-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ra0d6oIdwtSdPqr3HwRH9XgJ2MzCenaVvfVjLbohF76zC7ZpVA4Dh1moPOszvmTL 0+naU8XcUX3ft2aA4JKbog== 0000927016-98-001556.txt : 19980420 0000927016-98-001556.hdr.sgml : 19980420 ACCESSION NUMBER: 0000927016-98-001556 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980416 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19980417 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: BANK OF BOSTON CORP CENTRAL INDEX KEY: 0000036672 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 042471221 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 002-42653 FILM NUMBER: 98596395 BUSINESS ADDRESS: STREET 1: 100 FEDERAL ST CITY: BOSTON STATE: MA ZIP: 02110 BUSINESS PHONE: 6174342200 FORMER COMPANY: FORMER CONFORMED NAME: FIRST NATIONAL BOSTON CORP DATE OF NAME CHANGE: 19830414 8-K 1 FORM 8-K _____________________________________________________________________ _____________________________________________________________________ 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 16, 1998 BANKBOSTON CORPORATION (Exact name of registrant as specified in its charter) MASSACHUSETTS 1-6522 04-2471221 (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.)
100 FEDERAL STREET, BOSTON, MASSACHUSETTS 02110 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (617) 434-2200 _____________________________________________________________________ _____________________________________________________________________ -2- ITEM 5. OTHER EVENTS. - ---------------------- On April 16, 1998, BankBoston Corporation (the Corporation) issued a press release announcing its earnings for the quarter ended March 31, 1998. The financial information that is included herewith as Exhibit 99(a) was included in the Corporation's press release and is incorporated herein by reference. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. - ------------------------------------------- (c) Exhibits. 99(a) Financial information included in the Corporation's Press Release dated April 16, 1998. -3- SIGNATURES 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 hereunto duly authorized. BANKBOSTON CORPORATION Dated: April 17, 1998 /s/ Robert T. Jefferson ------------------------------------------------ Robert T. Jefferson Comptroller EX-99.A 2 PRESS RELEASE DATED APRIL 16, 1998 EXHIBIT 99(A) BANKBOSTON REPORTS FIRST QUARTER NET INCOME OF $238 MILLION OR $1.58 PER SHARE 24% GROWTH IN EPS FROM PRIOR YEAR BOSTON, April 16, 1998 -- BankBoston Corporation (NYSE: BKB) reported today first quarter net income of $238 million, or $1.58 per common share on a diluted basis. This compares with $235 million, or $1.56 per share, in the fourth quarter of 1997 and $207 million, or $1.27 per share, in the first quarter of 1997. Highlights of the quarter were as follows: * Return on average common equity was 21.31% in the first quarter compared with 21.74% in the prior quarter and 18.02% in the first quarter of 1997; * Return on average assets was 1.39% in the first quarter compared with 1.37% in the prior quarter and 1.33% in the first quarter of 1997; * Nonaccrual loans and OREO totaled $369 million at March 31, 1998, compared with $356 million at December 31, 1997 and $445 million at March 31, 1997; * A gain of $165 million was recorded from the previously announced sale of the Corporation's 26% ownership interest in HomeSide Inc., a mortgage banking company; * Provision for credit losses grew $100 million compared with the fourth quarter of 1997, bringing the total first quarter provision to $140 million. Net credit losses were $141 million in the first quarter of 1998, including $16 million related to national credit card receivables and $66 million related to a previously disclosed situation surrounding a series of loans made by an officer in the Corporation's international private banking office in New York for which collection is being vigorously pursued, including claims under insurance. Net credit losses were $60 million in the prior quarter and $79 million in the first quarter of 1997; * Net expenses in the quarter related to the Corporation's de novo branch expansion programs in Argentina and Brazil were $17 million. As of March 31, 1998, the Corporation had opened 46 branches in Argentina and 8 branches in Brazil in connection with these programs; * The quarter included $48 million related to charges for realignments of the Corporation's European operations and domestic private banking business and costs incurred in the New England regional businesses, including the write-off of software, redesign project fees, and costs related to the planned merger of the Rhode Island banking subsidiary into BankBoston, N.A.; * During the quarter, the Corporation was involved in a number of additional transactions. The acquisition of Deutsche Bank's Argentine subsidiary, which included a loan portfolio of approximately $1 billion, was completed as was a venture with Bank of Montreal and First Annapolis into which the Corporation contributed its $1.2 billion national credit card portfolio. In addition, the Corporation entered into an agreement to acquire OCA, the largest credit card and consumer finance company in Uruguay and the Corporation's 50% owned stock transfer subsidiary, Boston EquiServe, entered into a merger agreement with the stock transfer business of First Chicago NBD. NONINTEREST INCOME The components of noninterest income are as follows:
Fourth Quarter First Quarter - --------- ---------------------- 1997 (in millions) 1998 1997 Change - --------- --------- -------- ---------- $194 Financial service fees $163 $138 $ 25 68 Net equity and mezzanine profits 52 37 15 30 Mutual fund fees 31 25 6 38 Personal trust fees 40 34 6 7 Other trust and agency fees 8 7 1 (9) Trading profits and commissions 34 19 15 31 Net foreign exchange trading profits 28 19 9 27 Securities portfolio gains, net 25 9 16 22 Other income 43 42 1 0 Gain on sale of HomeSide 165 0 165 ----- ----- ----- ---- $408 Total $589 $330 $259 ===== ===== ===== ====
* Changes in financial service fees are detailed below. * Equity and mezzanine profits reflected the ongoing strong performance of the Corporation's Private Equity business. At March 31, 1998, the Private Equity portfolio had a carrying value of $1.2 billion compared with approximately $750 million at March 31, 1997. * Mutual fund fees improved in both comparisons, reflecting higher levels of fees from international operations. The combined level of assets under management in Argentina and Brazil has risen to $6.5 billion at March 31, 1998 compared with $4.8 billion at March 31, 1997. In addition, higher fees from the International Private Banking business also contributed to the increases. * The increase in personal trust fees from prior year periods mainly relates to an increase in domestic assets under management. * The growth in trading account profits and commissions from the fourth quarter reflects improved results from the emerging markets and domestic high yield units. The fourth quarter level was affected by losses that were incurred during October from trading in emerging markets securities and resulted from volatility in the world financial markets that was induced by the ongoing crisis in Asia. Compared with the first quarter of 1997, the increase is attributable to improved performances in the domestic high yield and derivatives units. * Foreign exchange profits were strong in the current quarter and in the fourth quarter of 1997 as a result of the volatile market conditions discussed above, which has led to a higher customer demand for products. Compared with the prior year, the growth also reflects the Corporation's increased emphasis on this segment of its Global Capital Markets business. * Securities gains in both the current quarter and fourth quarter of 1997 contained higher than normal levels of gains from sales of emerging markets securities. An increase in gains from domestic securities sales also contributed to the growth in both comparisons. * The growth in other income from the fourth quarter reflected earnings from an investment in bank owned life insurance policies, which was largely offset by the funding cost for the investment that was included in net interest revenue, higher gains from sales of loans and other assets, and higher earnings from joint ventures. Compared with the first quarter of last year, the increase from the life insurance policies was offset by lower earnings from joint ventures. The components of financial service fees are as follows:
Fourth Quarter First Quarter - --------- ------------------------ 1997 (in millions) 1998 1997 Change - --------- --------- ---------- --------- $ 70 Deposit and ATM-related fees $ 70 $ 58 $12 20 Letters of credit and acceptance fees 18 17 1 35 Syndication and agent fees 15 14 1 10 Other loan-related fees 9 9 0 59 Other 51 40 11 ----- ----- ----- --- $194 Total $163 $138 $25 ===== ===== ===== ===
* Deposit and ATM-related fees increased from the first quarter of 1997 mainly due to repricing of certain domestic products and an increase in fees from Argentine operations. * Syndication and agent fees declined from an exceptionally high level recorded during the fourth quarter. * The decline in other financial service fees from the fourth quarter is due mainly to lower levels of advisory and underwriting fees. Higher levels of advisory and underwriting fees, coupled with an increase in credit card fees from Argentina, were responsible for the growth from the first quarter of last year. NET INTEREST REVENUE Net interest revenue, on a fully taxable equivalent basis, was $607 million for the first quarter of 1998, compared with $631 million in the prior quarter and $625 million in the first quarter of 1997. Net interest margin was 4.07% for the first quarter of 1998, compared with 4.20% in the fourth quarter of 1997 and 4.47% in the first quarter of last year. The declines in net interest revenue and net interest margin from the prior quarter reflected a lower level of dividends from private equity investments, funding costs associated with bank owned life insurance policies (see Noninterest Income for a discussion of offsetting revenue) and the contribution of the high margin national credit card business into a venture during the first quarter. The change in net interest revenue also included increases from the acquisition of Deutsche Bank Argentina S.A. and a higher level of average earning assets, offset by two fewer days in the first quarter accrual period. Net interest margin was affected by narrower spreads in Latin America as local markets were less volatile than in the fourth quarter. Compared with the first quarter of 1997, net interest revenue and net interest margin were both lower reflecting the Corporation's exit from its national consumer businesses [Fidelity Acceptance Corporation, Ganis and credit card] coupled with the impact of the bank owned life insurance investment discussed above. In addition, narrower spreads in Argentina also contributed to the decline in net interest margin. Net interest revenue was favorably affected by an increase in average earning assets, which were up approximately $6 billion, excluding the effect of national consumer loans. This included an increase in average loans and leases of approximately $5 billion mainly reflecting growth in Argentina, including the impact of the Deutsche Bank Argentina S.A. acquisition, and the domestic commercial portfolio. NONINTEREST EXPENSE The components of noninterest expense are as follows:
Fourth Quarter First Quarter - --------- --------------------- 1997 (in millions) 1998 1997 Change - --------- --------- ------- ---------- $339 Employee costs $354 $311 $ 43 90 Occupancy & equipment 94 87 7 23 Professional fees 24 12 12 34 Advertising and public relations 22 22 0 29 Communications 30 26 4 6 Goodwill amortization 8 7 1 79 Other 129 77 52 ----- ----- ----- ---- 600 Subtotal 661 542 119 0 OREO costs 0 2 (2) ----- ----- ----- ---- $600 Total $661 $544 $117 ===== ===== ===== ====
Noninterest expense before OREO costs, was $661 million in the first quarter of 1998, compared with $600 million in the prior quarter and $542 million for the same quarter in 1997. * The current quarter included $48 million related to charges for realignments of the Corporation's European operations and domestic private banking business and costs incurred in the New England regional businesses, including the write-off of software, redesign project fees, and the planned merger of the Rhode Island banking subsidiary into BankBoston, N.A. * Net expenses in the quarter related to the Corporation's de novo branch expansion programs in Argentina and Brazil were $17 million, an increase of approximately $10 million from the prior quarter. As of March 31, 1998, the Corporation had opened 46 branches in Argentina and 8 branches in Brazil in connection with these programs. Excluding the impact of the Deutsche Bank Argentina S.A. acquisition which is discussed below, the number of employees in Argentina and Brazil grew by over 100 since the end of 1997 and by over 800 since March 31, 1997. * During the quarter, the Corporation acquired Deutsche Bank Argentina S.A. which resulted in the addition of nearly 1,000 employees and an increase in noninterest expense of approximately $10 million. * Partially offsetting the increases discussed above was a lower level of advertising costs reflecting declines in several business units. Compared with the first quarter of last year, noninterest expense, before special items and OREO costs, grew $119 million. The items discussed above accounted for $75 million of this increase. Investment spending in Latin America, in addition to the de novo costs and the acquisition discussed above, and the ongoing buildup of the Corporation's Corporate Banking and Global Capital Markets businesses, including the launching of a Section 20 subsidiary, the formation of a high yield desk, and higher incentive compensation in line with the growth in revenues also contributed to the increase. Partially offsetting these increases was the absence of expenses from the national consumer businesses. CREDIT PROFILE Loan and Lease Portfolio The segments of the lending portfolio are as follows:
(in millions) 3-31-98 12-31-97 9-30-97 6-30-97 3-31-97 -------- --------- -------- -------- -------- United States Operations: Commercial, industrial and financial $15,887 $15,268 $15,062 $14,527 $14,203 Commercial real estate Construction 260 271 317 314 265 Other commercial real estate 3,736 4,211 3,845 3,398 3,129 Consumer-related loans: Residential mortgages 2,551 2,570 2,720 3,016 3,067 Home equity 2,802 2,823 2,952 2,924 2,908 Credit card 503 1,756 1,596 1,488 1,404 Other 2,801 2,956 3,118 4,739 4,708 Lease financing 2,017 1,938 1,880 1,780 1,766 Unearned income (303) (302) (293) (277) (275) -------- --------- -------- -------- -------- 30,254 31,491 31,197 31,909 31,175 -------- --------- -------- -------- -------- International Operations: Commercial 11,051 10,159 9,261 8,643 8,208 Consumer-related loans: Residential mortgages 1,015 947 893 781 744 Credit card 188 182 155 148 137 Other 943 828 678 566 501 Lease financing 517 452 345 357 338 Unearned Income (146) (79) (68) (91) (84) -------- --------- -------- -------- -------- 13,568 12,489 11,264 10,404 9,844 -------- --------- -------- -------- -------- Total loans and lease financing $43,822 $43,980 $42,461 $42,313 $41,019 ======== ========= ======== ======== ========
Loans and leases were $43.8 billion at March 31, 1998, compared with $44.0 billion at December 31, 1997. The domestic portfolio declined approximately $1.2 billion mainly reflecting the contribution of the Corporation's national credit card business into a venture with Bank of Montreal and First Annapolis, the ongoing reduction in the indirect auto portfolio, and a lower level of commercial real estate loans. The latter is heavily affected by the timing of syndication activities. Partially offsetting these declines in the domestic portfolio were increases in certain commercial lending units including environmental services, asset based finance, and financial institutions. International loans increased approximately $1.1 billion reflecting the Corporation's acquisition of Deutsche Bank Argentina S.A. Nonaccrual Loans and OREO Nonaccrual loans and OREO amounted to $369 million at March 31, 1998, compared with $356 million at December 31, 1997, and $445 million at March 31, 1997. The $13 million increase from the end of 1997 reflected the addition of $21 million of nonaccrual loans and OREO from Deutsche Bank Argentina S.A. and the placement of approximately $20 million of Indonesian loans on nonaccrual, partially offset by a $20 million decline from the contribution of the national credit card business into a venture and a $16 million decline in domestic commercial loans. Nonaccrual loans and OREO represented .8% of related assets at March 31, 1998 and December 31, 1997, compared with 1.1% at March 31, 1997. The components of consolidated nonaccrual loans and OREO are as follows:
(in millions) 3-31-98 12-31-97 9-30-97 6-30-97 3-31-97 -------- --------- -------- -------- -------- Domestic nonaccrual loans: Commercial, industrial and financial $ 43 $ 59 $ 68 $ 39 $ 72 Commercial real estate Construction 3 3 4 3 4 Other commercial real estate 41 40 44 48 47 Consumer-related loans Residential mortgages 46 50 51 56 65 Home equity 15 14 26 26 25 Credit card 6 26 22 22 23 Other 20 20 23 44 41 -------- --------- -------- -------- -------- 174 212 238 238 277 -------- --------- -------- -------- -------- International nonaccrual loans: Commercial 103 64 58 72 82 Consumer-related loans Residential mortgages 30 28 31 29 26 Credit card 3 4 3 4 4 Other 17 12 7 8 7 -------- --------- -------- -------- -------- 153 108 99 113 119 -------- --------- -------- -------- -------- Total nonaccrual loans 327 320 337 351 396 OREO 42 36 50 47 49 -------- --------- -------- -------- -------- Total $369 $356 $387 $398 $445 ======== ========= ======== ======== ========
Provision and Reserve for Credit Losses The reserve for credit losses at March 31, 1998 was $725 million, or 1.65% of outstanding loans and leases, compared with $712 million, or 1.62% at December 31, 1997, and $864 million, or 2.11% at March 31, 1997. The reserve for credit losses was 222% of nonaccrual loans at March 31, 1998 and December 31, 1997, compared with 218% at March 31, 1997. The provision for credit losses was $140 million in the first quarter of 1998, compared with $40 million in fourth quarter of 1997 and $60 million in the first quarter of 1997. Net credit losses were $141 million in the first quarter of 1998, compared with $60 million in the fourth quarter of 1997 and $79 million in the first quarter of 1997. Net credit losses in the current quarter included $66 million related to a previously discussed situation surrounding a series of loans made by an officer in the Corporation's international private banking office in New York. In addition, the first quarter included $16 million related to the national credit card portfolio that was moved into a venture and $15 million related to two large commercial loans. Net credit losses as a percent of average loans and leases on an annualized basis were 1.30% in the first quarter of 1998 (.69% without the $66 million chargeoff from international private banking), compared with .55% for the fourth quarter of 1997 and .77% for the first quarter of 1997. Net credit losses were as follows:
Fourth Quarter First Quarter - ----------- ------------------------------ 1997 (in millions) 1998 1997 - ----------- ------------ ------------- Domestic $ 8 Commercial, industrial and financial $ 13 $18 0 Commercial real estate (1) 0 Consumer-related loans: 2 Residential mortgages 2 1 25 Credit card 20 19 2 Home equity 2 2 15 Other 19 35 ----- ----- ----- 52 55 75 International 1 Commercial 76 (1) Consumer-related loans: 2 Credit card 2 2 5 Other 8 3 ----- ----- ----- 8 86 4 ----- ----- ----- $ 60 Total $141 $79 ===== ===== =====
THE CORPORATION BankBoston, with assets of $71.4 billion and some 23,000 employees, is the nation's oldest commercial bank and New England's only global bank. BankBoston is engaged in consumer, small business, and corporate banking in New England; delivering sophisticated financial solutions to corporations and governments nationally and internationally; and full service banking in leading Latin American markets. The Corporation's common and preferred stocks are listed on the New York and Boston stock exchanges. CONSOLIDATED BALANCE SHEET (dollars in millions)
December 31 March 31 - ------------------- ------------------- 1997 1998 1997 - ------------------- ------- ------- Assets Securities: $ 9,847 Available for sale $10,556 $ 9,082 636 Held to maturity 648 692 43,980 Loans and lease financing 43,822 41,019 (712) Reserve for credit losses (725) (864) ------- ------- ------- 43,268 Net loans and lease financing 43,097 40,155 5,442 Other earning assets 5,875 5,754 10,075 Cash and other nonearning assets 11,252 9,097 ------- ------- ------- $69,268 Total Assets $71,428 $64,780 ======= ======= ======= Liabilities and Stockholders' Equity $45,761 Deposits $46,397 $42,307 11,723 Funds borrowed 12,495 11,839 2,941 Notes payable 3,469 2,708 3,486 Other liabilities 3,513 2,565 Guaranteed preferred beneficial interests in 747 corporation's junior subordinated debentures 747 500 ------- ------- ------- 64,658 Total Liabilities 66,621 59,919 ------- ------- ------- Stockholders' Equity 278 Preferred equity 278 508 4,332 Common equity 4,529 4,353 ------- ------- ------- 4,610 Total Stockholders' Equity 4,807 4,861 ------- ------- ------- $69,268 Total Liabilities and Stockholders' Equity $71,428 $64,780 ======= ======= =======
SELECTED AVERAGE BALANCES
Quarter Ended Quarters Ended - ------------------- -------------- December 31 March 31 - ------------------- -------------- 1997 1998 1997 - ------------------- --------- -------------- Assets $43,242 Loans and lease financing $43,706 $41,732 10,538 Securities 10,606 9,261 59,554 Total earning assets 60,487 56,641 68,092 Total assets 69,710 63,224 Liabilities and Stockholders' Equity 35,834 Interest bearing deposits 37,158 34,349 8,418 Noninterest bearing deposits 8,616 7,550 ------- ------- ------- 44,252 Total deposits 45,774 41,899 3,524 Notes payable 3,749 3,316 52,088 Total interest bearing liabilities 53,216 48,531 4,202 Common stockholders' equity 4,452 4,444 4,480 Total stockholders' equity 4,730 4,952
NUMBER OF EMPLOYEES
Mar 31 Dec 31 Mar 31 1998 1997 1997 ----------- ----------- ----------- Full time equivalent employees 22,500 21,500 22,000
CONSOLIDATED STATEMENT OF INCOME (dollars in millions, except per share amounts)
Quarter Ended Quarters Ended December 31 March 31 - ----------------- --------------------------- 1997 1998 1997 - ----------------- ---------- --------- $1,341.5 Interest income $1,337.4 $1,275.0 720.0 Interest expense 734.1 655.0 -------- -------- -------- 621.5 Net interest revenue 603.3 620.0 40.0 Provision for credit losses 140.0 60.0 -------- -------- -------- Net interest revenue after provision 581.5 for credit losses 463.3 560.0 -------- -------- -------- Noninterest income: 193.6 Financial service fees 162.8 137.5 74.8 Trust and agency fees 79.3 66.0 (8.6) Trading profits and commissions 34.0 19.3 27.4 Securities portfolio gains, net 24.8 8.8 121.2 Other income 288.1 98.1 -------- -------- -------- 408.4 Total noninterest income 589.0 329.7 -------- -------- -------- Noninterest expense: 283.0 Salaries 292.7 257.7 56.3 Employee benefits 60.9 52.7 51.3 Occupancy expense 54.4 50.8 38.4 Equipment expense 40.1 35.6 171.4 Other expense 212.5 145.9 -------- -------- -------- 600.4 Subtotal 660.6 542.7 0.1 OREO costs 0.4 1.5 -------- -------- -------- 600.5 Total noninterest expense 661.0 544.2 -------- -------- -------- 389.4 Income before income taxes 391.3 345.5 154.7 Provision for income taxes 153.0 138.7 -------- -------- -------- $ 234.7 NET INCOME $ 238.3 $ 206.8 ======== ======== ======== NET INCOME PER COMMON SHARE: $ 1.59 Basic $ 1.60 $ 1.29 $ 1.56 Diluted $ 1.58 $ 1.27 $ .51 DIVIDENDS PAID PER COMMON SHARE $ .58 $ .44 Average number of common shares, in thousands: 145,241 Basic 146,271 153,421 147,309 Diluted 148,420 155,592 $ 4.4 Preferred dividends $ 4.4 $ 9.3
OTHER DATA (dollars in millions, except per share amounts)
Quarter Ended Quarters Ended - ----------------- -------------- December 31 March 31 - ----------------- -------------- 1997 1998 1997 - ----------------- ---------- -------------- 1.37% Return on average total assets (annualized) 1.39% 1.33% 21.74% Return on average common equity (annualized) 21.31% 18.02% $631.1 Net interest revenue, fully taxable equivalent basis $607.0 $625.0 4.20% Net interest margin 4.07% 4.47% 4.30% Domestic net interest margin (estimated) 4.14% 4.54% 3.97% International net interest margin (estimated) 3.92% 4.30%
December 31 March 31 - ----------------- ------------------------------ 1997 1998 1997 - ----------------- ----------- ----------- COMMON STOCKHOLDERS' EQUITY: $ 4,332 Common stockholders' equity $ 4,529 $ 4,353 145,707 Common shares outstanding, in thousands 146,706 151,807 Per common share: $ 29.73 Book value $ 30.87 $ 28.67 93.94 Market value 110.25 67.00 CAPITAL RATIOS/REGULATORY CAPITAL: 5.81% Tangible Common Equity ratio 5.75% 6.13% Risk-based capital ratios: Estimate 8.0% Tier 1 capital ratio (minimum required 4.00%) 7.9% 9.0% 12.1% Total capital ratio (minimum required 8.00%) 12.3% 13.0% 7.4% Leverage ratio 7.3% 7.8% $ 4,971 Tier 1 capital $ 5,045 $ 4,838 7,519 Total capital 7,869 7,044 62,216 Total risk-adjusted assets 63,816 54,034
RESERVE FOR CREDIT LOSSES (dollars in millions)
Quarter Ended Quarters Ended December 31 March 31 - ----------------- ------------------------------ 1997 1998 1997 - ----------------- ----------- ---------- $729.1 Beginning balance $ 711.6 $883.3 40.0 Provision for credit losses 140.0 60.0 2.7 Reserve of acquired companies 14.0 0.0 (83.2) Credit losses (156.1) (96.7) 23.0 Recoveries 15.6 17.4 ------- ------- ------ (60.2) Net credit losses (140.5) (79.3) ------- ------- ------ $711.6 Ending balance $ 725.1 $864.0 ======= ======= ====== 1.62% Reserve as a % of loans and leases 1.65% 2.11% ======= ======= ====== 222% Reserve as a % of nonaccrual loans 222% 218% ======= ======= ======
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