2,596 30
Merger-related and restructuring charges 210 - - 269 281 (4)
SAIF special assessment - - - - 135 (100)
Noninterest expense 1,450 1,238 17 5,320 4,737 12
- -------------------------------------------------------------------------------- -----------------------
Income before income taxes (b) 369 777 (53) 2,786 2,591 8
Income taxes (14) 264 (105) 814 875 (7)
Tax-equivalent adjustment 21 19 11 76 92 (17)
- -------------------------------------------------------------------------------- -----------------------
Net income 362 494 (27) 1,896 1,624 17
Dividends on preferred stock - 1 (100) - 9 (100)
- -------------------------------------------------------------------------------- -----------------------
Net income applicable to common stockholders after
merger-related restructuring charges $ 362 493 (27)% $ 1,896 1,615 17 %
- -----------------------------------------------------------------------------------------------------------------------------------
AVERAGE BALANCE SHEET DATA
Loans, net of unearned income $ 98,674 99,777 (1)% $ 100,429 97,181 3 %
Earning assets 134,362 131,431 2 133,503 130,861 2
Total assets 152,474 147,481 3 150,375 145,491 3
Noninterest-bearing deposits 20,264 18,771 8 19,189 18,273 5
Interest-bearing deposits 79,137 81,017 (2) 80,691 80,636 -
Common stockholders' equity (c) 11,666 10,206 14 11,030 9,937 11
Total stockholders' equity (c) $ 11,666 10,226 14 % $ 11,030 10,045 10 %
- -----------------------------------------------------------------------------------------------------------------------------------
(a) All amounts have been restated to reflect the pooling of interests
acquisition of Signet Banking Corporation on November 28, 1997.
(b) Tax-equivalent.
(c) Excludes average net unrealized gains or losses on debt and equity
securities.
PAGE 5
FIRST UNION CORPORATION
QUARTERLY FINANCIAL HIGHLIGHTS
(UNAUDITED)
- --------------------------------------------------------------------------------------------------------------------------------
1997 1996
--------------------------------------------------- -----------
FOURTH THIRD SECOND FIRST FOURTH
(DOLLARS IN MILLIONS, EXCEPT COMMON STOCK PRICES) QUARTER QUARTER QUARTER QUARTER QUARTER
- --------------------------------------------------------------------------------------------------------------------------------
SELECTED LINES OF BUSINESS DATA (A)
Capital Markets
Tax-equivalent net interest income $ 99 101 118 89 85
Fee and other income $ 238 188 218 158 184
- --------------------------------------------------------------------------------------------------------------------------------
Capital Management
Trust fees $ 94 93 89 86 84
Mutual fund fees 64 61 59 61 24
- --------------------------------------------------------------------------------------------------------------------------------
Total 158 154 148 147 108
Less internal management reporting adjustments (b) (9) (8) (7) (7) (7)
- --------------------------------------------------------------------------------------------------------------------------------
Total 149 146 141 140 101
Brokerage commissions 39 41 36 38 33
Insurance commissions 26 24 30 25 24
Other retail fees 12 12 12 11 10
- --------------------------------------------------------------------------------------------------------------------------------
Total Capital Management income $ 226 223 219 214 168
- --------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK PRICE (C)
High $ 52.8750 50.6875 47.875 47.750 38.50
Low 46.9375 45.8750 39.125 36.625 33.50
Period-end $ 51.2500 50.0625 46.250 40.500 37.00
- --------------------------------------------------------------------------------------------------------------------------------
(a) Certain information is prepared from internal management reports. All
amounts have been restated to reflect the pooling of interests
acquisition of Signet Banking Corporation on November 28, 1997.
(b) Internal management reporting adjustments represent the elimination of
inter-affiliate fee income, the results of which are included in the
consolidated statements of income.
(c) Common stock prices have been restated for a two-for-one stock split
declared on June 17, 1997, which was paid on July 31, 1997, to holders of
record as of July 1, 1997.
PAGE 6
FIRST UNION CORPORATION
QUARTERLY FINANCIAL HIGHLIGHTS
(UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------
1997 1996
--------------------------------------------------- -----------
FOURTH THIRD SECOND FIRST FOURTH
(DOLLARS IN MILLIONS) QUARTER QUARTER QUARTER QUARTER QUARTER
- ------------------------------------------------------------------------------------------------------------------------------
PERIOD-END BALANCE SHEET DATA (A)
Securities available for sale $ 21,415 18,924 18,817 16,839 16,805
Investment securities 2,175 2,268 2,285 2,408 2,501
Loans, net of unearned income 96,873 101,452 102,783 101,747 102,316
Earning assets 134,370 137,571 137,245 131,526 134,223
Total assets 157,274 155,175 154,795 148,442 151,847
Noninterest-bearing deposits 21,753 20,734 20,962 19,978 20,383
Interest-bearing deposits 81,136 78,669 80,027 80,320 82,319
Long-term debt 8,042 8,169 7,608 8,004 8,060
Guaranteed preferred beneficial interests 991 990 990 990 495
Common stockholders' equity 12,032 11,710 10,916 10,400 10,932
Total stockholders' equity $ 12,032 11,710 10,916 10,400 10,932
- ------------------------------------------------------------------------------------------------------------------------------
CAPITAL RATIOS
Tier 1 capital (b) 8.44 % 8.18 7.55 7.28 7.33
Total capital (b) 13.45 13.72 12.64 12.24 12.33
Leverage (b) 6.81 6.53 6.23 6.13 6.13
Stockholders' equity to assets (a)
Quarter-end 7.65 7.55 7.05 7.01 7.20
Average 7.77 % 7.38 7.03 7.27 6.93
- ------------------------------------------------------------------------------------------------------------------------------
(a) All amounts have been restated to reflect the pooling of interests
acquisition of Signet Banking Corporation on November 28, 1997.
(b) The fourth quarter of 1997 is based on estimates. Amounts prior to the
fourth quarter of 1997 have not been restated for the Signet Banking
Corporation acquisition.
PAGE 7
FIRST UNION CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (A)
(UNAUDITED)
- ----------------------------------------------------------------------------------------------------------------------------------
1997 1996
--------------------------------------------------- -----------
FOURTH THIRD SECOND FIRST FOURTH
(IN MILLIONS, EXCEPT PER SHARE DATA) QUARTER QUARTER QUARTER QUARTER QUARTER
- ----------------------------------------------------------------------------------------------------------------------------------
INTEREST INCOME
Interest and fees on loans $ 2,167 2,226 2,216 2,162 2,136
Interest and dividends on securities available for sale 329 325 337 276 282
Interest and dividends on investment securities
Taxable income 27 28 29 30 32
Nontaxable income 14 14 14 15 15
Trading account interest 100 88 71 56 80
Other interest income 109 110 104 86 103
- ----------------------------------------------------------------------------------------------------------------------------------
Total interest income 2,746 2,791 2,771 2,625 2,648
- ----------------------------------------------------------------------------------------------------------------------------------
INTEREST EXPENSE
Interest on deposits 821 818 821 804 812
Interest on short-term borrowings 377 380 364 287 337
Interest on long-term debt 132 130 126 130 127
- ----------------------------------------------------------------------------------------------------------------------------------
Total interest expense 1,330 1,328 1,311 1,221 1,276
- ----------------------------------------------------------------------------------------------------------------------------------
Net interest income 1,416 1,463 1,460 1,404 1,372
Provision for loan losses (b) 325 175 178 162 150
- ----------------------------------------------------------------------------------------------------------------------------------
Net interest income after provision for loan losses 1,091 1,288 1,282 1,242 1,222
- ----------------------------------------------------------------------------------------------------------------------------------
NONINTEREST INCOME
Trading account profits 86 24 61 33 68
Service charges on deposit accounts 222 214 208 210 191
Mortgage banking income 74 59 58 56 48
Capital management income 226 223 219 214 168
Securities available for sale transactions 12 10 5 4 16
Investment security transactions - 2 1 - 1
Fees for other banking services 27 37 41 46 43
Sundry income 270 278 222 254 239
- ----------------------------------------------------------------------------------------------------------------------------------
Total noninterest income 917 847 815 817 774
- ----------------------------------------------------------------------------------------------------------------------------------
NONINTEREST EXPENSE
Salaries 597 543 554 527 548
Other benefits 116 118 124 137 112
- ----------------------------------------------------------------------------------------------------------------------------------
Personnel expense 713 661 678 664 660
Occupancy 99 102 100 100 103
Equipment 132 137 126 129 126
Advertising 22 25 29 27 15
Telecommunications 32 30 29 30 27
Travel 35 27 26 22 21
Postage, printing and supplies 45 40 40 45 41
FDIC assessment 6 6 6 5 -
Professional fees 54 29 27 24 34
External data processing 22 25 23 24 25
Other intangibles amortization 71 69 68 69 62
Merger-related and restructuring charges 210 - 59 - -
Sundry expense 219 141 143 144 124
- ----------------------------------------------------------------------------------------------------------------------------------
Total noninterest expense 1,660 1,292 1,354 1,283 1,238
- ----------------------------------------------------------------------------------------------------------------------------------
Income before income taxes (benefits) 348 843 743 776 758
Income taxes (benefits) (b) (14) 296 260 272 264
- ----------------------------------------------------------------------------------------------------------------------------------
Net income 362 547 483 504 494
Dividends on preferred stock - - - - 1
- ----------------------------------------------------------------------------------------------------------------------------------
Net income applicable to common stockholders $ 362 547 483 504 493
- ----------------------------------------------------------------------------------------------------------------------------------
PER COMMON SHARE DATA (C)
Net income - Basic $ 0.57 0.88 0.78 0.80 0.80
Net income - Diluted 0.56 0.87 0.77 0.79 0.79
Cash dividends $ 0.32 0.32 0.29 0.29 0.29
AVERAGE COMMON SHARES (IN THOUSANDS) (C)
Basic 631,004 622,650 621,541 627,402 618,541
Diluted 639,031 630,552 629,654 635,852 625,155
- ----------------------------------------------------------------------------------------------------------------------------------
(a) All amounts have been restated to reflect the pooling of interests
acquisition of Signet Banking Corporation on November 28, 1997.
(b) Certain corporate and interstate banking entities were reorganized, which
resulted in a reduction in the effective federal income tax rate. This
benefit was principally offset by a higher provision for loan losses related
to the restructuring of the unsecured consumer loan portfolio. It is
currently anticipated that the 1998 effective federal income tax rate will
return to 35 percent.
(c) See (b) on page 3 for information related to common shares and for
definitions related to basic and diluted earnings per share.
PAGE 8
FIRST UNION CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (a)
(Unaudited)
- -------------------------------------------------------------------------------------------------------------------------
Years Ended
December 31,
------------------------
(In millions, except per share data) 1997 1996
- -------------------------------------------------------------------------------------------------------------------------
INTEREST INCOME
Interest and fees on loans $ 8,771 8,310
Interest and dividends on securities available for sale 1,267 1,282
Interest and dividends on investment securities
Taxable income 114 130
Nontaxable income 57 70
Trading account interest 315 302
Other interest income 409 366
- -------------------------------------------------------------------------------------------------------------------------
Total interest income 10,933 10,460
- -------------------------------------------------------------------------------------------------------------------------
INTEREST EXPENSE
Interest on deposits 3,264 3,190
Interest on short-term borrowings 1,408 1,312
Interest on long-term debt 518 493
- -------------------------------------------------------------------------------------------------------------------------
Total interest expense 5,190 4,995
- -------------------------------------------------------------------------------------------------------------------------
Net interest income 5,743 5,465
Provision for loan losses (b) 840 449
- -------------------------------------------------------------------------------------------------------------------------
Net interest income after provision for loan losses 4,903 5,016
- -------------------------------------------------------------------------------------------------------------------------
NONINTEREST INCOME
Trading account profits 204 131
Service charges on deposit accounts 854 734
Mortgage banking income 247 194
Capital management income 882 607
Securities available for sale transactions 31 36
Investment security transactions 3 4
Fees for other banking services 151 172
Sundry income 1,024 758
- -------------------------------------------------------------------------------------------------------------------------
Total noninterest income 3,396 2,636
- -------------------------------------------------------------------------------------------------------------------------
NONINTEREST EXPENSE
Salaries 2,221 1,994
Other benefits 495 457
- -------------------------------------------------------------------------------------------------------------------------
Personnel expense 2,716 2,451
Occupancy 401 389
Equipment 524 448
Advertising 103 61
Telecommunications 121 113
Travel 110 99
Postage, printing and supplies 170 178
FDIC assessment 23 41
Professional fees 134 102
External data processing 94 146
Other intangibles amortization 277 250
Merger-related and restructuring charges 269 281
SAIF special assessment - 135
Sundry expense 647 459
- -------------------------------------------------------------------------------------------------------------------------
Total noninterest expense 5,589 5,153
- -------------------------------------------------------------------------------------------------------------------------
Income before income taxes 2,710 2,499
Income taxes (b) 814 875
- -------------------------------------------------------------------------------------------------------------------------
Net income 1,896 1,624
Dividends on preferred stock - 9
- -------------------------------------------------------------------------------------------------------------------------
Net income applicable to common stockholders $ 1,896 1,615
- -------------------------------------------------------------------------------------------------------------------------
PER COMMON SHARE DATA (c)
Net income - Basic $ 3.03 2.61
Net income - Diluted 2.99 2.58
Cash dividends $ 1.22 1.10
AVERAGE COMMON SHARES (In thousands) (c)
Basic 625,649 619,237
Diluted 633,772 625,224
- -------------------------------------------------------------------------------------------------------------------------
(a) All amounts have been restated to reflect the pooling of interests
acquisition of Signet Banking Corporation on November 28, 1997.
(b) Certain corporate and interstate banking entities were reorganized, which
resulted in a reduction in the effective federal income tax rate. This
benefit was principally offset by a higher provision for loan losses related
to the restructuring of the unsecured consumer loan portfolio. It is
currently anticipated that the 1998 effective federal income tax rate will
return to 35 percent.
(c) See (b) on page 3 for information related to common shares and for
definitions related to basic and diluted earnings per share.
PAGE 9
FIRST UNION CORPORATION
LOANS (A)
(UNAUDITED)
- --------------------------------------------------------------------------------------------------------------------------------
1997 1996
--------------------------------------------------- -----------
FOURTH THIRD SECOND FIRST FOURTH
(IN MILLIONS) QUARTER QUARTER QUARTER QUARTER QUARTER
- --------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL
Commercial, financial and agricultural $ 28,111 27,244 27,414 26,683 25,997
Real estate - construction and other 2,386 2,530 2,699 2,837 2,919
Real estate - mortgage 8,576 8,916 9,179 9,460 9,758
Lease financing 8,056 7,871 7,775 6,587 5,951
Foreign 1,431 1,308 1,395 1,091 1,087
- --------------------------------------------------------------------------------------------------------------------------------
Total commercial 48,560 47,869 48,462 46,658 45,712
- --------------------------------------------------------------------------------------------------------------------------------
RETAIL
Real estate - mortgage 25,382 26,086 26,636 27,356 29,108
Installment loans - Bankcard (b) 2,708 5,137 5,494 5,453 5,620
Installment loans - other 19,297 21,660 21,671 21,309 20,827
Vehicle leasing 4,312 4,005 3,858 3,704 3,480
- --------------------------------------------------------------------------------------------------------------------------------
Total retail 51,699 56,888 57,659 57,822 59,035
- --------------------------------------------------------------------------------------------------------------------------------
Total loans 100,259 104,757 106,121 104,480 104,747
- --------------------------------------------------------------------------------------------------------------------------------
UNEARNED INCOME
Loans 627 574 563 548 521
Lease financing 2,759 2,731 2,775 2,185 1,910
- --------------------------------------------------------------------------------------------------------------------------------
Total unearned income 3,386 3,305 3,338 2,733 2,431
- --------------------------------------------------------------------------------------------------------------------------------
Loans, net $ 96,873 101,452 102,783 101,747 102,316
- --------------------------------------------------------------------------------------------------------------------------------
(a) All amounts have been restated to reflect the pooling of interests
acquisition of Signet Banking Corporation on November 28, 1997.
(b) Installment loans - Bankcard include credit card, ICR, signature and First
Choice amounts.
INTANGIBLE ASSETS (A)
(UNAUDITED)
- ----------------------------------------------------------------------------------------------------------------------------
1997 1996
--------------------------------------------------- -----------
FOURTH THIRD SECOND FIRST FOURTH
(IN MILLIONS) QUARTER QUARTER QUARTER QUARTER QUARTER
- ----------------------------------------------------------------------------------------------------------------------------
MORTGAGE AND OTHER SERVICING ASSETS $ 421 380 367 322 282
- ----------------------------------------------------------------------------------------------------------------------------
CREDIT CARD PREMIUM $ 24 26 29 32 35
- ----------------------------------------------------------------------------------------------------------------------------
OTHER INTANGIBLE ASSETS
Goodwill $ 2,247 2,278 2,314 2,354 2,406
Deposit base premium 421 457 488 519 488
Other 6 8 7 9 11
- ----------------------------------------------------------------------------------------------------------------------------
Total $ 2,674 2,743 2,809 2,882 2,905
- ----------------------------------------------------------------------------------------------------------------------------
(a) All amounts have been restated to reflect the pooling of interests
acquisition of Signet Banking Corporation on November 28, 1997.
PAGE 10
FIRST UNION CORPORATION
ALLOWANCE FOR LOAN LOSSES AND NONPERFORMING ASSETS (A)
(UNAUDITED)
- -----------------------------------------------------------------------------------------------------------------------------------
1997 1996
--------------------------------------------------- -----------
FOURTH THIRD SECOND FIRST FOURTH
(IN MILLIONS) QUARTER QUARTER QUARTER QUARTER QUARTER
- -----------------------------------------------------------------------------------------------------------------------------------
ALLOWANCE FOR LOAN LOSSES
Balance, beginning of period $ 1,496 1,490 1,487 1,502 1,506
Provision for loan losses 325 175 178 162 150
Allowance relating to loans acquired, transferred to
accelerated disposition or sold (478) - - (17) 42
Loan losses, net (131) (169) (175) (160) (196)
- -----------------------------------------------------------------------------------------------------------------------------------
Balance, end of period $ 1,212 1,496 1,490 1,487 1,502
- -----------------------------------------------------------------------------------------------------------------------------------
(as % of loans, net) 1.25 % 1.47 1.45 1.46 1.47
- -----------------------------------------------------------------------------------------------------------------------------------
(as % of nonaccrual and restructured loans) 195 % 235 233 209 215
- -----------------------------------------------------------------------------------------------------------------------------------
(as % of nonperforming assets) 168 % 203 201 182 187
- -----------------------------------------------------------------------------------------------------------------------------------
LOAN LOSSES
Commercial, financial and agricultural $ 45 15 13 10 31
Real estate - commercial construction and mortgage 8 8 6 10 13
Real estate - residential mortgage 10 6 13 7 6
Installment loans - Bankcard 60 113 116 107 94
Installment loans - Bankcard special adjustment (b) - - - - 34
Installment loans - other and Vehicle leasing 41 56 55 54 57
- -----------------------------------------------------------------------------------------------------------------------------------
Total 164 198 203 188 235
- -----------------------------------------------------------------------------------------------------------------------------------
LOAN RECOVERIES
Commercial, financial and agricultural 16 8 6 12 12
Real estate - commercial construction and mortgage 3 2 4 1 3
Real estate - residential mortgage - 1 - - 1
Installment loans - Bankcard 5 9 7 6 15
Installment loans - other and Vehicle leasing 9 9 11 9 8
- -----------------------------------------------------------------------------------------------------------------------------------
Total 33 29 28 28 39
- -----------------------------------------------------------------------------------------------------------------------------------
Loan losses, net $ 131 169 175 160 196
- -----------------------------------------------------------------------------------------------------------------------------------
(as % of average loans, net) (c) 0.53 % 0.67 0.69 0.63 0.79
- -----------------------------------------------------------------------------------------------------------------------------------
(as % of average loans, net, excluding Bankcard) (c) 0.33 % 0.27 0.28 0.25 0.35
- -----------------------------------------------------------------------------------------------------------------------------------
NONPERFORMING ASSETS
Nonaccrual loans
Commercial loans $ 236 215 219 231 227
Commercial real estate loans 76 88 101 125 135
Consumer real estate loans 186 188 181 214 199
Installment loans 124 143 136 131 123
- -----------------------------------------------------------------------------------------------------------------------------------
Total nonaccrual loans 622 634 637 701 684
Restructured loans 2 1 2 11 14
Foreclosed properties 99 103 102 107 104
- -----------------------------------------------------------------------------------------------------------------------------------
Total nonperforming assets $ 723 738 741 819 802
- -----------------------------------------------------------------------------------------------------------------------------------
(as % of loans, net and foreclosed properties) 0.75 0.73 0.72 0.80 0.78
- -----------------------------------------------------------------------------------------------------------------------------------
Accruing loans past due 90 days $ 232 306 318 343 361
- -----------------------------------------------------------------------------------------------------------------------------------
(a) All amounts have been restated to reflect the pooling of interests
acquisition of Signet Banking Corporation on November 28, 1997.
(b) Installment loans - Bankcard special adjustment includes a fourth quarter
1996 one-time charge-off related to an anticipated regulatory change which
would reduce the period delinquent loans could be held before charge-off.
(c) Annualized.
PAGE 11
FIRST UNION CORPORATION
CONSOLIDATED BALANCE SHEETS (A)
(UNAUDITED)
- -----------------------------------------------------------------------------------------------------------------------------------
1997 1996
--------------------------------------------------- -----------
FOURTH THIRD SECOND FIRST FOURTH
(IN MILLIONS, EXCEPT PER SHARE DATA) QUARTER QUARTER QUARTER QUARTER QUARTER
- -----------------------------------------------------------------------------------------------------------------------------------
ASSETS
Cash and due from banks $ 6,445 6,661 6,971 6,540 7,076
Interest-bearing bank balances 710 204 492 353 319
Federal funds sold and securities purchased
under resale agreements 7,740 6,898 7,450 5,985 7,802
- -----------------------------------------------------------------------------------------------------------------------------------
Total cash and cash equivalents 14,895 13,763 14,913 12,878 15,197
- -----------------------------------------------------------------------------------------------------------------------------------
Trading account assets 5,457 7,825 5,418 4,194 4,480
Securities available for sale 21,415 18,924 18,817 16,839 16,805
Investment securities 2,175 2,268 2,285 2,408 2,501
Loans, net of unearned income 96,873 101,452 102,783 101,747 102,316
Allowance for loan losses (1,212) (1,496) (1,490) (1,487) (1,502)
- -----------------------------------------------------------------------------------------------------------------------------------
Loans, net 95,661 99,956 101,293 100,260 100,814
- -----------------------------------------------------------------------------------------------------------------------------------
Premises and equipment 4,233 4,228 4,230 4,310 4,257
Due from customers on acceptances 854 838 730 635 764
Other intangible assets 2,674 2,743 2,809 2,882 2,905
Other assets 9,910 4,630 4,300 4,036 4,124
- -----------------------------------------------------------------------------------------------------------------------------------
Total assets $ 157,274 155,175 154,795 148,442 151,847
- -----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Noninterest-bearing deposits 21,753 20,734 20,962 19,978 20,383
Interest-bearing deposits 81,136 78,669 80,027 80,320 82,319
- -----------------------------------------------------------------------------------------------------------------------------------
Total deposits 102,889 99,403 100,989 100,298 102,702
Short-term borrowings 27,357 29,545 29,544 24,500 24,987
Bank acceptances outstanding 855 838 730 635 765
Other liabilities 5,108 4,520 4,018 3,615 3,906
Long-term debt 8,042 8,169 7,608 8,004 8,060
- -----------------------------------------------------------------------------------------------------------------------------------
Total liabilities 144,251 142,475 142,889 137,052 140,420
- -----------------------------------------------------------------------------------------------------------------------------------
Guaranteed preferred beneficial interests 991 990 990 990 495
- -----------------------------------------------------------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY
Preferred stock - - - - -
Common stock, $3.33-1/3 par value; authorized
750,000,000 shares (b) 2,121 2,118 2,091 2,086 2,136
Paid-in capital (b) 1,384 1,296 1,010 1,000 1,668
Retained earnings 8,273 8,115 7,760 7,452 7,126
Unrealized gain (loss) on debt and equity securities, net 254 181 55 (138) 2
- -----------------------------------------------------------------------------------------------------------------------------------
Total stockholders' equity 12,032 11,710 10,916 10,400 10,932
- -----------------------------------------------------------------------------------------------------------------------------------
Total liabilities and stockholders' equity $ 157,274 155,175 154,795 148,442 151,847
- -----------------------------------------------------------------------------------------------------------------------------------
MEMORANDA
Securities available for sale-amortized cost $ 21,020 18,639 18,723 17,049 16,799
Investment securities-market value 2,322 2,412 2,417 2,522 2,636
Common stockholders' equity, net of unrealized
gain (loss) on debt and equity securities $ 12,032 11,710 10,916 10,400 10,932
Common shares outstanding (IN THOUSANDS) (b) 636,394 635,335 627,398 625,914 640,782
- -----------------------------------------------------------------------------------------------------------------------------------
(a) All amounts have been restated to reflect the pooling of interests
acquisition of Signet Banking Corporation on November 28, 1997.
(b) Common share data has been restated for a two-for-one stock split declared
on June 17, 1997, which was paid on July 31, 1997, to holders of record as
of July 1, 1997.
PAGE 12
FIRST UNION CORPORATION
CHANGES IN STOCKHOLDERS' EQUITY (A)
(UNAUDITED)
- -------------------------------------------------------------------------------------------------------------------------------
1997 1996
--------------------------------------------------- -----------
FOURTH THIRD SECOND FIRST FOURTH
(IN MILLIONS) QUARTER QUARTER QUARTER QUARTER QUARTER
- -------------------------------------------------------------------------------------------------------------------------------
Balance, beginning of period $ 11,710 10,916 10,400 10,932 9,578
Net income 362 547 483 504 494
Purchase of common stock - (83) (105) (836) (36)
Common stock issued for stock options
exercised 80 38 118 103 89
Common stock issued through dividend
reinvestment plan 10 - 2 13 3
Common stock issued through public
offerings - 358 - - -
Common stock for purchase accounting
acquisitions - - - 3 884
Cash dividends paid on
Preferred stock - - - - (1)
Common stock (203) (192) (175) (179) (175)
Unrealized gain (loss) on debt and equity
securities, net 73 126 193 (140) 96
- -------------------------------------------------------------------------------------------------------------------------------
Balance, end of period $ 12,032 11,710 10,916 10,400 10,932
- -------------------------------------------------------------------------------------------------------------------------------
(a) All amounts have been restated to reflect the pooling of interests
acquisition of Signet Banking Corporation on November 28, 1997.
CAPITAL RATIOS
(UNAUDITED)
- -----------------------------------------------------------------------------------------------------------------------------
1997 1996
------------------------------------------------------ -----------
FOURTH THIRD SECOND FIRST FOURTH
(IN MILLIONS) QUARTER QUARTER QUARTER QUARTER QUARTER
- -----------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED CAPITAL RATIOS (A)
Tier 1 capital $ 10,216 8,986 8,135 7,752 7,633
Total capital 16,277 15,073 13,614 13,027 12,842
Adjusted risk-based assets 121,039 109,851 107,726 106,451 104,126
Adjusted leverage ratio assets $ 149,921 137,516 130,666 126,465 124,419
Ratios
Tier 1 capital 8.44 % 8.18 7.55 7.28 7.33
Total capital 13.45 13.72 12.64 12.24 12.33
Leverage 6.81 6.53 6.23 6.13 6.13
STOCKHOLDERS' EQUITY TO ASSETS (B)
Quarter-end 7.65 7.55 7.05 7.01 7.20
Average 7.77 % 7.38 7.03 7.27 6.93
- -----------------------------------------------------------------------------------------------------------------------------
(a) The fourth quarter of 1997 is based on estimates. Amounts prior to the
fourth quarter of 1997 have not been restated for the Signet Banking
Corporation acquisition.
(b) All amounts have been restated to reflect the pooling of interests
acquisition of Signet Banking Corporation on November 28, 1997.
PAGE 13
FIRST UNION CORPORATION
NET INTEREST INCOME SUMMARIES (A)
(UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
FOURTH QUARTER 1997 THIRD QUARTER 1997
-----------------------------------------------------------------------------------
AVERAGE AVERAGE
INTEREST RATES INTEREST RATES
AVERAGE INCOME/ EARNED/ AVERAGE INCOME/ EARNED/
(IN MILLIONS) BALANCES EXPENSE PAID BALANCES EXPENSE PAID
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Interest-bearing bank balances $ 382 5 5.30 %$ 489 6 4.74 %
Federal funds sold and securities
purchased under resale agreements 7,527 104 5.44 7,573 104 5.46
Trading account assets 6,383 101 6.30 5,301 88 6.55
Securities available for sale 19,192 331 6.90 18,636 328 6.98
Investment securities
U.S. Government and other 1,473 28 7.46 1,533 28 7.36
State, county and municipal 731 20 10.97 742 21 10.89
- ------------------------------------------------------------------------- -------------------------
Total investment securities 2,204 48 8.63 2,275 49 8.51
- -------------------------------------------------------------------------- -------------------------
Loans
Commercial
Commercial, financial and agricultural 27,094 508 7.44 26,582 510 7.61
Real estate - construction and other 2,486 50 7.95 2,625 58 8.80
Real estate - mortgage 8,726 188 8.55 9,117 202 8.78
Lease financing 3,988 108 10.80 4,043 106 10.42
Foreign 1,299 22 6.62 1,296 20 6.27
- ------------------------------------------------------------------------- ------------------------
Total commercial 43,593 876 7.98 43,663 896 8.14
- ------------------------------------------------------------------------- ------------------------
Retail
Real estate - mortgage 25,719 507 7.89 26,373 519 7.80
Installment loans - Bankcard 4,982 213 17.17 5,321 213 15.87
Installment loans - other and Vehicle
leasing 24,380 582 9.48 25,096 606 9.59
- ------------------------------------------------------------------------- ------------------------
Total retail 55,081 1,302 9.43 56,790 1,338 9.35
- ------------------------------------------------------------------------- ------------------------
Total loans 98,674 2,178 8.79 100,453 2,234 8.82
- ------------------------------------------------------------------------- ------------------------
Total earning assets 134,362 2,767 8.20 134,727 2,809 8.27
---------------------- -----------------------
Cash and due from banks 5,978 5,740
Other assets 12,134 10,895
- ------------------------------------------------------------ ------------
Total assets $ 152,474 $ 151,362
- ------------------------------------------------------------ ------------
LIABILITIES AND STOCKHOLDERS'
EQUITY
Interest-bearing deposits
Savings and NOW accounts 28,585 222 3.09 29,357 219 2.96
Money market accounts 16,073 125 3.09 14,794 119 3.20
Other consumer time 29,482 391 5.27 30,991 409 5.23
Foreign 1,002 17 6.48 1,263 17 5.48
Other time 3,995 66 6.47 3,328 54 6.46
- -------------------------------------------------------------------------- -----------------------
Total interest-bearing deposits 79,137 821 4.11 79,733 818 4.07
Federal funds purchased and securities
sold under repurchase agreements 22,270 282 5.03 22,011 281 5.06
Commercial paper 864 18 8.17 1,089 14 5.36
Other short-term borrowings 5,094 77 6.03 5,616 85 6.00
Long-term debt 8,173 132 6.49 7,854 130 6.51
- -------------------------------------------------------------------------- -----------------------
Total interest-bearing liabilities 115,538 1,330 4.57 116,303 1,328 4.53
---------------------- -----------------------
Noninterest-bearing deposits 20,264 19,197
Other liabilities 3,842 3,696
Guaranteed preferred beneficial interests 990 990
Stockholders' equity 11,840 11,176
- ------------------------------------------------------------ -----------
Total liabilities and stockholders'
equity $ 152,474 $ 151,362
- ------------------------------------------------------------ -----------
Interest income and rate earned $ 2,767 8.20 % $ 2,809 8.27 %
Interest expense and equivalent rate paid 1,330 3.93 1,328 3.91
- -------------------------------------------------------------------------- -----------------------------------
Net interest income and margin $ 1,437 4.27 % $ 1,481 4.36 %
- -------------------------------------------------------------------------- -----------------------------------
(a) All amounts have been restated to reflect the pooling of interests
acquisition of Signet Banking Corporation on November 28, 1997.
PAGE 14
FIRST UNION CORPORATION
NET INTEREST INCOME SUMMARIES (A)
(UNAUDITED)
- --------------------------------------------------------------------------------------------------------------------------------
SECOND QUARTER 1997 FIRST QUARTER 1997 FOURTH QUARTER 1996
------------------------------------------------------------------------------------------------------------------------------
AVERAGE AVERAGE AVERAGE
INTEREST RATES INTEREST RATES INTEREST RATES
AVERAGE INCOME/ EARNED/ AVERAGE INCOME/ EARNED/ AVERAGE INCOME/ EARNED/
BALANCES EXPENSE PAID BALANCES EXPENSE PAID BALANCES EXPENSE PAID
------------------------------------------------------------------------------------------------------------------------------
$ 377 5 5.86% $ 284 3 4.41% $ 141 2 5.74%
7,096 99 5.54 6,110 83 5.59 7,569 101 5.34
4,289 72 6.72 3,557 57 6.49 4,707 81 6.80
19,275 341 7.09 16,525 278 6.84 16,746 284 6.75
1,531 29 7.61 1,646 31 7.47 1,668 32 7.65
766 21 11.21 787 21 11.03 823 22 10.61
--------------------- ------------------------ ------------------------
2,297 50 8.81 2,433 52 8.62 2,491 54 8.63
--------------------- ------------------------ ------------------------
26,661 513 7.72 25,702 485 7.66 25,668 495 7.66
2,795 60 8.65 2,879 61 8.53 2,972 63 8.44
9,289 203 8.77 9,630 200 8.41 9,794 207 8.42
3,919 100 10.19 3,419 83 9.83 2,933 66 8.95
1,290 19 6.14 1,024 16 6.16 910 14 6.16
--------------------- ------------------------ ------------------------
43,954 895 8.17 42,654 845 8.03 42,277 845 7.95
--------------------- ------------------------ ------------------------
27,279 534 7.85 28,601 555 7.87 28,103 543 7.69
5,510 202 14.68 5,514 192 14.09 5,576 186 13.26
24,860 592 9.55 24,243 578 9.67 23,821 571 9.53
--------------------- ------------------------ ------------------------
57,649 1,328 9.24 58,358 1,325 9.21 57,500 1,300 8.99
--------------------- ------------------------ ------------------------
101,603 2,223 8.78 101,012 2,170 8.71 99,777 2,145 8.55
--------------------- ------------------------ ------------------------
134,937 2,790 8.29 129,921 2,643 8.25 131,431 2,667 8.07
-------------------- ----------------------- -----------------------
5,835 5,933 6,130
10,528 10,430 9,920
---------- ---------- -----------
$ 151,300 $ 146,284 $ 147,481
---------- ---------- -----------
29,507 210 2.85 28,840 199 2.80 27,790 188 2.69
14,257 107 3.00 14,696 106 2.93 14,746 113 3.06
31,721 410 5.19 32,920 421 5.18 32,944 428 5.17
3,068 41 5.39 1,821 24 5.27 2,144 29 5.31
3,422 53 6.27 3,684 54 5.94 3,393 54 6.39
--------------------- ------------------------ ------------------------
81,975 821 4.02 81,961 804 3.98 81,017 812 3.99
21,958 275 5.00 18,801 229 4.96 21,483 269 4.97
1,280 18 5.40 905 11 5.05 955 12 5.10
4,630 71 6.21 3,296 47 5.73 3,820 56 5.76
7,707 126 6.59 8,032 130 6.54 7,950 127 6.37
--------------------- ------------------------ ------------------------
117,550 1,311 4.47 112,995 1,221 4.38 115,225 1,276 4.40
-------------------- ---------------------- -----------------------
18,808 18,468 18,771
3,313 3,274 3,078
990 913 188
10,639 10,634 10,219
---------- ---------- -----------
$ 151,300 $ 146,284 $ 147,481
---------- ---------- -----------
$ 2,790 8.29% $ 2,643 8.25% $ 2,667 8.07%
1,311 3.90 1,221 3.81 1,276 3.86
------------------------------- ----------------------------------- ---------------------------
$ 1,479 4.39% $ 1,422 4.44% $ 1,391 4.21%
------------------------------- ----------------------------------- ---------------------------
(a) All amounts have been restated to reflect the pooling of interests
acquisition of Signet Banking Corporation on November 28, 1997.
PAGE 15
FIRST UNION CORPORATION
NET INTEREST INCOME SUMMARIES (A)
(UNAUDITED)
- -------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED 1997 YEAR ENDED 1996
----------------------------------------------------------------------------
AVERAGE AVERAGE
INTEREST RATES INTEREST RATES
AVERAGE INCOME/ EARNED/ AVERAGE INCOME/ EARNED/
(IN MILLIONS) BALANCES EXPENSE PAID BALANCES EXPENSE PAID
- -------------------------------------------------------------------------------------------------------------------------------
ASSETS
Interest-bearing bank balances $ 384 19 5.05% $ 135 7 5.64%
Federal funds sold and securities
purchased under resale agreements 7,082 390 5.50 6,772 359 5.30
Trading account assets 4,892 318 6.49 4,699 312 6.64
Securities available for sale 18,415 1,278 6.94 19,360 1,296 6.69
Investment securities
U.S. Government and other 1,545 116 7.46 1,754 132 7.51
State, county and municipal 756 83 11.00 960 104 10.81
- ----------------------------------------------------------------------------- -----------------------
Total investment securities 2,301 199 8.63 2,714 236 8.68
- ----------------------------------------------------------------------------- -----------------------
Loans
Commercial
Commercial, financial and agricultural 26,514 2,016 7.61 25,347 1,971 7.78
Real estate - construction and other 2,695 229 8.49 2,973 255 8.58
Real estate - mortgage 9,188 793 8.63 9,929 843 8.49
Lease financing 3,844 397 10.31 2,742 242 8.83
Foreign 1,228 77 6.31 757 47 6.24
- ----------------------------------------------------------------------------- -----------------------
Total commercial 43,469 3,512 8.08 41,748 3,358 8.04
- ----------------------------------------------------------------------------- -----------------------
Retail
Real estate - mortgage 26,984 2,115 7.84 27,652 2,143 7.75
Installment loans - Bankcard 5,330 820 15.38 4,922 665 13.51
Installment loans - other and Vehicle leasing 24,646 2,358 9.57 22,859 2,176 9.52
- ----------------------------------------------------------------------------- -----------------------
Total retail 56,960 5,293 9.29 55,433 4,984 8.99
- ----------------------------------------------------------------------------- -----------------------
Total loans 100,429 8,805 8.77 97,181 8,342 8.58
- ----------------------------------------------------------------------------- -----------------------
Total earning assets 133,503 11,009 8.25 130,861 10,552 8.06
----------------------- -------------------
Cash and due from banks 5,871 5,775
Other assets 11,001 8,855
- ----------------------------------------------------------------- -----------
Total assets $ 150,375 $ 145,491
- ----------------------------------------------------------------- -----------
LIABILITIES AND STOCKHOLDERS'
EQUITY
Interest-bearing deposits
Savings and NOW accounts 29,072 850 2.92 27,359 732 2.68
Money market accounts 14,958 457 3.06 14,593 422 2.89
Other consumer time 31,269 1,631 5.22 33,159 1,732 5.22
Foreign 1,785 99 5.53 2,273 119 5.25
Other time 3,607 227 6.28 3,252 185 5.69
- ----------------------------------------------------------------------------- -----------------------
Total interest-bearing deposits 80,691 3,264 4.04 80,636 3,190 3.96
Federal funds purchased and securities
sold under repurchase agreements 21,272 1,067 5.01 21,194 1,051 4.96
Commercial paper 1,034 61 5.90 903 46 5.08
Other short-term borrowings 4,666 280 6.01 3,853 215 5.58
Long-term debt 7,942 518 6.52 7,860 493 6.28
- ----------------------------------------------------------------------------- -----------------------
Total interest-bearing liabilities 115,605 5,190 4.49 114,446 4,995 4.36
----------------------- -------------------
Noninterest-bearing deposits 19,189 18,273
Other liabilities 3,534 2,710
Guaranteed preferred beneficial interests 971 47
Stockholders' equity 11,076 10,015
- ----------------------------------------------------------------- -----------
Total liabilities and stockholders' equity $ 150,375 $ 145,491
- ----------------------------------------------------------------- -----------
Interest income and rate earned $ 11,009 8.25% $ 10,552 8.06%
Interest expense and equivalent rate paid 5,190 3.89 4,995 3.81
- ---------------------------------------------------------------------------------------- ---------------------
Net interest income and margin $ 5,819 4.36% $ 5,557 4.25%
- ---------------------------------------------------------------------------------------- ---------------------
(a) All amounts have been restated to reflect the pooling of interests
acquisition of Signet Banking Corporation on November 28, 1997.