-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, L5j23SmQHMnidVam5mZ/53uXFvdmDIaHhWRtdifkOBaS/U9/EPI9eXGe5+RaigEG A6XJ0j+FrQ2rwZHXfo/A5w== 0000950131-95-000930.txt : 19950415 0000950131-95-000930.hdr.sgml : 19950414 ACCESSION NUMBER: 0000950131-95-000930 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950412 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19950413 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST BANK SYSTEM INC CENTRAL INDEX KEY: 0000036104 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 410255900 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-06880 FILM NUMBER: 95528728 BUSINESS ADDRESS: STREET 1: 601 SECOND AVE S STREET 2: FIRST BANK PL CITY: MINNEAPOLIS STATE: MN ZIP: 55402-4302 BUSINESS PHONE: 6129731111 FORMER COMPANY: FORMER CONFORMED NAME: FIRST BANK STOCK CORP DATE OF NAME CHANGE: 19720317 8-K 1 FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported): APRIL 12, 1995 -------------- FIRST BANK SYSTEM, INC. ----------------------- (Exact name of registrant as specified in its charter) DELAWARE 1-6880 41-0255900 (State or other jurisdiction (Commission (I.R.S. Employer of Incorporation) File Number) Identification No.) 601 SECOND AVENUE SOUTH, MINNEAPOLIS, MINNESOTA 55402 - ----------------------------------------------- ----- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: 612-973-1111 ------------ NOT APPLICABLE -------------- (Former name or former address, if changed since last report) Item 5. Other Events ------------ On April 12, 1995, First Bank System, Inc. (the "Company") released its first quarter, 1995 earnings summary to the public. The Company is hereby filing with the Securities and Exchange Commission a copy of its press release dated April 12, 1995. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits ------------------------------------------------------------------ c.) Exhibits Exhibit 99.1 Press release of First Bank System, Inc. dated April 12, 1995. INDEX TO EXHIBITS Document Page Number -------- ----------- 99.1 Press release of First Bank System, Inc. dated April 12, 1995 3 - 17 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. FIRST BANK SYSTEM, INC. By /s/ David J. Parrin -------------------- David J. Parrin Senior Vice President & Controller Date: April 13, 1995 -------------- - 2 - EX-99.1 2 PRESS RELEASE 4-12-95 [LOGO OF FIRST BANK SYSTEM] Contact: 601 Second Avenue South -------- Minneapolis, MN 55402-4302 Wendy L. Raway John R. Danielson Media Relations Investor Relations (612) 973-2429 (612) 973-2261
FIRST BANK SYSTEM REPORTS RECORD -------------------------------- FIRST QUARTER 1995 OPERATING EARNINGS ------------------------------------- ---------------------------------------------------------------------- 1Q 1Q Percent EARNINGS SUMMARY 1995 1994 Change ---------------------------------------------------------------------- From continuing operations: Operating earnings (in millions) $133.8 $111.9 19.6 Earnings per common share (primary) 0.97 0.80 21.3 Earnings per common share (fully diluted) 0.96 0.79 21.5 Net income (in millions) 133.8 110.7 20.9 Earnings per common share (primary) 0.97 0.79 22.8 Earnings per common share (fully diluted) 0.96 0.78 23.1 Dividends paid per common share 0.3625 0.2900 25.0 Book value per common share (period-end) 19.58 19.49 0.5 Return on average common equity* (%) 21.1 17.2 Return on average assets* (%) 1.66 1.41 Net interest margin (%) 5.05 4.75 Efficiency ratio (%) 55.7 58.5 * from continuing operations ----------------------------------------------------------------------
MINNEAPOLIS, April 12, 1995 -- First Bank System, Inc. (NYSE: FBS) today reported record first quarter operating earnings of $133.8 million, or $0.97 per share, compared with $111.9 million, or $0.80 per share, in the first quarter of 1994. Reported net income for the first quarters of 1995 and 1994 was $133.8 million and $110.7 million, or $0.97 and $0.79 per share, respectively. Return on average assets and return on average common equity in the first quarter of 1995 were 1.66 percent and 21.1 percent, respectively, compared with returns of 1.41 percent and 17.2 percent from continuing operations in the first quarter of 1994. (MORE) First Bank System Reports First Quarter 1995 Results April 12, 1995 Page 2 First Bank System completed its merger with Metropolitan Financial Corporation (MFC) on January 24, 1995, and results for 1994 are restated to reflect this pooling of interests. The operations of Edina Realty, Inc., MFC's real estate brokerage subsidiary, are accounted for as discontinued operations because First Bank System expects to sell the subsidiary within two years to comply with regulations which restrict nonbanking activities. The strong results for the first quarter reflect loan and fee income growth, ongoing expense control, continued improvement in credit quality and effective capital management. During the first quarter of 1995, net interest income on a taxable-equivalent basis increased $27.3 million, or 8.0 percent, and noninterest income increased $18.2 million, or 11.3 percent, as compared with the first quarter of 1994. Net interest income was higher this quarter than in the same period last year primarily because of increases in average loan yields and average loan balances. Noninterest income was higher as a result of growth in fee revenues, primarily from the credit card and trust businesses. The provision for credit losses was essentially unchanged from that of the first quarter of 1994. Noninterest expense for the quarter increased only 3.8 percent over last year, despite the addition of expenses associated with several acquisitions, including Boulevard Bancorp, Inc. of Illinois (Boulevard) and Rocky Mountain Financial Corporation (RMFC), which were both acquired on March 25, 1994, and the corporate trust business of J.P. Morgan, acquired on September 2, 1994. Compared with noninterest expense for the first quarter of 1994, adjusted to include the operations of Boulevard, RMFC and the acquired corporate trust business, on a pro forma basis, noninterest expense for the current quarter declined by $20.4 million, or 6.3 percent. The efficiency ratio, or ratio of expenses to revenues, continued to improve to 55.7 percent, from 58.5 percent for the first quarter of 1994. Credit quality also continued to improve this quarter. Nonperforming assets dropped to $215.7 million at March 31, 1995, a decrease of $16.6 million, or 7.1 percent, from December 31, 1994, and $100.8 million, or 31.8 percent, from March 31, 1994. The ratio of the allowance for (MORE) First Bank System Reports First Quarter 1995 Results April 12, 1995 Page 3 credit losses to nonperforming loans continues to indicate very strong reserve coverage, increasing to 318 percent, from 283 percent at the end of last quarter and 238 percent at March 31, 1994. First Bank System's Chairman, President and Chief Executive Officer, John F. Grundhofer, said, "We are pleased to report another record quarter of strong operating results and momentum in operating earnings per share, reflecting revenue growth, as well as consistent improvement in credit quality and continued cost control. Our efficiency ratio continues to improve as our fee income increases at a fast pace while our expenses continue to be well controlled." Grundhofer added, "During the first quarter, we completed our largest acquisition, Metropolitan Financial Corporation, and fully integrated all of its systems and operations with those of First Bank System within four weeks of closing. We also announced our intention to repurchase 16 million shares of our common stock by the end of 1996, reflecting that our earnings expectations in 1995 and 1996 should generate substantial amounts of excess capital." In February of 1995, First Bank System entered into agreements to sell deposits of approximately $960 million and incidental assets associated with 63 former MFC branch locations. These dispositions are expected to close in the second and third quarters of 1995. This portion of MFC's branch network was neither part of MFC's core business nor material to the operations of MFC and was used primarily as a funding source. The $960 million of deposits will be replaced with other sources of funding. On March 17, 1995, First Bank System announced that it had completed its previously announced acquisition of First Western Corporation, parent company of Western Bank, with $317 million in assets and nine branches in and around Sioux Falls, South Dakota. (MORE) First Bank System Reports First Quarter 1995 Results April 12, 1995 Page 4
------------------------------------------------------------------- INCOME STATEMENT HIGHLIGHTS ------------------------------------------------------------------- (Taxable-equivalent basis, $ in millions) 1Q 1Q Percent 1995 1994 Change ---------------------------- Net interest income $366.8 $339.5 8.0 Provision for credit losses 26.0 26.6 (2.3) Noninterest income 179.6 161.4 11.3 Noninterest expense 304.3 293.1 3.8 ----------------- Income from continuing operations before taxes 216.1 181.2 19.3 Taxable-equivalent adjustment 3.5 3.7 (5.4) Income taxes 78.8 65.6 20.1 ----------------- Income from continuing operations 133.8 111.9 19.6 Discontinued operations -- (1.2) nm ----------------- Net income $133.8 $110.7 20.9 ================= -------------------------------------------------------------------
First quarter net interest income on a taxable-equivalent basis was $366.8 million, an increase of $27.3 million, or 8.0 percent, from the first quarter of 1994. The improvement in net interest income is primarily attributable to increases in average loan yields and average loan balances. The yield on loans in the first quarter averaged 9.06 percent, or 139 basis points higher than the yield of 7.67 percent in the first quarter of last year, reflecting increases in First Bank System's reference rate during 1994 and the increasing proportion of higher yielding consumer loans, which more than offset the impact of higher rates paid on interest-bearing liabilities; the average of these rates was 4.52 percent in the first quarter, or 121 basis points higher than for the same period of 1994. Average loans for the first quarter totaled $24.6 billion, or 6.7 percent higher than the total of $23.1 billion in the first quarter of last year, as a result of growth in both nonmortgage consumer and commercial loans (including loans acquired with Boulevard and RMFC), partially offset by decreases in the balance of loans to mortgage bankers and residential mortgage loans. Excluding these mortgage-related balances and the effect of Boulevard and RMFC loans, average loans for the quarter increased by $2.3 billion, or 14.4 percent, over the same quarter in 1994, reflecting strong growth in small business and middle market loans, credit cards, and home equity loans. The average balance of interest-bearing liabilities in the first quarter of 1995 was higher by (MORE) First Bank System Reports First Quarter 1995 Results April 12, 1995 Page 5 $1.6 billion, or 7.5 percent, than in the first quarter of 1994, primarily due to the replacement of noninterest-bearing deposits related to loans to mortgage bankers with short-term borrowings. Average noninterest-bearing deposits in the first quarter were lower by $1.2 billion, or 17.4 percent, than for the same period of 1994; included in this decrease was a $1.5 billion decline in deposits from customers in the mortgage banking industry. Interest-bearing deposits at March 31, 1995 were $1.2 billion lower than at March 31, 1994, as depositors have invested in mutual funds, annuities and other investment products over the past year. The net interest margin on a taxable-equivalent basis of 5.05 percent in the first quarter of 1995 was higher than the margin of 4.75 percent in the first quarter of 1994 as a result of both a shift in the mix of earning assets, from lower margin securities and residential mortgage-related loan balances to higher yielding consumer and commercial loans, and increases in the reference rate on variable rate loans.
-------------------------------------------------------------------- NONINTEREST INCOME -------------------------------------------------------------------- ($ in millions) 1Q 1Q Percent 1995 1994 Change ------------------------ Credit card fees $51.6 $36.0 43.3 Trust fees 41.7 38.5 8.3 Service charges on deposit accounts 32.1 32.2 (0.3) Insurance commissions 6.3 5.8 8.6 Securities gains (losses) -- -- nm Other 47.9 48.9 (2.0) -------------- Total noninterest income $179.6 $161.4 11.3 ============== ------------------------------------------------------------------
First quarter noninterest income was $179.6 million, an increase of $18.2 million, or 11.3 percent, from the same quarter of 1994, reflecting growth in credit card and trust fees. Credit card fees for the quarter increased $15.6 million, or 43.3 percent, from the first quarter of 1994, as a result of higher sales volumes for Corporate Card, Purchasing Card and the Northwest (MORE) First Bank System Reports First Quarter 1995 Results April 12, 1995 Page 6 Airlines WorldPerks credit card. Trust fees were up over the first quarter of 1994 by $3.2 million, or 8.3 percent, reflecting growth in corporate trust fees, including fees attributable to the September 1994 J.P. Morgan corporate trust unit acquisition. Insurance commissions were higher this quarter because of increased commission income on annuity sales.
------------------------------------------------------------------ NONINTEREST EXPENSE ------------------------------------------------------------------ ($ in millions) 1Q 1Q Percent 1995 1994 Change ------------------------ Salaries $112.1 $106.5 5.3 Employee benefits 28.5 27.3 4.4 Net occupancy 25.7 25.5 0.8 Furniture and equipment 23.5 21.4 9.8 FDIC insurance 13.6 14.6 (6.8) Advertising 6.3 9.5 (33.7) Amortization of goodwill and intangibles 14.1 10.7 31.8 Professional services 6.6 7.5 (12.0) Other 73.9 70.1 5.4 -------------- Total noninterest expense $304.3 $293.1 3.8 ============== ------------------------------------------------------------------
First quarter noninterest expense was higher by $11.2 million, or 3.8 percent, than in the first quarter of 1994. The increase in expenses reflects the addition of Boulevard, RMFC and the J.P. Morgan corporate trust acquisition. Compared with noninterest expense for the first quarter of 1994, adjusted to include the expenses of these acquisitions on a pro forma basis, noninterest expense for the current quarter declined by $20.4 million, or 6.3 percent. Salaries and employee benefits expense for the first quarter increased by $6.8 million, or 5.1 percent, from the first quarter of 1994, primarily due to acquisitions in 1994. Compared with salaries and benefits expense for the same period of last year, adjusted to include acquired operations on a pro forma basis, salaries and benefits expense for the first quarter decreased by $9.0 million, or 6.0 percent. Average full-time equivalent employees decreased by 10.3 percent, to 13,874 in the first quarter of 1995, compared with 15,459 (including the employees of (MORE) First Bank System Reports First Quarter 1995 Results April 12, 1995 Page 7 Boulevard, RMFC and the J.P. Morgan trust business, on a pro forma basis) for the first quarter of 1994. The increase in furniture and equipment expense for the current quarter, compared with the first quarter of 1994, was also the result of acquisition related additions. Advertising expense for the first quarter of 1995 decreased $3.2 million, or 33.7 percent, compared with the level of first quarter 1994, reflecting efficiencies realized from the overlap of MFC's and First Bank System's geographic markets. Compared with the same period of 1994, amortization of goodwill and intangibles expense for the first quarter increased by $3.4 million, or 31.8 percent, as a result of higher intangible balances relating to recent acquisitions. First quarter provision for credit losses was down by $0.6 million (2.3 percent), or essentially unchanged, from the first quarter of 1994. Total net charge-offs for the quarter were also essentially unchanged from the total for same period of 1994, but were down $15.0 million from the fourth quarter of 1994. Commercial loan net recoveries for the quarter were $0.5 million, compared with net charge-offs of $6.9 million in the first quarter of 1994, reflecting continued improvement in the credit quality of this portfolio. Consumer loan net charge-offs increased $8.2 million, or 33.6 percent, from the first quarter of 1994, commensurate with the growth in the balance of nonmortgage consumer loans over the past year, but were up only $1 million, compared with net charge-offs in the fourth quarter of 1994. (MORE) First Bank System Reports First Quarter 1995 Results April 12, 1995 Page 8
---------------------------------------------------------------- ALLOWANCE FOR CREDIT LOSSES ---------------------------------------------------------------- ($ in millions) 1Q 4Q 1Q 1995 1994 1994 ---------------------- Balance, beginning of period $474.7 $477.7 $466.1 Net charge-offs Commercial (0.5) 15.5 6.9 Consumer 32.6 31.6 24.4 ---------------------- Total 32.1 47.1 31.3 Provision for credit losses 26.0 44.0 26.6 Net additions related to acquisitions 1.8 0.1 23.9 ---------------------- Balance, end of period $470.4 $474.7 $485.3 ====================== Net charge-offs to average loans (%) 0.53 0.77 0.55 ----------------------------------------------------------------
The allowance for credit losses was $470.4 million at March 31, 1995, down from $485.3 million at March 31, 1994 and $474.7 million at December 31, 1994. The ratio of allowance for credit losses to nonperforming loans continues to indicate strong reserve coverage, increasing to 318 percent at the end of the first quarter of 1995, compared with 283 percent at the end of 1994 and 238 percent at the end of the first quarter of 1994. (MORE) First Bank System Reports First Quarter 1995 Results April 12, 1995 Page 9
------------------------------------------------------------------- ASSET QUALITY ------------------------------------------------------------------- ($ in millions) Mar. 31 Dec. 31 Mar. 31 1995 1994 1994 -------------------------- Nonperforming loans Commercial $ 20.0 $ 26.6 $ 33.9 Financial institutions -- -- 0.6 HLTs 1.8 9.9 16.1 Commercial real estate 71.5 72.6 79.0 Consumer 54.8 58.8 74.6 ------------------------- Total 148.1 167.9 204.2 Other real estate 63.7 64.0 111.7 Other nonperforming assets 3.9 0.4 0.6 ------------------------- Total nonperforming assets $215.7 $232.3 $316.5 ========================= Accruing loans 90 days past due $34.4 $26.0 $26.7 ========================= Allowance to nonperforming loans (%) 318 283 238 Allowance to nonperforming assets (%) 218 204 153 Nonperforming assets to loans plus ORE (%) 0.85 0.94 1.32 -------------------------------------------------------------------
Nonperforming assets at March 31, 1995 totaled $215.7 million, down $16.6 million, or 7.1 percent, from the end of 1994, and by $100.8 million, or 31.8 percent, from the balance at March 31, 1994. The ratio of nonperforming assets to loans and other real estate was 0.85 percent at March 31, 1995, compared with 0.94 percent at December 31, 1994 and 1.32 percent at March 31, 1994. At March 31, 1995, the common-equity-to-assets ratio was 8.1 percent, compared with the ratio of 7.8 percent at March 31, 1994 and the regional bank peer group average of 7.0 percent at December 31, 1994. Total shareholders' equity-to-assets at March 31, 1995 was 8.4 percent, compared with 8.1 percent at March 31, 1994 and a peer group average of 7.6 percent at December 31, 1994. (MORE) First Bank System Reports First Quarter 1995 Results April 12, 1995 Page 10
----------------------------------------------------------------- CAPITAL POSITION ----------------------------------------------------------------- (Percent) Mar. 31 Mar. 31 1995 1994 ----------------- Common equity to assets 8.1 7.8 Tangible common equity to assets* 6.9 6.7 Total shareholders' equity to assets 8.4 8.1 Tier 1 capital ratio 7.7 8.3 Total risk-based capital ratio 11.8 12.1 Leverage ratio 6.9 7.1 * calculated by deducting goodwill from common equity and assets -----------------------------------------------------------------
During the first quarter of 1995, First Bank System announced plans to repurchase, under two separate programs, up to 16 million shares of its common stock through the end of 1996. The 2 million shares to be repurchased under the first program are intended for employee stock purchase and option plans and the acquisition of First Western Corporation. One million shares were repurchased and subsequently reissued for these purposes during the first quarter. The second program, for the repurchase of 14 million shares, is intended to allow the Company to buy back shares in connection with and predicated on expected future excess capital retention over the next two years, as well as for employee stock purchase and option plans. No shares have been repurchased under this program. First Bank System is a regional bank holding company headquartered in Minneapolis. The Company provides complete financial services to individuals and institutions through 8 banks, a savings association and other financial companies with 343 offices, located primarily in the 11 states of Minnesota, Colorado, North Dakota, South Dakota, Montana, Illinois, Wisconsin, Iowa, Kansas, Nebraska and Wyoming. ### First Bank System, Inc. and Subsidiaries CONSOLIDATED STATEMENT OF INCOME
Three Months Ended ---------------------- March 31 March 31 (In Millions, Except Per-Share Data) 1995 1994 - ----------------------------------------------------------------------------------------- INTEREST INCOME Loans $547.2 $433.7 Securities: Taxable 66.5 71.2 Exempt from federal income taxes 2.8 3.0 Other interest income 9.1 6.7 -------------------------- Total interest income 625.6 514.6 INTEREST EXPENSE Deposits 178.4 136.9 Federal funds purchased and repurchase agreements 30.9 9.7 Other short-term funds borrowed 10.1 6.3 Long-term debt 42.9 25.9 -------------------------- Total interest expense 262.3 178.8 -------------------------- Net interest income 363.3 335.8 Provision for credit losses 26.0 26.6 -------------------------- Net interest income after provision for credit losses 337.3 309.2 NONINTEREST INCOME Credit card fees 51.6 36.0 Trust fees 41.7 38.5 Service charges on deposit accounts 32.1 32.2 Insurance commissions 6.3 5.8 Securities gains (losses) -- -- Other 47.9 48.9 -------------------------- Total noninterest income 179.6 161.4 NONINTEREST EXPENSE Salaries 112.1 106.5 Employee benefits 28.5 27.3 Net occupancy 25.7 25.5 Furniture and equipment 23.5 21.4 FDIC insurance 13.6 14.6 Advertising 6.3 9.5 Amortization of goodwill and other intangible assets 14.1 10.7 Other personnel costs 7.6 8.6 Professional services 6.6 7.5 Data processing 4.3 4.9 Other real estate -- 0.9 Other 62.0 55.7 -------------------------- Total noninterest expense 304.3 293.1 -------------------------- Income from continuing operations before income taxes 212.6 177.5 Applicable income taxes 78.8 65.6 ------------------------- Income from continuing operations 133.8 111.9 Loss from discontinued operations -- (1.2) ------------------------- Net income $133.8 $110.7 ========================= Net income applicable to common equity $131.9 $104.8 ========================= EARNINGS PER COMMON SHARE Primary average common and common equivalent shares 135,545,733 132,349,979 Primary income from continuing operations $.97 $.80 Primary loss from discontinued operations -- ($.01) ------------------------- Primary net income $.97 $.79 ========================= Fully diluted average common and common equivalent shares 139,604,166 136,136,715 Fully diluted income from continuing operations $.96 $.79 Fully diluted loss from discontinued operations -- ($.01) ------------------------- Fully diluted net income $.96 $.78 =========================
Page 11 First Bank System, Inc. and Subsidiaries CONSOLIDATED BALANCE SHEET March 31 March 31 (In Millions) 1995 1994 - ------------------------------------------------------------------------------ ASSETS Cash and due from banks $ 1,598 $ 2,022 Federal funds sold 26 131 Securities purchased under agreements to resell 227 268 Interest-bearing deposits with banks 1 50 Trading account securities 90 60 Available-for-sale securities 3,535 4,932 Investment securities (market value: 3/31/94 - $1,093) -- 1,102 Loans 25,215 23,803 Less allowance for credit losses 470 485 -------------------- Net loans 24,745 23,318 Bank premises and equipment 475 489 Interest receivable 185 183 Customers' liability on acceptances 189 143 Other assets 1,641 1,641 -------------------- Total assets $32,712 $34,339 ==================== LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Noninterest-bearing $ 5,346 $ 7,104 Interest-bearing 18,131 19,362 -------------------- Total deposits 23,477 26,466 Federal funds purchased 1,839 414 Securities sold under agreements to repurchase 440 815 Other short-term funds borrowed 650 702 Long-term debt 2,542 2,124 Acceptances outstanding 189 143 Other liabilities 818 893 -------------------- Total liabilities 29,955 31,557 Shareholders' equity: Preferred stock 106 118 Common stock 169 171 Capital surplus 868 901 Retained earnings 1,671 1,624 Unrealized loss on securities, net of tax (57) (19) Treasury stock -- (13) -------------------- Total shareholders' equity 2,757 2,782 -------------------- Total liabilities and shareholders' equity $32,712 $34,339 ==================== Page 12
CONSOLIDATED DAILY AVERAGE BALANCE SHEET AND RELATED YIELDS AND RATES 1995 --------------------------------- Interest Yields For the Three Months Ended March 31 and (In Millions) Balance Interest Rates - ------------------------------------------------------ --------------------------------- Assets Securities: U.S. Treasury $ 1,065 $ 16.2 6.17% Mortgage-backed securities 2,464 41.6 6.85 State & political subdivisions 175 4.6 10.66 U.S. agencies and other 551 8.3 6.11 ----------------- Total securities 4,255 70.7 6.74 Unrealized gain/(loss) on available-for-sale securities (138) ------- Net securities 4,117 Trading account securities 82 1.1 5.44 Federal funds sold and resale agreements 311 4.6 6.00 Loans: Commercial: Commercial 7,496 165.1 8.93 Financial institutions 724 6.9 3.87 Real estate: Commercial mortgage 2,444 51.5 8.55 Construction 357 8.2 9.32 ----------------- Total commercial 11,021 231.7 8.53 Consumer: Residential mortgage 5,069 96.1 7.69 Residential mortgage held for sale 174 3.5 8.16 Home equity and second mortgage 2,445 56.7 9.40 Credit card 2,294 71.5 12.64 Other 3,589 89.7 10.14 ----------------- Total consumer 13,571 317.5 9.49 ----------------- Total loans 24,592 549.2 9.06 Allowance for credit losses 478 ------- Net loans 24,114 Other earning assets 226 3.5 6.28 ----------------- Total earning assets* 29,466 629.1 8.66 Cash and due from banks 1,677 Other assets 2,175 ------- Total assets $32,702 ======= Liabilities and Shareholders' Equity Noninterest-bearing deposits $5,511 Interest-bearing deposits: Interest checking 2,967 12.4 1.69 Money market accounts 3,739 34.3 3.72 Other savings accounts 1,933 12.2 2.56 Savings certificates 8,347 102.3 4.97 Certificates over $100,000 1,078 17.2 6.47 ----------------- Total interest-bearing deposits 18,064 178.4 4.01 Short-term borrowings 2,801 41.0 5.94 Long-term debt 2,669 42.9 6.52 ----------------- Total interest-bearing liabilities 23,534 262.3 4.52 Other liabilities 1,020 Preferred equity 106 Common equity 2,623 Unrealized gain/(loss) on available-for-sale securities, net of taxes (92) ------- Total liabilities and shareholders' equity $32,702 ======= Net interest income $366.8 ====== Gross interest margin 4.14% ===== Gross interest margin without taxable-equivalent increments 4.09% ===== Net interest margin 5.05% ===== Net interest margin without taxable-equivalent increments 5.00% ===== 1994 -------------------------------- % Change Interest Average Yields Balance For the Three Months Ended March 31 and Increase (In Millions) Balance Interest Rates (Decrease) - ---------------------------------------------------------------------------------------------------------------------- Assets Securities: U.S. Treasury $ 1,676 $ 21.8 5.28% (36.5)% Mortgage-backed securities 2,759 41.9 6.16 (10.7) State & political subdivisions 193 5.0 10.51 (9.3) U.S. agencies and other 430 5.8 5.47 28.1 ----------------- Total securities 5,058 74.5 5.97 (15.9) Unrealized gain/(loss) on available-for-sale securities 51 ------- Net securities 5,109 Trading account securities 64 .6 3.80 28.1 Federal funds sold and resale agreements 547 4.3 3.19 (43.1) Loans: Commercial: Commercial 6,253 105.6 6.85 19.9 Financial institutions 1,715 11.7 2.77 (57.8) Real estate: Commercial mortgage 2,262 45.7 8.19 8.0 Construction 234 4.2 7.28 52.6 ----------------- Total commercial 10,464 167.2 6.48 5.3 Consumer: Residential mortgage 5,312 98.5 7.52 (4.6) Residential mortgage held for sale 680 11.2 6.68 (74.4) Home equity and second mortgage 1,954 38.8 8.05 25.1 Credit card 1,736 56.2 13.13 32.1 Other 2,910 64.0 8.92 23.3 ----------------- Total consumer 12,592 268.7 8.65 7.8 ----------------- Total loans 23,056 435.9 7.67 6.7 Allowance for credit losses 480 (.4) ------- Net loans 22,576 6.8 Other earning assets 245 3.0 4.97 (7.8) ----------------- Total earning assets* 28,970 518.3 7.26 1.7 Cash and due from banks 1,718 (2.4) Other assets 1,900 14.5 ------- Total assets $32,159 1.7 % ======= Liabilities and Shareholders' Equity Noninterest-bearing deposits $6,669 (17.4)% Interest-bearing deposits: Interest checking 3,087 10.4 1.37 (3.9) Money market accounts 4,161 25.1 2.45 (10.1) Other savings accounts 1,937 10.9 2.28 (.2) Savings certificates 7,638 71.0 3.77 9.3 Certificates over $100,000 1,419 19.5 5.57 (24.0) ----------------- Total interest-bearing deposits 18,242 136.9 3.04 (1.0) Short-term borrowings 1,682 16.0 3.86 66.5 Long-term debt 1,973 25.9 5.32 35.3 ----------------- Total interest-bearing liabilities 21,897 178.8 3.31 7.5 Other liabilities 875 16.6 Preferred equity 221 (52.0) Common equity 2,467 6.3 Unrealized gain/(loss) on available-for-sale securities, net of taxes 30 (406.7) ------- Total liabilities and shareholders' equity $32,159 1.7 % ======= Net interest income $339.5 ====== Gross interest margin 3.95% ===== Gross interest margin without taxable-equivalent increments 3.89% ===== Net interest margin 4.75% ===== Net interest margin without taxable-equivalent increments 4.70% ===== Interest and rates are presented on a fully taxable-equivalent basis under a tax rate of 35 percent. Interest income and rates on loans include loan fees. Nonaccrual loans are included in average loan balances. * Before deducting the allowance for credit losses and excluding the unrealized gain/(loss) on available-for-sale securities.
Page 13 Loan Portfolio First Bank System, Inc.
March 31, 1995 December 31, 1994 September 30, 1994 June 30, 1994 March 31, 1994 --------------------------------------------------------------------------------------------- Percent Percent Percent Percent Percent (Dollars in Millions) Amount of Total Amount of Total Amount of Total Amount of Total Amount of Total - --------------------------------------------------------------------------------------------------------------------------------- Commercial: Commercial $ 7,830 31.1% $ 7,002 28.5% $ 7,032 28.9% $ 6,838 28.5% $ 6,487 27.2% Financial institutions 559 2.2 787 3.2 911 3.8 876 3.7 1,370 5.8 Real estate: Commercial mortgage 2,461 9.7 2,454 10.0 2,440 10.0 2,414 10.1 2,353 9.9 Construction 374 1.5 330 1.3 298 1.2 271 1.1 285 1.2 HLTs 348 1.4 283 1.2 273 1.1 260 1.1 191 0.8 -------------------------------------------------------------------------------------------- Total commercial 11,572 45.9 10,856 44.2 10,954 45.0 10,659 44.5 10,686 44.9 Consumer: Residential mortgage 5,060 20.1 5,098 20.8 5,152 21.1 5,238 21.9 5,656 23.8 Residential mortgage held for sale 180 0.7 197 0.8 267 1.1 319 1.3 387 1.6 Home equity and second mortgage 2,505 9.9 2,453 10.0 2,374 9.7 2,300 9.6 2,018 8.5 Credit card 2,248 8.9 2,409 9.8 2,226 9.1 2,142 9.0 1,801 7.5 Automobile 1,837 7.3 1,770 7.2 1,723 7.1 1,639 6.8 1,466 6.2 Revolving credit 737 2.9 725 2.9 699 2.9 685 2.9 680 2.9 Installment 699 2.8 712 2.9 670 2.8 681 2.8 815 3.4 Student loans held for sale 377 1.5 336 1.4 295 1.2 288 1.2 294 1.2 -------------------------------------------------------------------------------------------- Total consumer 13,643 54.1 13,700 55.8 13,406 55.0 13,292 55.5 13,117 55.1 -------------------------------------------------------------------------------------------- Total loans $25,215 100.0% $24,556 100.0% $24,360 100.0% $23,951 100.0% $23,803 100.0% ============================================================================================
Page 14 First Bank System, Inc. and Subsidiaries SUPPLEMENTAL FINANCIAL DATA (Dollars in Millions, Except Per Share Data)
March 31 March 31 1995 1994 ----------- ----------- Ending Common Shares Outstanding 135,421,355 136,659,516 Book Value per Common Share $19.58 $19.49 Intangibles: Goodwill $426 $400 Purchased Mortgage Servicing Rights 42 53 Other Intangibles 194 152 ----------- ----------- Total Intangibles $662 $605 Three Months Ended ------------------------ March 31 March 31 1995 1994 ----------- ----------- Net Interest Income* $ 366.8 $ 339.5 Net Interest Margin* 5.05% 4.75% Efficiency Ratio 55.7% 58.5% Interest Yield on Average Loans 9.06% 7.67% Rate Paid on Average Interest Bearing Liabilities 4.52% 3.31% Return on Average Assets** 1.66% 1.41% Return on Average Common Equity** 21.1% 17.2% Preferred Dividends $1.9 $5.9 Gross Charge-offs $51.7 $54.3 Gross Recoveries $19.6 $23.0 Average Full-Time Equivalent Employees 13,874 14,406 * On a taxable-equivalent basis **From continuing operations
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