-----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, Hb2rdq2Baf0QLAxgzwqipw9fOY1kKWK14MJfpi1BOjoAFEVakqGbK3+7w97/MLTm 5dCadVx0Aw62OQVZMJ/39g== 0000950109-95-000138.txt : 19950607 0000950109-95-000138.hdr.sgml : 19950607 ACCESSION NUMBER: 0000950109-95-000138 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19941231 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19950125 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: 95502883 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): January 19, 1995 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 January 19, 1995, Bank of Boston Corporation (the "Corporation") issued a press release announcing its earnings for the quarter and year ended December 31, 1994. The financial information that is included herewith as Exhibit 99 was included in the Corporation's press release and is incorporated herein by reference. Item 7. Financial Statements and Exhibits. (c) Exhibits. 99 Financial information included in the Corporation's Press Release dated January 19, 1995. 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: January 25, 1995 /s/ WILLIAM J. SHEA ---------------------------------- William J. Shea Vice Chairman, Chief Financial Officer and Treasurer EX-99 2 PRESS RELEASE BOSTON, January 19, 1995 -- Bank of Boston Corporation (NYSE: BKB) reported today fourth quarter net income of $121 million, or $1.01 per common share on a fully diluted basis. This compares with $116 million, or $.96 per share, in the third quarter of 1994 (before special revenue items, restructuring charges and conversion-related costs) and $103 million, or $.85 per share, in the fourth quarter of 1993. On this same basis, net income for the full year 1994 was $443 million, or $3.68 per share (before extraordinary items and the effect of accounting changes), compared with $332 million, or $2.73 per share for the full year 1993, an increase of 34%. Actual net income for the full year 1994 was $435 million, or $3.61 per share, on a fully diluted basis, compared with $299 million, or $2.44 per share for the full year 1993. The quarter comparisons were $121 million, or $1.01 per share in the fourth quarter of 1994, versus $124 million, or $1.04 per share in the third quarter and $103 million, or $.85 per share in the fourth quarter of 1993. BANK OF BOSTON PAGE 2 NET INTEREST REVENUE Net interest revenue, on a fully taxable equivalent basis, was $435 million for the fourth quarter of 1994, compared with $405 million in the prior quarter (excluding special revenue earned in Brazil) and $351 million for the same period in 1993. On this same basis, net interest margin was 4.39% for the fourth quarter of 1994, compared with 4.14% in the third quarter of 1994 and 3.86% in the fourth quarter of 1993. The increases in net interest revenue and margin from the third quarter principally reflected improvements in two areas. The majority of the net interest revenue improvement came from domestic operations, as rising interest rates have resulted in loan yields growing at a faster pace than retail deposit rates. In addition, the Corporation's modest asset sensitive interest rate risk position, as well as increases in the level of higher yielding consumer-related loans, contributed to the improvement in domestic net interest revenue. The remaining improvement came principally from Brazilian operations. During the third quarter of 1994, the Corporation recognized approximately $20 million ($11 million after-tax, or 10 cents per share) of net interest revenue from Brazilian operations that was earned during the transition period into Brazil's new economic program, and as such, was viewed as a special item. Excluding this special revenue, Brazilian net interest revenue and margin improved during the fourth quarter, reflecting successful funding strategies adopted by the Corporation. As Brazil's new economic program continued to evolve during the quarter, inflation remained at low levels and the Brazilian currency remained stable compared with the U.S. dollar. The growth in net interest revenue and margin from the fourth quarter of 1993 resulted from the same factors discussed above. Net interest revenue also benefited from higher Latin American loan levels and the acquisitions of BankWorcester and Pioneer. NONINTEREST INCOME Noninterest income is composed of the following:
Third Quarter Fourth Quarter Twelve Months - ------- ------------- ----------------- 1994 (in millions) 1994 1993 Change 1994 1993 Change ---- ---- ---- ------ ---- ---- ------ $ 104 Financial service fees $ 105 $ 95 $ 10 $ 396 $ 350 $ 46 51 Trust and agency fees 53 45 8 201 178 23 11 Trading profits and commissions 0 4 (4) 16 24 (8) 1 Securities portfolio gains, net 3 9 (6) 14 32 (18) 9 Mezzanine/venture capital profits, net 2 2 0 30 38 (8) 11 Foreign exchange trading profits 11 12 (1) 42 45 (3) 0 Gain on the sale of domestic factoring business 0 0 0 27 0 27 15 Other income 25 22 3 102 79 23 ----- ----- ----- --- ----- ----- ---- $202 Total $ 199 $ 189 $10 $ 828 $ 746 $ 82 ===== ===== ===== === ===== ===== ====
Trust and agency fees improved in all comparisons reflecting increased volumes and new business in the Latin American mutual fund and domestic stock transfer businesses. Trading account profits were lower in all comparisons stemming from lower profits from international securities trading. Other income in the fourth quarter included $6 million from the sale of mortgage servicing rights. Other income in the third quarter included $15 million of exchange-rate related profits stemming from the strengthening of Brazil's currency against the U.S. dollar subsequent to the implementation of that country's new economic program on July 1, 1994. Other income in the third quarter also included the effect of approximately $15 million of charges associated with certain investments, including investments in foreign equity subsidiaries and writedowns of domestic investments acquired in connection with loan restructurings. BANK OF BOSTON PAGE 3 FINANCIAL SERVICE FEES The components of financial service fees are as follows:
Third Quarter Fourth Quarter Twelve Months - ------- -------------- ---------------- 1994 (in millions) 1994 1993 Change 1994 1993 Change ---- ---- ---- ------ ---- ---- ------ $ 32 Deposit fees $ 33 $ 32 $ 1 $ 126 $ 122 $ 4 17 Letters of credit and acceptance fees 17 15 2 61 58 3 Mortgage servicing fees: 32 Fee income 35 27 8 125 105 20 (16) Amortization of mortgage servicing assets (18) (22) 4 (68) (99) 31 ---- ----- ----- --- ----- ----- ---- 16 Net mortgage servicing fees 17 5 12 57 6 51 15 Loan-related fees 16 13 3 60 45 15 1 Factoring fees 0 7 (7) 4 24 (20) 23 Other 22 23 (1) 88 95 (7) ----- ----- ----- --- ----- ----- ---- $ 104 Total $ 105 $ 95 $10 $ 396 $ 350 $ 46 ===== ===== ===== === ===== ===== ====
The increase in mortgage servicing fee income from prior year periods reflected ongoing growth in the Corporation's servicing portfolio, which rose to $38 billion at December 31, 1994 from $28 billion a year ago, as well as lower amortization of servicing rights resulting from a decline in mortgage refinancings. Loan-related fees continued to increase in the fourth quarter and showed significant improvement over prior year periods, reflecting growth in syndication activity. The decline in factoring fees from prior year periods was attributable to the 1994 sale of the Corporation's factoring business. Other financial service fees have declined from prior year periods stemming from the sale of the Corporation's freight management business. This was partially offset, however, by higher fees from the Corporation's Argentine credit card business. NONINTEREST EXPENSE The components of noninterest expense are as follows:
Third Quarter Fourth Quarter Twelve Months - ------- ------------ --------------- 1994 (in millions) 1994 1993 Change 1994 1993 Change ---- ---- ---- ------ ---- ---- ------ $ 207 Employee costs $ 213 $ 186 $ 27 $ 813 $ 771 $ 42 59 Occupancy & equipment 59 55 4 230 224 6 16 Professional fees 13 16 (3) 54 56 (2) 13 FDIC insurance premiums 13 15 (2) 51 62 (11) 72 Other 80 69 11 288 289 (1) ----- Noninterest expense, before restructuring, 367 conversion-related, and OREO costs 378 341 37 1,436 1,402 34 5 Restructuring and conversion-related costs 0 0 0 21 85 (64) 6 OREO costs 4 6 (2) 22 44 (22) ----- ----- ----- --- ------ ------ ---- $ 378 Total $ 382 $ 347 $35 $1,479 $1,531 $(52) ===== ===== ===== === ====== ====== ====
Noninterest expense, before restructuring, conversion-related and OREO costs, was $378 million in the fourth quarter of 1994, compared with $367 million in the prior quarter and $341 million for the same quarter in 1993. Using this expense base, the Corporation's operating ratio of expenses to revenue improved to 59.6% in the fourth quarter, compared with 60.4% in the third quarter and 63.1% in the fourth quarter last year. Compared with the third quarter, employee costs grew $6 million reflecting, in part, an increase in Latin America coupled with a full quarter effect of the Pioneer acquisition. The growth in Latin America was mainly the result of a government-mandated wage increase in Brazil, as well as continued expansion in Argentina. Nonemployee costs grew $5 million as increases in travel expenses and advertising costs, associated with the Corporation's marketing efforts, and higher goodwill amortization, more than offset a decline in legal and consulting costs. BANK OF BOSTON PAGE 4 Compared with the fourth quarter of 1993, noninterest expense, before restructuring, conversion-related and OREO costs, increased $37 million. This was mainly due to a $27 million increase in employee costs stemming from an increase in expenses from Latin America and the acquisitions of BankWorcester and Pioneer, which more than offset declines from a reduction in other domestic employees. Nonemployee costs grew $10 million, as increases from the BankWorcester and Pioneer acquisitions and higher levels of advertising, communications, equipment and travel expenses more than offset lower FDIC insurance premiums and legal fees. CREDIT PROFILE Loan and Lease Portfolio The segments of the lending portfolio are as follows:
(in millions) 12-31-94 9-30-94 6-30-94 3-31-94 12-31-93 -------- ------- ------- -------- -------- United States Operations: Commercial, industrial and financial $ 11,805 $ 11,987 $ 11,871 $ 12,064 $ 11,991 Construction 354 464 499 542 617 Other commercial real estate 3,141 3,110 3,084 2,851 3,123 Loans secured by 1-4 family residential properties 5,004 4,878 4,215 3,923 4,159 Loans to individuals 2,462 2,373 2,283 1,795 1,610 Lease financing 1,366 1,312 1,263 1,257 1,264 Unearned income (216) (199) (198) (202) (204) --------- -------- -------- -------- --------- 23,916 23,925 23,017 22,230 22,560 --------- -------- -------- -------- --------- International Operations: Loans and lease financing, net of unearned 7,089 6,956 6,949 6,324 6,222 income --------- -------- -------- -------- --------- Total loans and lease financing $ 31,005 $ 30,881 $ 29,966 $ 28,554 $ 28,782 ========= ======== ======== ======== =========
Domestic loans and leases were relatively unchanged from September 30, 1994 as increases in the consumer-related categories were offset by lower levels of commercial loans. The increase in consumer-related loans reflected the Corporation's emphasis in this area and included growth from Fidelity Acceptance Corporation, the Corporation's consumer finance subsidiary. During the quarter, the Corporation also announced an agreement to acquire Ganis Credit Corporation, a consumer finance company headquartered in Newport Beach, California. This transaction is expected to close during the first quarter of 1995. The decline in domestic commercial, industrial and financial loans reflected increased syndication activity and the Corporation's efforts to reduce low spread assets. The international portfolio increased by $133 million primarily due to ongoing growth in the Argentine portfolio. BANK OF BOSTON PAGE 5 Nonaccrual Loans and OREO Nonaccrual loans and OREO amounted to $441 million at December 31, 1994, compared with $470 million at September 30, 1994, and $659 million at December 31, 1993. Nonaccrual loans and OREO represented 1.4% of related assets at December 31, 1994, compared with 1.5% at September 30, 1994 and 2.3% at December 31, 1993. The components of consolidated nonaccrual loans and OREO are as follows:
(in millions) 12-31-94 9-30-94 6-30-94 3-31-94 12-31-93 -------- -------- -------- -------- --------- Domestic nonaccrual loans*: Commercial, industrial and financial $ 113 $ 119 $ 131 $ 112 $ 121 Construction 13 18 30 27 30 Other commercial real estate 106 119 160 134 231 Real estate secured by 1-4 family residential properties 44 35 30 17 64 Loans to individuals 24 15 9 13 10 Lease financing 0 0 0 0 1 --------- -------- -------- -------- --------- 300 306 360 303 457 --------- -------- -------- -------- --------- International nonaccrual loans 65 71 87 96 94 --------- -------- -------- -------- --------- Total nonaccrual loans 365 377 447 399 551 OREO 76 93 71 66 108 --------- -------- -------- -------- --------- Total $ 441 $ 470 $ 518 $ 465 $ 659 ========= ======== ======== ======== =========
* Excludes assets placed in the accelerated disposition portfolio. Accelerated Disposition Portfolio The Corporation's accelerated disposition portfolio exposure was $135 million at December 31, 1994, compared with $145 million at September 30, 1994. During the fourth quarter, the Corporation sold approximately $60 million of its September 30 portfolio, which was offset by the transfer of additional loans into the portfolio. The Corporation is actively engaged in a formal selling effort and expects to dispose of its December 31, 1994 portfolio during 1995. BANK OF BOSTON PAGE 6 Provision and Reserve for Credit Losses The reserve for credit losses at December 31, 1994 was $680 million, or 2.19% of outstanding loans and leases, compared with $677 million, or 2.19% at September 30, 1994, and $770 million, or 2.68% at December 31, 1993. The reserve for credit losses was 186% of nonaccrual loans at December 31, 1994, 179% at September 30, 1994, and 140% at December 31, 1993. The provision for credit losses was $35 million for the fourth quarter of 1994, compared with $25 million for the prior quarter and $10 million for the comparable period last year. For the full year 1994, the provision for credit losses was $130 million, compared with $70 million in the previous year. The 1994 provision includes the effect of transferring lower quality real estate exposure to the accelerated disposition portfolio. Net credit losses were $31 million for the fourth quarter of 1994, compared with $32 million for the prior quarter and $39 million for the comparable period last year. Net credit losses as a percent of average loans and leases on an annualized basis were .40% in 1994's fourth quarter, compared with .42% for the third quarter of 1994 and .54% for the fourth quarter of 1993. For the full year 1994, net credit losses, excluding those associated with the accelerated disposition portfolio, were $126 million compared with $223 million for the same period in 1993. Net credit losses were as follows:
Third ----- Quarter Fourth Quarter Twelve Months - ------- ------------------ ---------------- 1994 (in millions) 1994 1993 1994* 1993 ---- ---- ----- ----- ---- Domestic $ 6 Commercial, industrial and financial $ 4 $ 7 $ 14 $ 40 7 Commercial real estate 8 14 33 73 2 1-4 family residential 5 4 12 18 10 Loans to individuals 7 9 37 31 0 Lease financing 0 1 0 1 ----- ----- ----- ----- ----- 25 Subtotal 24 35 96 163 7 International 7 4 30 60 ----- ----- ----- ----- ----- $ 32 Total $ 31 $ 39 $ 126 $ 223 ===== ===== ===== ===== =====
* Excludes credit losses related to the transfer of assets to the accelerated disposition portfolio. THE CORPORATION Bank of Boston Corporation, New England's only global bank, with assets of $44.6 billion, is a superregional bank holding company with regional, national and global operations. Its major banking subsidiaries are The First National Bank of Boston, in Massachusetts, Bank of Boston Connecticut and Rhode Island Hospital Trust National Bank. At December 31, 1994, the Corporation also owned Casco Northern Bank, in Maine, and Bank of Vermont, however, it is expected that the sale of these banking subsidiaries will be consummated during the first quarter of 1995. The Corporation and its subsidiaries provide a broad range of financial services to individual, corporate, institutional and governmental customers, as well as to other banks in New England and in selected markets across the nation and around the world. The Corporation's common and preferred stocks are listed on the New York and Boston exchanges. BANK OF BOSTON PAGE 7 CONSOLIDATED BALANCE SHEET (dollars in millions)
September 30 December 31 ------------ --------------------- 1994 1994 1993 -------- --------- --------- Assets Securities: $ 2,022 Held to maturity $ 1,703 $ 1,569 2,214 Available for sale 2,997 1,438 30,881 Loans and lease financing 31,005 28,782 (677) Reserve for credit losses (680) (770) ------- ------- ------- 30,204 Net loans and lease financing 30,325 28,012 128 Accelerated disposition portfolio 118 0 4,190 Other earning assets 3,524 4,073 5,536 Cash and other nonearning assets 5,963 5,496 ------- ------- ------- $44,294 Total Assets $44,630 $40,588 ======= ======= ======= Liabilities and Stockholders' Equity $30,313 Deposits $31,356 $29,614 7,283 Funds borrowed 6,360 4,975 2,131 Notes payable 2,169 1,973 1,454 Other liabilities 1,603 1,114 ------- ------- ------- 41,181 Total Liabilities 41,488 37,676 ------- ------- ------- Stockholders' Equity 508 Preferred equity 508 508 2,605 Common equity 2,634 2,404 ------- ------- ------- 3,113 Total Stockholders' Equity 3,142 2,912 ------- ------- ------- $44,294 Total Liabilities and Stockholders' Equity $44,630 $40,588 ======= ======= =======
SELECTED AVERAGE BALANCES
Quarter Ended Quarters Ended Twelve Months Ended September 30 December 31 December 31 - ------------- ---------------- ----------------- 1994 1994 1993 1994 1993 -------- ------- ------- -------- ------- Assets $30,362 Loans and lease financing $31,076 $28,172 $29,790 $26,586 3,489 Securities 4,435 3,194 3,510 3,624 38,846 Total earning assets 39,349 36,129 38,145 34,299 43,925 Total assets 44,400 40,403 43,061 38,367 Liabilities and Stockholders' Equity 25,012 Interest bearing deposits 25,263 23,915 24,301 23,684 4,892 Noninterest bearing deposits 5,182 5,332 5,000 4,855 ------- ------- ------- ------- ------- 29,904 Total deposits 30,445 29,247 29,301 28,539 1,987 Notes payable 2,141 1,876 2,069 1,743 34,360 Total interest bearing liabilities 34,598 31,181 33,550 29,776 2,540 Common stockholders' equity 2,621 2,309 2,515 2,243 3,048 Total stockholders' equity 3,129 2,817 3,023 2,719
NUMBER OF EMPLOYEES
Dec 31 Sept 30 Dec 31 1994 1994 1993 --------- ---------- --------- Full time equivalent employees 18,355 18,625 18,644
BANK OF BOSTON PAGE 8 CONSOLIDATED STATEMENT OF INCOME (dollars in millions, except per share amounts)
Quarter Ended Quarters Ended Twelve Months Ended September December 31 December 31 - ------------- ------------------- ------------------- 30 -- 1994 1994 1993 1994 1993 ----- --------- -------- -------- -------- $1,083.5 Interest income $1,071.4 $ 721.9 $3,718.8 $2,738.7 659.6 Interest expense 638.0 372.6 2,146.2 1,393.8 -------- -------- -------- -------- -------- 423.9 Net interest revenue 433.4 349.3 1,572.6 1,344.9 25.0 Provision for credit losses 35.0 10.0 130.0 70.1 -------- -------- -------- -------- -------- Net interest revenue after provision 398.9 for credit losses 398.4 339.3 1,442.6 1,274.8 -------- -------- -------- -------- -------- Noninterest income: 104.3 Financial service fees 105.5 95.2 396.1 350.0 50.6 Trust and agency fees 53.1 45.5 201.6 177.6 10.9 Trading profits and commissions (.1) 3.9 15.8 23.6 1.3 Securities portfolio gains, net 2.5 8.8 13.6 32.2 35.1 Other income 37.6 35.6 200.9 162.1 -------- -------- -------- -------- -------- 202.2 Total noninterest income 198.6 189.0 828.0 745.5 -------- -------- -------- -------- -------- Noninterest expense: 168.1 Salaries 177.8 153.3 665.3 634.6 38.6 Employee benefits 35.1 32.7 147.6 136.2 35.2 Occupancy expense 34.4 31.3 134.6 127.8 24.2 Equipment expense 24.9 23.4 96.0 96.2 101.0 Other expense 105.6 100.3 392.0 407.2 -------- -------- -------- -------- -------- 367.1 Subtotal 377.8 341.0 1,435.5 1,402.0 Merger and restructuring charges and other related 5.0 conversion costs 0 0 21.4 85.0 6.2 OREO costs 4.1 5.6 22.3 43.8 -------- -------- -------- -------- -------- 378.3 Total noninterest expense 381.9 346.6 1,479.2 1,530.8 -------- -------- -------- -------- -------- Income before income taxes, extraordinary item and cumulative effect of changes in 222.8 accounting principles 215.1 181.7 791.3 489.5 98.8 Provision for income taxes 94.3 79.2 349.4 214.7 -------- -------- -------- -------- -------- Income before extraordinary item and cumulative 124.0 effect of changes in accounting principles 120.8 102.5 441.9 274.8 Extraordinary loss from early extinguishment of debt, 0 net of tax 0 0 (6.6) 0 Change in the method of accounting for purchased 0 mortgage servicing rights, net of related taxes 0 0 0 (53.0) 0 Change in the method of accounting for income taxes 0 0 0 77.2 -------- -------- -------- -------- -------- $ 124.0 NET INCOME $ 120.8 $ 102.5 $ 435.3 $ 299.0 ======== ======== ======== ======== ======== PER COMMON SHARE: Income before extraordinary item and cumulative effect of changes in accounting principles: $ 1.07 Primary $ 1.04 $ .88 $ 3.79 $ 2.28 $ 1.04 Fully diluted $ 1.01 $ .85 $ 3.67 $ 2.22 Net income: $ 1.07 Primary $ 1.04 $ .88 $ 3.73 $ 2.51 $ 1.04 Fully diluted $ 1.01 $ .85 $ 3.61 $ 2.44 $ .22 Dividends declared $ .27 $ .10 $ .93 $ .40 Average number of common shares, in thousands: 106,981 Primary 107,108 105,644 106,730 105,336 111,690 Fully diluted 111,831 110,308 111,427 110,258 $ 9.4 Preferred dividends $ 9.4 $ 9.4 $ 37.5 $ 34.7
BANK OF BOSTON PAGE 9 OTHER DATA (dollars in millions, except per share amounts)
Quarter Ended September 30 Quarters Ended Twelve Months Ended - ------------- December 31 December 31 ------------------- ------------------- 1994 1994 1993 1994 1993 ----- -------- -------- -------- -------- NET INCOME BEFORE SPECIAL REVENUE ITEMS, MERGER AND RESTRUCTURING CHARGES AND OTHER RELATED CONVERSION COSTS, EXTRAORDINARY ITEMS AND CUMULATIVE EFFECT OF ACCOUNTING CHANGES: $124.0 Net income $120.8 $102.5 $435.3 $299.0 (11.0) Special revenue items, net of tax 0 0 (11.0) 0 Merger and restructuring charges and other 3.0 related conversion costs, net of tax 0 0 12.2 57.0 0 Extraordinary item, net of tax 0 0 6.6 0 Cumulative effect of accounting changes, 0 net of tax 0 0 0 (24.2) ---- ------ ------ -------- -------- Net income before special revenue items, merger and restructuring charges and other related conversion costs, extraordinary items and cumulative effect of accounting $116.0 changes $120.8 $102.5 $443.1 $331.8 ====== ====== ====== ====== ====== EARNINGS PER SHARE BEFORE SPECIAL REVENUE ITEMS, MERGER AND RESTRUCTURING CHARGES AND OTHER RELATED CONVERSION COSTS, EXTRAORDINARY ITEMS AND CUMULATIVE EFFECT OF ACCOUNTING CHANGES: $ 1.00 Primary $ 1.04 $ .88 $3.80 $2.82 $ .96 Fully diluted $ 1.01 $ .85 $3.68 $2.73 RETURN ON AVERAGE TOTAL ASSETS (ANNUALIZED): 1.12% Net income 1.08% 1.01% 1.01% .78% Net income before special revenue items, merger and restructuring charges and other related conversion costs, extraordinary items and 1.05% cumulative effect of accounting changes 1.08% 1.01% 1.03% .86% RETURN ON AVERAGE COMMON EQUITY (ANNUALIZED): 17.90% Net income 16.86% 16.00% 15.82% 11.78% Net income before special revenue items, merger and restructuring charges and other related conversion costs, extraordinary items and 16.65% cumulative effect of accounting changes 16.86% 16.00% 16.13% 13.25% CONSOLIDATED NET INTEREST REVENUE AND MARGIN: Including special items: Net interest revenue, fully taxable $425.2 equivalent basis $435.4 $351.3 $1,578.9 $1,352.6 4.34% Net interest margin 4.39% 3.86% 4.14% 3.94% Excluding special items: Net interest revenue, fully taxable $405.2 equivalent basis $435.4 $351.3 $1,558.9 $1,352.6 4.14% Net interest margin 4.39% 3.86% 4.09% 3.94% 4.41% DOMESTIC NET INTEREST MARGIN (ESTIMATED) 4.61% 4.12% 4.34% 4.10%
BANK OF BOSTON PAGE 10
September 30 December 31 ------------ ------------------------- 1994 1994 1993 ----- ------ ------- COMMON STOCKHOLDERS' EQUITY: $ 2,605 Common stockholders' equity $ 2,634 $ 2,404 107,169 Common shares outstanding, in thousands 106,547 105,801 Per common share: $ 24.30 Book value $ 24.72 $ 22.71 26.63 Market value 25.88 23.00 REGULATORY CAPITAL: Risk-based capital ratios: Estimate 6.9% Tier 1 capital ratio (minimum required 4.00%) 7.0% 7.2% 11.9% Total capital ratio (minimum required 8.00%) 12.1% 12.4% 6.4% Leverage ratio 6.5% 6.8% $ 2,806 Tier 1 capital $ 2,876 $ 2,754 4,873 Total capital 4,985 4,725 40,854 Total risk-adjusted assets 41,317 38,179
RESERVE FOR CREDIT LOSSES (dollars in millions)
Quarter Ended Quarters Ended Twelve Months Ended September 30 December 31 December 31 - ------------- ------------------ ------------------- 1994 1994 1993 1994 1993 -------- -------- -------- --------- -------- $ 675.8 Beginning balance $676.5 $798.8 $ 770.3 $ 923.1 8.1 Reserves of acquired companies 0 0 24.7 0 25.0 Provision for credit losses 35.0 10.0 130.0 70.1 (51.8) Credit losses (50.0) (53.4) (193.8) (273.2) 19.4 Recoveries 18.7 14.9 68.0 50.3 ------- ------ ------ ------- ------- Net credit losses before losses related to accelerated (32.4) disposition portfolio (31.3) (38.5) (125.8) (222.9) Credit losses related to exposures transferred to 0 accelerated disposition portfolio: 0 0 (119.0) 0 ------- ------ ------ ------- ------- $ 676.5 Ending balance $680.2 $770.3 $ 680.2 $ 770.3 ======= ====== ====== ======= ======= 2.19% Reserve as a % of loans and leases 2.19% 2.68% 2.19% 2.68% ======= ====== ====== ======= ======= 179% Reserve as a % of nonaccrual loans 186% 140% 186% 140% ======= ====== ====== ======= =======
RENEGOTIATED LOANS
1993 1994 Fourth First Second Third Fourth Qtr Qtr Qtr Qtr Qtr -------- -------- -------- -------- -------- Renegotiated loans $225 $116 $81 $72 $68 ==== ==== === === ===
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