-----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, OQ9so2pRth+SBY37LL0SCwrw1zvSyMr5Uib95HhAdvNfVJxHjbyPgauCwS34Mjlj 8PRURVodsJiaQVXUsC5oIQ== 0000927016-97-001115.txt : 19970421 0000927016-97-001115.hdr.sgml : 19970421 ACCESSION NUMBER: 0000927016-97-001115 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970417 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19970418 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: 1934 Act SEC FILE NUMBER: 001-06522 FILM NUMBER: 97583545 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 17, 1997 BANK OF BOSTON 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 17, 1997, Bank of Boston Corporation (the Corporation) issued a press release announcing its earnings for the quarter ended March 31, 1997. 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 17, 1997. -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. BANK OF BOSTON CORPORATION Dated: April 18, 1997 /s/ Robert T. Jefferson ------------------------------------------------ Robert T. Jefferson Comptroller EX-99.A 2 FINANCIAL INFORMATION/PRESS RELEASE EXHIBIT 99 (A) BANKBOSTON REPORTS FIRST QUARTER NET INCOME OF $207 MILLION OR $1.27 PER SHARE 12% GROWTH IN EPS FROM PRIOR YEAR COMMON DIVIDEND INCREASED 16% TO 51 CENTS PER SHARE BOSTON, April 17, 1997 -- Bank of Boston Corporation ("BankBoston"; NYSE: "BKB") reported today first quarter net income of $207 million, or $1.27 per common share on a fully diluted basis compared with net income for the first quarter of 1996 of $186 million, or $1.13 per share, before special items related to the sale of the mortgage banking subsidiary ($155 million, or $.93 per share, including these special items). Net income for the fourth quarter of 1996 was $202 million, or $1.24 per share. Operating highlights were (amounts shown are before special items): - On a fully taxable equivalent basis, operating income (before credit costs) was $413 million in the first quarter, compared with $410 million in the prior quarter and $381 million in the first quarter of 1996; - Return on average common equity was 18.02% in the first quarter compared with 17.71% in the prior quarter and 16.96% in the first quarter of 1996; - Return on average assets was 1.33% in the first quarter, 1.31% in the prior quarter and 1.28% in the first quarter of 1996; - Nonaccrual loans and OREO totaled $445 million at March 31, 1997, compared with $452 million at December 31, 1996 and $449 million at March 31, 1996. Net credit losses were $79 million in the first quarter compared with $75 million in the prior quarter and $51 million in the first quarter of 1996. The Board of Directors approved an increase in the Corporation's quarterly dividend on common stock to 51 cents per share from 44 cents per share. The dividend is payable on May 30 to stockholders of record on May 5. NONINTEREST INCOME The components of noninterest income are as follows:
Fourth Quarter First Quarter - ------- ------------- 1996 (in millions) 1997 1996 Change ----- ---- ---- ------ $ 147 Financial service fees $ 138 $ 163 $(25) 45 Net equity and mezzanine profits 37 37 0 25 Mutual fund fees 25 21 4 34 Personal trust fees 34 32 2 6 Other trust and agency fees 7 4 3 17 Trading profits and commissions 19 13 6 17 Net foreign exchange trading profits 19 13 6 Securities portfolio gains, net (before 7 valuation charges in Q4'96) 9 13 (4) 31 Other income 42 40 2 11 Other items 0 0 0 ----- ----- ----- ---- 340 Subtotal 330 336 (6) Mortgage banking related items, net 0 (details on following page) 0 (51) 51 ----- ---- ----- ---- $ 340 Total $ 330 $ 285 $ 45 ===== ===== ===== ====
- Changes in financial service fees are detailed below. The decline from the first quarter of 1996 was greatly influenced by the sale of the Corporation's mortgage banking subsidiary in March 1996. - Equity and mezzanine profits declined from the fourth quarter of 1996 and were flat with the prior year. The Corporation continues to make new investments and the portfolio balance has grown over $200 million since the beginning of 1996. - Mutual fund fees were flat with the fourth quarter of 1996 and improved $4 million from the prior year. The increase from the prior year was due, in part, to higher levels of funds under management in Brazil. These funds stood at $4.1 billion at March 31, 1997 compared with $3.0 billion a year earlier. - The increase in personal trust and other trust and agency fees from the first quarter of last year reflected a higher level of assets under management and higher custody fees, respectively. - Trading account profits and commissions improved in both comparisons driven mainly by a higher level of profits from Brazil. - The growth in foreign exchange profits from the prior periods reflected the Corporation's increased emphasis in this segment of its Global Capital Markets business. - The combination of other income and other items was flat with the prior quarter. Other income in the first quarter of 1997 included gains from the sale of consumer loans and a higher level of income from the Corporation's Argentine pension management and mortgage banking joint ventures, which included the effect of the recently completed initial public offering by HomeSide, Inc. Amounts included within other items in the fourth quarter of 1996 were as follows: (1) a gain of $47 million from the previously announced sale of twenty branches to US Trust, which involved the transfer of approximately $700 million of deposits and $500 million of loans, (2) a charge of $25 million from the transfer of approximately $400 million of commercial real estate loans into a held for sale account as part of the Corporation's balance sheet management program, and (3) valuation- related charges of $11 million associated with certain investments. The components of financial service fees are as follows:
Fourth - ------- First Quarter Quarter --------------- - ------- 1996 (in millions) 1997 1996 Change - ---- ----- ----- ------ $ 59 Deposit and ATM-related fees $ 57 $ 59 $ (2) 17 Letters of credit and acceptance fees 17 17 0 21 Syndication and agent fees 14 10 4 10 Other loan-related fees 9 11 (2) Net mortgage servicing fees 0 (before items detailed below) 0 22 (22) 40 Other 41 44 (3) - ---- ----- ----- ----- $147 Total $ 138 $ 163 ($25) ==== ===== ===== =====
- Deposit and ATM-related fees declined in both comparisons due, in part, to the fourth quarter sale of branches to US Trust. - Syndication and agent fees declined from the unusually high level of income attained during the fourth quarter of 1996. The increase from the prior year reflected a higher volume of transactions generated by the Corporation's corporate finance business. - The decline in net mortgage servicing fees from the prior year reflected the sale of the Corporation's mortgage banking subsidiary. - The decline in other financial service fees from the prior year is mainly due to lower levels of credit insurance and advisory fees. Mortgage banking-related special items included in the first quarter of 1996 were as follows:
(in millions) Sale of mortgage subsidiary $ 60 Contracts used to manage prepayment risk, net (111) ----- Total $ (51) =====
During the first quarter of 1996 the Corporation recorded a net pre-tax loss of $51 million from mortgage banking-related items. As a result of the first quarter's rising rate environment, a loss of $111 million (net of decreased servicing amortization) was recorded from the change in market value of contracts used to manage prepayment risk in the mortgage servicing portfolio which, in turn, protected the economic value of the Corporation's mortgage banking subsidiary pending the completion of its sale to HomeSide, Inc. The completion of this transaction resulted in the recognition of gains totaling $106 million of which $60 million was recorded in the first quarter and $46 million was recorded in the second quarter. The Corporation now owns a 26% interest in HomeSide, Inc., which ranks among the country's largest mortgage banking companies. NET INTEREST REVENUE Net interest revenue, on a fully taxable equivalent basis, was $625 million for the first quarter of 1997, compared with $616 million in the prior quarter and $571 million in the first quarter of 1996. Net interest margin was 4.47% for the first quarter of 1997 and the fourth quarter of 1996, compared with 4.40% in the first quarter of last year. The $9 million increase in net interest revenue from the prior quarter reflected a growth in average earning assets of approximately $2 billion, higher levels of dividends from UK and Argentine equity investments, interest recoveries on loans, and wider spreads from the credit card business as the "promotional rate" period expired on additional loans in the portfolio. These factors were partially offset by the full quarter impact of the sale of approximately $700 million of retail deposits to US Trust, which occurred in the fourth quarter, and fewer days in the first quarter. Net interest margin was flat compared with the fourth quarter. The favorable impact of the equity dividends, interest recoveries, and wider credit card spreads served to offset a decline in margin from the US Trust sale and the aforementioned growth in average earning assets. The latter stemmed from an increase in various categories of treasury assets, mainly investment securities, as the Corporation sought to invest a portion of its excess capital in productive assets. Compared with the prior year, net interest revenue and margin each improved. Contributing to the increase in net interest revenue were higher levels of average earning assets, which increased by over $4 billion, including an increase of $2.6 billion in average loans and leases. Increases in domestic commercial and consumer loans coupled with growth in the Latin American portfolio were partially offset by a decline in residential mortgages, which reflected sales that took place during 1996. The equity dividends and interest recoveries discussed above were also factors in the net interest revenue increase and were the main reasons for the improvement in net interest margin. NONINTEREST EXPENSE The components of noninterest expense are as follows:
Fourth - ------- First Quarter Quarter - ------- ------------ 1996 (in millions) 1997 1996 Change ----- ----- ----- ------ $ 299 Employee costs $ 310 $ 293 $17 87 Occupancy & equipment 86 85 1 14 Professional fees 12 13 (1) 24 Advertising and public relations 22 27 (5) 27 Communications 26 26 0 7 Goodwill amortization 7 5 2 88 Other 79 76 3 ----- ----- ----- --- 546 Subtotal before OREO costs 542 525 17 2 OREO costs 2 2 0 ----- ----- ----- --- $ 548 Total $ 544 $ 527 $17 ===== ===== ===== ===
Noninterest expense before OREO costs was $542 million in the first quarter of 1997, compared with $546 million in the prior quarter and $525 million for the same quarter in 1996. The $4 million decrease from the fourth quarter was partly due to a lower level of expenses from the Regional Consumer business, including additional cost savings from the BayBanks integration. In addition, there were declines in various non-employee cost categories including professional fees, advertising, travel and litigation costs. These declines were partially offset by an increase in employee costs which reflected, in part, higher incentive compensation, an increase in expenses from Brazil caused by branch expansion and increased levels of payroll taxes, and Millennium Project ("Year 2000") costs. Incentive compensation in the fourth quarter included the effect of a $6 million charge associated with a performance restricted stock plan for certain employees. Compared with first quarter of 1996, the growth in noninterest expense reflected ongoing expansion and investment spending in several of the Corporation's growth businesses, mainly Latin America and capital markets. Initiatives in these businesses included branch expansion and growth in fee- based businesses in Latin America and the start up of a Section 20 subsidiary and the hiring of sales/trading professionals in all capital markets businesses. Current year expense levels also included higher incentive compensation costs related to improved business unit performance. These increases were partially offset by cost savings achieved from the BayBanks integration. CREDIT PROFILE Loan and Lease Portfolio The segments of the lending portfolio are as follows: (in millions) 3-31-97 12-31-96 9-30-96 6-30-96 3-31-96 -------- -------- -------- -------- -------- United States Operations: Commercial, industrial and financial $ 14,203 $ 13,162 $ 13,828 $ 12,915 $ 12,677 Commercial real estate Construction 265 284 323 410 383 Other commercial real estate 3,129 3,240 3,228 3,326 3,242 Consumer-related loans: Residential mortgages 3,067 3,184 4,156 4,133 4,218 Home equity loans 2,908 2,878 2,842 2,775 2,644 Credit card 1,404 1,395 1,320 1,223 810 Other 4,708 5,503 5,349 5,218 5,200 Lease financing 1,766 1,816 1,778 1,627 1,565 Unearned income (275) (287) (272) (245) (240) -------- -------- -------- -------- -------- 31,175 31,175 32,552 31,382 30,499 -------- -------- -------- -------- -------- International Operations: Loans and lease financing, net of unearned income 9,844 9,886 9,501 9,271 8,769 -------- -------- -------- -------- -------- Total loans and lease financing $ 41,019 $ 41,061 $ 42,053 $ 40,653 $ 39,268 ======== ======== ======== ======== ========
Loans and leases were approximately $41 billion at March 31, 1997 and December 31, 1996. Growth in the domestic commercial, industrial and financial category, which was driven by increases in various corporate banking businesses, was offset by lower levels of domestic commercial real estate and consumer loans reflecting loan sales which occurred during the first quarter. Nonaccrual Loans and OREO Nonaccrual loans and OREO amounted to $445 million at March 31, 1997, compared with $452 million at December 31, 1996, and $449 million at March 31, 1996. Nonaccrual loans and OREO represented 1.1% of related assets at March 31, 1997, December 31, 1996 and March 31, 1996. The components of consolidated nonaccrual loans and OREO are as follows: (in millions) 3-31-97 12-31-96 9-30-96 6-30-96 3-31-96 -------- -------- -------- ------- ------- Domestic nonaccrual loans: Commercial, industrial and financial $ 72 $ 82 $ 114 $ 140 $ 93 Commercial real estate Construction 4 6 9 10 22 Other commercial real estate 47 67 84 86 102 Consumer-related loans Residential mortgages 65 57 60 45 46 Home equity loans 25 23 22 20 16 Credit card 23 17 5 2 0 Other 41 44 44 38 42 -------- -------- -------- -------- -------- 277 296 338 341 321 -------- -------- -------- -------- -------- International nonaccrual loans 119 106 106 57 63 -------- -------- -------- -------- -------- Total nonaccrual loans 396 402 444 398 384 OREO 49 50 52 62 65 -------- -------- -------- -------- -------- Total $ 445 $ 452 $ 496 $ 460 $ 449 ======== ======== ======== ======== ========
Provision and Reserve for Credit Losses The reserve for credit losses at March 31, 1997 was $864 million, or 2.11% of outstanding loans and leases, compared with $883 million, or 2.15% at December 31, 1996, and $884 million, or 2.25% at March 31, 1996. The reserve for credit losses was 218% of nonaccrual loans at March 31, 1997, 220% at December 31, 1996, and 230% at March 31, 1996. The provision for credit losses was $60 million in the first quarter of 1997 and the fourth quarter of 1996 compared with $57 million in the first quarter of 1996. Net credit losses were $79 million for the first quarter of 1997, compared with $75 million (including $15 million related to the transfer of commercial real estate loans into a held for sale account) for the prior quarter and $51 million for the comparable period last year. Net credit losses as a percent of average loans and leases on an annualized basis were .77% in the first quarter of 1997, compared with .71% for the fourth quarter of 1996 and .52% for the first quarter of 1996.
Net credit losses were as follows: Fourth - ------- First Quarter Quarter - ------- ------------ 1996 (in millions) 1997 1996 ---- ----- ----- Domestic $ 3 Commercial, industrial and financial $ 18 $ 3 16 Commercial real estate* 0 11 Consumer-related loans: 2 Residential mortgages 1 4 13 Credit card 19 3 3 Home equity loans 2 2 26 Other 35 23 ---- ----- ----- 63 75 46 12 International 4 5 ---- ----- ----- $ 75 Total $ 79 $ 51 ==== ===== =====
*The fourth quarter commercial real estate total includes $15 million associated with the transfer of loans into a held for sale category. THE CORPORATION BankBoston, with assets of $64.8 billion, was founded in 1784. BankBoston is engaged primarily in consumer banking in southern New England, providing financing and capital markets services to selected corporations regionally, nationally and internationally, and full-service banking in key Latin American markets. The Corporation and its subsidiaries operate through a network of 650 offices in the U.S. and through more than 100 offices in 23 countries in Latin America, Europe and Asia, the third largest overseas network of any U.S. bank. 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 - ------------ ------------------ 1996 1997 1996 - ------------ -------- ------- Assets Securities: $ 680 Held to maturity $ 692 $ 699 7,804 Available for sale 9,082 7,280 41,061 Loans and lease financing 41,019 39,268 (883) Reserve for credit losses (864) (884) ------- ------- ------- 40,178 Net loans and lease financing 40,155 38,384 4,729 Other earning assets 5,755 4,500 8,915 Cash and other nonearning assets 9,096 7,152 ------- ------- ------- $62,306 Total Assets $64,780 $58,015 ======= ======= ======= Liabilities and Stockholders' Equity $42,831 Deposits $42,307 $41,349 9,158 Funds borrowed 11,838 7,635 2,821 Notes payable 2,708 2,499 2,062 Other liabilities 2,566 1,846 Guaranteed preferred beneficial interest in corporation's junior 500 subordinated debt 500 0 ------- ------- ------- 57,372 Total Liabilities 59,919 53,329 ------- ------- ------- Stockholders' Equity 508 Preferred equity 508 508 4,426 Common equity 4,353 4,178 ------- ------- ------- 4,934 Total Stockholders' Equity 4,861 4,686 ------- ------- ------- Total Liabilities and Stockholders' $62,306 Equity $64,780 $58,015 ======= ======= =======
SELECTED AVERAGE BALANCES
Quarter Ended Quarters Ended - ------------- -------------- December 31 March 31 - ------------- ----------- 1996 1997 1996 - ------------- ------- ------- Assets $41,835 Loans and lease financing $41,732 $39,179 8,029 Securities 9,261 8,143 54,819 Total earning assets 56,641 52,172 61,056 Total assets 63,224 58,587 Liabilities and Stockholders' Equity 34,739 Interest bearing deposits 34,349 33,547 7,292 Noninterest bearing deposits 7,550 7,085 ------- ------- ------- 42,031 Total deposits 41,899 40,632 2,983 Notes payable 3,316 2,421 47,079 Total interest bearing liabilities 48,531 45,029 4,317 Common stockholders' equity 4,444 4,198 4,825 Total stockholders' equity 4,952 4,706
NUMBER OF EMPLOYEES
Mar 31 Dec 31 Mar 31 1997 1996 1996 -------- ------- -------- Full time equivalent employees 22,000 22,000 22,400
CONSOLIDATED STATEMENT OF INCOME
(dollars in millions, except per share amounts) Quarters Ended Quarters Ended December 31 March 31 -------------- ----------------- 1996 1997 1996 ---- -------- ------- $1,250.1 Interest income $1,275.0 $1,240.3 638.9 Interest expense 655.0 674.8 -------- -------- -------- 611.2 Net interest revenue 620.0 565.5 60.0 Provision for credit losses 60.0 56.9 -------- -------- -------- Net interest revenue after provision 551.2 for credit losses 560.0 508.6 -------- -------- -------- Noninterest income: 146.6 Financial service fees 137.5 51.6 65.0 Trust and agency fees 66.0 57.4 17.2 Trading profits and commissions 19.3 12.9 (.8) Securities portfolio gains, net 8.8 13.4 111.5 Other income 98.1 149.9 -------- -------- -------- 339.5 Total noninterest income 329.7 285.2 -------- -------- -------- Noninterest expense: 254.5 Salaries 257.7 240.8 44.4 Employee benefits 52.7 52.2 50.6 Occupancy expense 50.8 51.1 36.2 Equipment expense 35.6 34.3 160.4 Other expense 145.9 147.0 -------- -------- -------- 546.1 Subtotal 542.7 525.4 1.8 OREO costs 1.5 1.5 -------- -------- -------- 547.9 Total noninterest expense 544.2 526.9 -------- -------- -------- 342.8 Income before income taxes 345.5 266.9 141.3 Provision for income taxes 138.7 112.0 -------- -------- -------- $201.5 NET INCOME $ 206.8 $ 154.9 ======== ======== ======== NET INCOME PER COMMON SHARE: $1.26 Primary $ 1.29 $ .94 $1.24 Fully diluted $ 1.27 $ .93 $.44 DIVIDENDS PAID PER COMMON SHARE $ .44 $ .37 Average number of common shares, in thousands: 152,975 Primary 153,421 154,988 155,157 Fully diluted 155,592 156,844 $9.4 Preferred dividends $ 9.3 $ 9.3
OTHER DATA
(dollars in millions, except per share amounts) Quarter Ended Quarters Ended - ------------- -------------- December 31 March 31 ----------- ------------ 1996 1997 1996 ---- ----- ----- EARNINGS PER SHARE BEFORE SPECIAL ITEMS*: $1.26 Primary $ 1.29 $ 1.14 $1.24 Fully diluted $ 1.27 $ 1.13 RETURN ON AVERAGE TOTAL ASSETS (ANNUALIZED): 1.31% Net income 1.33% 1.06% 1.31% Net income before special items* 1.33% 1.28% RETURN ON AVERAGE COMMON EQUITY (ANNUALIZED): 17.71% Net income 18.02% 13.94% 17.71% Net income before special items* 18.02% 16.96% * First quarter 1996 amounts exclude items related to the sale of the mortgage banking subsidiary. CONSOLIDATED NET INTEREST REVENUE AND MARGIN: Net interest revenue, fully taxable $616.5 equivalent basis $ 625.0 $ 570.9 4.47% Net interest margin 4.47% 4.40% 4.65% DOMESTIC NET INTEREST MARGIN (ESTIMATED) 4.54% 4.53% 3.97% INTERNATIONAL NET INTEREST MARGIN (ESTIMATED) 4.30% 3.99% Dec. 31 Mar. 31 ------- ------------ 1996 1997 1996 ------- ----- ----- COMMON STOCKHOLDERS' EQUITY: $4,426 Common stockholders' equity $ 4,353 $ 4,178 153,173 Common shares outstanding, in thousands 151,807 153,935 Per common share: $28.89 Book value $ 28.67 $ 27.14 64.25 Market value 67.00 49.63 CAPITAL RATIOS/REGULATORY CAPITAL: 6.49% Tangible Common Equity ratio 6.13% 6.63% Risk-based capital ratios: Estimate 9.2% Tier 1 capital ratio (minimum required 4.00%) 8.9% 8.7% 13.6% Total capital ratio (minimum required 8.00%) 13.0% 12.9% 8.2% Leverage ratio 7.7% 7.4% $4,954 Tier 1 capital $ 4,838 $ 4,296 7,291 Total capital 7,045 6,402 53,583 Total risk-adjusted assets 54,093 49,476
RESERVE FOR CREDIT LOSSES
(dollars in millions) Quarter Ended Quarters Ended December 31 March 31 - ------------- ---------------------- 1996 1997 1996 ---- ------- ------ $896.7 Beginning balance $883.3 $889.2 60.0 Provision for credit losses 60.0 56.9 1.5 Reserve of acquired companies 0.0 0.0 0.0 Reserves of companies sold 0.0 (10.9) (98.1) Credit losses (96.7) (71.9) 23.2 Recoveries 17.4 20.8 -------- ------ ----- (74.9) Net credit losses (79.3) (51.1) -------- ------ ------ $883.3 Ending balance $864.0 $884.1 ======== ====== ====== 2.15% Reserve as a % of loans and leases 2.11% 2.25% ======== ====== ====== 220% Reserve as a % of nonaccrual loans 218% 230% ======== ====== ======
RENEGOTIATED LOANS
(in millions) 1996 1997 First Second Third Fourth First Qtr Qtr Qtr Qtr Qtr -------- -------- -------- -------- -------- Renegotiated loans $28 $13 $11 $8 $0 ======== ======== ======== ======== ========
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