-----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, SsofL7Rx/s0FyZZEX08U7sq0ADdpZhOfZX47jXpvEmwoRJq3S4bXEwZFvp4pKr88 DzcFnlBo74JDV38+DzRHTQ== 0001047469-98-012952.txt : 19980401 0001047469-98-012952.hdr.sgml : 19980401 ACCESSION NUMBER: 0001047469-98-012952 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980330 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19980331 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: FLEET FINANCIAL GROUP INC CENTRAL INDEX KEY: 0000050341 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 050341324 STATE OF INCORPORATION: RI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-06366 FILM NUMBER: 98582312 BUSINESS ADDRESS: STREET 1: ONE FEDERAL STREET CITY: BOSTON STATE: MA ZIP: 02211 BUSINESS PHONE: 6173464000 MAIL ADDRESS: STREET 1: ONE FEDERAL STREET CITY: BOSTON STATE: MA ZIP: 02211 FORMER COMPANY: FORMER CONFORMED NAME: FLEET FINANCIAL GROUP INC DATE OF NAME CHANGE: 19880110 FORMER COMPANY: FORMER CONFORMED NAME: INDUSTRIAL NATIONAL CORP DATE OF NAME CHANGE: 19820512 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) MARCH 30, 1998 --------------------------------------------------------------- FLEET FINANCIAL GROUP, INC. --------------------------------------------------- (Exact name of registrant as specified in its charter) RHODE ISLAND ------------------------------------------------------ (STATE OR OTHER JURISDICTION OF INCORPORATION) 1-6366 05-0341324 -------------------------------------------------------------- (Commission File Number) (IRS Employer Identification No.) ONE FEDERAL STREET, BOSTON, MA 02211 -------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: 617-346-4000 ------------ ---------------------------------------------------------------- (Former name or former address, if changed since last report Item 5. OTHER EVENTS. As previously reported, Fleet Financial Group, Inc. ("Fleet") completed its acquisition of The Quick & Reilly Group, Inc. ("Quick & Reilly") on February 1, 1998. Fleet hereby files certain unaudited pro forma combined financial information for Fleet and Quick & Reilly for the period ended December 31, 1997. Item 7. FINANCIAL STATEMENTS AND OTHER EXHIBITS EXHIBIT NO. DESCRIPTION EXHIBIT 99 Unaudited Pro Forma Combined Financial Information for Fleet and Quick & Reilly for the period ended December 31, 1997 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed in its behalf by the undersigned hereunto duly authorized. FLEET FINANCIAL GROUP, INC. Registrant By /s/ Robert C. Lamb, Jr. -------------------------- Robert C. Lamb, Jr. Controller Chief Accounting Officer Dated: March 30, 1998 -2- EX-99 2 RESTATED FINANCIAL INFORMATION EXHIBIT 99 [LOGO]FLEET FLEET/QUICK & REILLY RESTATED FINANCIAL INFORMATION FEBRUARY 1998 THE ACCOMPANYING PRO FORMA UNAUDITED FINANCIAL INFORMATION HAS BEEN RESTATED TO REFLECT THE MERGER OF FLEET FINANCIAL GROUP, INC. AND THE QUICK & REILLY GROUP, INC. FOR ALL PERIODS PRESENTED. FLEET FINANCIAL GROUP (Unaudited) RESTATED SELECTED FINANCIAL INFORMATION REFLECTING THE QUICK & REILLY ACQUISITION
QUARTERLY SUMMARY OF RESULTS ------------------------------------------------------------- (Dollars in millions) 1997 ------------------------------------------------------------- 4Q 3Q 2Q 1Q Net Interest Income (FTE) $ 944 $ 944 $ 933 $ 918 Noninterest Income 624 619 600 613 ------------ ------------ ------------ ------------ Total Revenue (FTE) 1,568 1,563 1,533 1,531 Noninterest Expense 887 873 870 904 ------------ ------------ ------------ ------------ Net Income Before Provision, Net Gains, Taxes and Merger-Related Charges 681 690 663 627 Loan Loss Provision 90 85 83 65 Gains on Sales of Business Units, Net of Charges - - 20 - Provision for Taxes 224 243 244 219 Tax Equivalent Adjustment 11 10 9 9 ------------ ------------ ------------ ------------ Net Income Before Merger-Related Charges 356 352 347 334 Merger-Related Charges, net of tax 22 - - - ------------ ------------ ------------ ------------ Net Income $ 334 $ 352 $ 347 $ 334 ============ ============ ============ ============ OPERATING RATIOS (%) Return on Assets 1.51% 1.62% 1.62% 1.56% Return on Common Equity 17.98 19.99 20.14 19.17 Efficiency Ratio 56.5 55.9 56.7 59.1 COMMON SHARE DATA Basic Earnings Per Share $ 1.17 $ 1.23 $ 1.20 $ 1.13 Diluted Earnings Per Share 1.13 1.20 1.17 1.10 Cash Dividends Declared 0.49 0.45 0.45 0.45 Book Value 27.36 24.91 24.11 23.74 Market Capitalization (Diluted, in millions) 21,324 18,425 17,951 16,481 Shares Outstanding (Period End) 283,662,818 272,203,259 273,319,089 278,146,300 Diluted Shares Outstanding 283,851,298 281,029,031 283,814,698 288,513,429 BALANCE SHEET Total Assets $ 91,047 $ 88,l05 $ 87,573 $ 85,824 Loans and Leases 62,565 60,494 59,177 60,071 Common Stockholders' Equity 7,761 6,781 6,591 6,603 Total Stockholders' Equity 8,452 7,616 7,426 7,472 Nonperforming Assets 416 479 531 704 Net Charge-offs 90 93 102 90
FLEET FINANCIAL GROUP (Unaudited) YEAR TO DATE SUMMARY OF RESULTS (Dollars in millions)
------------ ------------ ------------ 1997 1996 1995 ------------ ------------ ------------ Net Interest Income (FTE) $ 3,739 $ 3,498 $ 3,118 Noninterest Income 2,456 2,333 1,939 ------------ ------------ ------------ Total Revenue (FTE) 6,195 5,831 5,057 Noninterest Expense 3,535 3,512 3,090 ------------ ------------ ------------ Net Income Before Provision, Net Gains, Taxes, Merger-Related and Special Charges 2,660 2,319 1,967 Loan Loss Provision 322 213 101 Gains on Sales of Business Units, Net of Charges 20 - - Provision for Taxes 930 849 713 Tax Equivalent Adjustment 39 36 45 ------------ ------------ ------------ Net Income Before Merger-Related and Special Charges 1,389 1,221 1,108 Merger-Related and Special Charges, net of tax 22 - 429 ------------ ------------ ------------ Net Income $ 1,367 $ 1,221 $ 679 ============ ============ ============ OPERATING RATIOS (%) Return on Assets 1.58% 1.40% 0.79% Return on Common Equity 19.30 17.68 9.93 Efficiency Ratio 57.0 60.2 61.1 COMMON SHARE DATA Basic Earnings Per Share $ 4.73 $ 4.04 $ 1.83 Diluted Earnings Per Share 4.59 3.96 1.70 Cash Dividends Declared 1.84 1.74 1.63 Book Value 27.36 24.08 22.03 Market Capitalization (Diluted, in millions) 21,358 14,464 11,654 Shares Outstanding (Period End) 283,662,818 283,855,262 284,550,869 Diluted Shares Outstanding 284,302,405 290,012,987 285,995,539 BALANCE SHEET Total Assets $ 91,047 $ 89,650 $ 87,955 Loans and Leases 62,565 59,861 52,566 Common Stockholders' Equity 7,761 6,837 6,268 Total Stockholders' Equity 8,452 7,790 6,667 Nonperforming Assets 416 723 499 Net Charge-offs 376 370 302
2 FLEET FINANCIAL GROUP (Unaudited)
ASSET SUMMARY ----------------------------------------------------- (Dollars in millions) 1997 ----------------------------------------------------- 4Q 3Q 2Q 1Q END OF PERIOD BALANCES Earning Assets $77,906 $75,283 $74,637 $73,773 Total Assets 91,047 88,105 87,573 85,824 Loans and Leases 62,565 60,494 59,177 60,071 Loans and Leases, excluding divested businesses 62,565 60,494 59,177 57,917 Securities 9,362 8,770 8,704 8,557 Mortgage Servicing Rights 1,768 1,800 1,841 1,861 Goodwill and Other Intangibles 2,196 1,763 1,669 1,709 Reserve for Credit Losses (1,432) (1,432) (1,443) (1,462) Total Deposits 63,735 62,907 63,229 64,139 Short-Term Borrowings 7,531 7,105 6,429 4,168 Long-Term Debt 4,500 4,459 4,550 4,617 Common Stockholders' Equity 7,761 6,781 6,591 6,603 Total Stockholders' Equity 8,452 7,616 7,426 7,472 ASSET SUMMARY ----------------------------------------------------- (Dollars in millions) 1997 ----------------------------------------------------- 4Q 3Q 2Q 1Q AVERAGE BALANCES Earning Assets $75,869 $74,619 $73,763 $74,307 Earning Assets, excluding divested businesses 75,869 72,775 71,480 71,955 Total Assets 87,516 86,130 85,976 87,018 Loans and Leases 61,274 59,317 60,017 59,687 Loans and Leases, excluding divested businesses 61,274 59,317 57,950 57,529 Securities 9,095 8,690 8,327 8,580 Mortgage Servicing Rights 1,795 1,846 1,887 1,769 Goodwill and Other Intangibles 1,858 1,730 1,702 1,733 Total Deposits 62,652 62,495 63,777 64,691 Short-Term Borrowings 6,049 5,895 4,999 4,198 Long-Term Debt 4,341 4,487 4,611 5,003 Common Stockholders' Equity 7,086 6,678 6,592 6,704 Total Stockholders' Equity 7,799 7,513 7,440 7,605
3 FLEET FINANCIAL GROUP (Unaudited)
LOANS BY TYPE- PERIOD END ----------------------------------------------------- (Dollars in millions) 1997 ----------------------------------------------------- 4Q 3Q 2Q 1Q Commercial and Industrial $32,000 $30,869 $30,585 $30,081 Commercial Real Estate: Construction 890 867 1,046 1,023 Interim/Permanent 4,787 4,848 5,059 5,126 ------- ------- ------- ------- Total Commercial Real Estate 5,677 5,715 6,105 6,149 Lease Financing 3,376 3,064 2,858 2,602 ------- ------- ------- ------- Total Commercial Loans 41,053 39,648 39,548 38,832 Consumer: Residential Real Estate 10,019 9,377 8,168 7,92l Home Equity 4,851 4,948 5,070 4,997 Credit Card 2,742 2,683 2,823 3,049 Student Loan 1,029 1,198 1,174 1,301 Other Consumer 2,871 2,640 2,394 3,971 ------- ------- ------- ------- Total Consumer 21,512 20,846 19,629 21,239 ------- ------- ------- ------- Total Loans 62,565 60,494 59,177 60,071 Divested Businesses -- -- -- (2,154) ------- ------- ------- ------- Loans Excluding Divested Businesses $62,565 $60,494 $59,177 $57,917 ======= ======= ======= ======= LOANS BY TYPE- AVERAGE ----------------------------------------------------- (Dollars in millions) 1997 ----------------------------------------------------- 4Q 3Q 2Q 1Q Commercial and Industrial $31,143 $30,353 $30,151 $29,228 Commercial Real Estate: Construction 867 939 991 1,085 Interim/Permanent 4,798 4,914 5,080 5,247 ------- ------- ------- ------- Total Commercial Real Estate 5,665 5,853 6,071 6,332 Lease Financing 3,124 2,907 2,665 2,586 ------- ------- ------- ------- Total Commercial Loans 39,932 39,113 38,887 38,146 Consumer: Residential Real Estate 9,760 8,679 7,993 8,002 Home Equity 4,903 5,026 5,067 5,037 Credit Card 2,670 2,734 2,934 3,145 Student Loan 1,169 1,171 1,233 1,314 Other Consumer 2,840 2,594 3,903 4,043 ------- ------- ------- ------- Total Consumer 21,342 20,204 21,130 21,541 ------- ------- ------- ------- Total Loans 61,274 59,317 60,017 59,687 Divested Businesses -- -- (2,067) (2,158) ------- ------- ------- ------- Loans Excluding Divested Businesses $61,274 $59,317 $57,950 $57,529 ======= ======= ======= =======
4 FLEET FINANCIAL GROUP (Unaudited)
NONINTEREST INCOME - QUARTERLY ----------------------------------------------------- (Dollars in millions) 1997 ----------------------------------------------------- 4Q 3Q 2Q 1Q Service Charges, Fees and Commissions $157 $159 $159 $157 Brokerage Revenue: Fee and Commission Revenue 80 78 66 73 Trading Revenue 30 30 24 17 Investment Services Revenue 108 104 103 103 Mortgage Banking Revenue, net 67 66 91 104 Student Loan Servicing Fees 24 24 26 26 Venture Capital Revenue 15 29 10 18 Foreign Exchange/Interest Rate Products 14 12 11 12 Securities Gains 12 4 4 13 Other Noninterest Income 117 113 106 90 ---- ---- ---- ---- Total Noninterest Income $624 $619 $600 $613 ==== ==== ==== ==== NONINTEREST INCOME- YEAR TO DATE ------ ------ ------ (Dollars in millions) 1997 1996 1995 ------ ------ ------ Service Charges, Fees and Commissions $ 633 $ 537 $ 442 Investment Services Revenue 418 372 322 Brokerage Revenue: Fee and Commission Revenue 299 270 227 Trading Revenue 100 59 53 Mortgage Banking Revenue, net 327 372 321 Student Loan Servicing Fees 101 98 72 Venture Capital Revenue 71 106 36 Foreign Exchange/Interest Rate Products 49 34 20 Securities Gains 33 43 32 Other Noninterest Income 425 442 414 ------ ------ ------ Total Noninterest Income $2,456 $2,333 $1,939 ====== ====== ======
5 FLEET FINANCIAL GROUP (Unaudited)
NONINTEREST EXPENSE - QUARTERLY ----------------------------------------------------- (Dollars in millions) 1997 ----------------------------------------------------- 4Q 3Q 2Q 1Q Employee Compensation and Benefits $422 $428 $443 $459 Equipment 81 81 76 79 Occupancy 74 74 70 77 Intangible Asset Amortization 44 43 41 41 Legal and Other Professional 31 22 35 29 Marketing 31 34 22 22 Other Noninterest Expense 204 191 183 197 ---- ---- ---- ---- Total Noninterest Expense $887 $873 $870 $904 ==== ==== ==== ==== NONINTEREST EXPENSE-YEAR TO DATE ------ ------ ------ (Dollars in millions) 1997 1996 1995 ------ ------ ------ Employee Compensation and Benefits $1,752 $1,735 $1,554 Equipment 317 300 234 Occupancy 294 293 257 Intangible Asset Amortization 169 140 108 Legal and Other Professional 118 136 106 Marketing 109 106 100 Other Noninterest Expense 776 802 731 ------ ------ ------ Total Noninterest Expense $3,535 $3,512 $3,090 ====== ====== ======
6 FLEET FINANCIAL GROUP (Unaudited)
COMPUTATION OF EQUIVALENT SHARES AND EARNINGS PER COMMON SHARE (Dollars in millions, except per share data) BASIC --------------------------------------------------------- Three Months Ended --------------------------------------------------------- 12/31/97 9/30/97 6/30/97 3/31/97 ------------ ------------ ------------ ------------ Earnings per share: Net income $ 334 $ 352 $ 347 $ 334 Less: Preferred stock dividends (13) (16) (16) (17) ------------ ------------ ------------ ------------ Adjusted net income $ 321 $ 336 $ 331 $ 317 ============ ============ ============ ============ Total average shares 275,047,227 272,415,656 275,715,284 280,835,256 ============ ============ ============ ============ EPS on net income $ 1.17 $ 1.23 $ 1.20 $ 1.13 ============ ============ ============ ============ DILUTED --------------------------------------------------------- Three Months Ended --------------------------------------------------------- 12/31/97 9/30/97 6/30/97 3/31/97 ------------ ------------ ------------ ------------ Equivalent shares: Average shares outstanding 275,047,227 272,415,656 275,715,284 280,835,256 Additional shares due to: Stock options 3,101,775 3,024,352 2,782,689 2,634,636 Warrants 5,702,296 5,589,023 5,316,725 5,043,537 ------------ ------------ ------------ ------------ Total equivalent shares 283,851,298 281,029,031 283,814,698 288,513,429 ============ ============ ============ ============ Earnings per share: Net income $ 334 $ 352 $ 347 $ 334 Less: Preferred stock dividends (13) (16) (16) (17) ------------ ------------ ------------ ------------ Adjusted net income $ 321 $ 336 $ 331 $ 317 ============ ============ ============ ============ Total equivalent shares 283,851,298 281,029,031 283,814,698 288,513,429 ============ ============ ============ ============ EPS on net income $ 1.13 $ 1.20 $ 1.17 $ 1.10 ============ ============ ============ ============ COMPUTATION OF EQUIVALENT SHARES AND EARNINGS PER COMMON SHARE (Dollars in millions, except per share data) BASIC DILUTED ------------------------------------------ ------------------------------------------ FOR THE YEAR ENDED FOR THE YEAR ENDED ------------------------------------------ ------------------------------------------ 12/31/97 12/31/96 12/31/95 12/31/97 12/31/96 12/31/95 ------------ ------------ ------------ ------------ ------------ ------------ Equivalent shares: Average shares outstanding 275,978,241 284,448,131 265,459,028 275,978,241 284,448,131 265,459,028 Additional shares due to: Stock options - - - 2,897,825 1,599,088 952,901 Warrants - - - 5,426,339 3,965,768 3,549,616 Dual convertible preferred stock - - - - - 16,033,994 ------------ ------------ ------------ ------------ ------------ ------------ Total equivalent shares 275,978,241 284,448,131 265,459,028 284,302,405 290,012,987 285,995,539 ============ ============ ============ ============ ============ ============ Earnings per share: Net Income $ 1,367 $ 1,221 $ 679 $ 1,367 $ 1,221 $ 679 Less: Preferred stock dividends (62) (72) (37) (62) (72) (37) Exchange of dual convertible preferred stock - - (157) - - (157) ------------ ------------ ------------ ------------ ------------ ------------ Adjusted net income $ 1,305 $ 1,149 $ 485 $ 1,305 $ 1,149 $ 485 ============ ============ ============ ============ ============ ============ Total equivalent shares 275,978,241 284,448,131 265,459,028 284,302,405 290,012,987 285,995,539 ============ ============ ============ ============ ============ ============ EPS on net income $ 4.73 $ 4.04 $ 1.83 $ 4.59 $ 3.96 $ 1.70 ============ ============ ============ ============ ============ ============
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