-----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, OFWXQoQI7/kGfxdCFchRRw9y5nsvn9nRUSdD69wqA3p2BNE3N0RDuL5R0GudOkCa Y5QaKa9z0DebEsWTB95NDw== 0000950132-98-000523.txt : 19980630 0000950132-98-000523.hdr.sgml : 19980630 ACCESSION NUMBER: 0000950132-98-000523 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980629 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MELLON BANK CORP CENTRAL INDEX KEY: 0000064782 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 251233834 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 001-07410 FILM NUMBER: 98656329 BUSINESS ADDRESS: STREET 1: ONE MELLON BANK CTR STREET 2: 500 GRANT ST CITY: PITTSBURGH STATE: PA ZIP: 15258-0001 BUSINESS PHONE: 4122345000 FORMER COMPANY: FORMER CONFORMED NAME: MELLON NATIONAL CORP DATE OF NAME CHANGE: 19841014 11-K 1 ANNUAL REPORT PURSUANT TO SECTION 15(D) - -------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 11-K [X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 1997 COMMISSION FILE NO. 1-7410 MELLON 401(k) RETIREMENT SAVINGS PLAN One Mellon Bank Center 500 Grant Street Pittsburgh, PA 15258-0001 (Full title of the Plan and the address of the Plan) MELLON BANK CORPORATION One Mellon Bank Center 500 Grant Street Pittsburgh, PA 15258-0001 (Name of issuer of the securities held pursuant to the Plan and the address of its principal executive office) MELLON 401(k) RETIREMENT SAVINGS PLAN Financial Statements and Schedules December 31, 1997 and 1996 (With Independent Auditors' Report Thereon) MELLON 401(k) RETIREMENT SAVINGS PLAN Index to Financial Statements and Schedules December 31, 1997 and 1996 Table of Contents
Page ------ Independent Auditors' Report 1 Financial Statements: Statements of Net Assets Available for Plan Benefits 2 Statements of Changes in Net Assets Available for Plan Benefits 3 Notes to Financial Statements 4 - 19 Schedule 1 Item 27(a) - Assets Held for Investment Purposes (at the end of the plan year) 20 Schedule 2 Item 27(d) - Reportable Transactions - Single Transactions 21 Schedule 3 Item 27(d) - Reportable Transactions - Series Transactions 22
Note: All other schedules required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974, as amended (ERISA), have been omitted because there is no information to report. Independent Auditors' Report ---------------------------- Corporate Benefits Committee Mellon Bank Corporation: We have audited the accompanying statements of net assets available for plan benefits of the Mellon 401(k) Retirement Savings Plan (the Plan) as of December 31, 1997 and 1996, and the related statements of changes in net assets available for plan benefits for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for plan benefits of the Mellon 401(k) Retirement Savings Plan as of December 31, 1997 and 1996, and the changes in net assets available for plan benefits for the years then ended in conformity with generally accepted accounting principles. Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The schedules included as Schedules 1, 2 and 3 are presented for purposes of additional analysis and are not a required part of the basic financial statements but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974, as amended. The schedules have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. June 22, 1998 MELLON 401(k) RETIREMENT SAVINGS PLAN Statements of Net Assets Available for Plan Benefits December 31, 1997 and 1996
Assets 1997 1996 ------ ---- ---- Noninterest-bearing cash $ 90,107 -- Investments, at fair value (notes 3 and 6): Collective trust funds 8,838,915 1,022,915 Registered investment companies 432,410,685 297,163,102 Mellon Bank Corporation common stock 405,201,071 129,996,811 Loans to participants 20,080,747 13,540,195 ------------ ----------- Total investments 866,531,418 441,723,023 Contributions receivable: Employer contributions made pursuant to employee salary reduction agreements 1,540,227 1,322,430 ------------ ----------- Total contributions receivable 1,540,227 1,322,430 Interest and dividends receivable -- 7,597 Pending investment sales and other receivables 3,536,318 2,185,514 Amount due from plan merger (note 8) -- 202,461,917 ------------ ----------- Total assets 871,698,070 647,700,481 Liabilities ----------- Pending investment purchases and other payables 1,897,211 1,931,246 ------------ ----------- Net assets available for plan benefits (note 7) $869,800,859 645,769,235 ============ ===========
See accompanying notes to financial statements. 2 MELLON 401(k) RETIREMENT SAVINGS PLAN Statements of Changes in Net Assets Available for Plan Benefits Years Ended December 31, 1997 and 1996
1997 1996 ---- ---- Contributions: Employer matching contributions $ 11,491,255 11,000,167 Employer contributions made pursuant to employee salary reduction agreements 34,791,524 30,329,959 Rollover contributions 5,862,668 1,965,970 ------------ ----------- Total contributions 52,145,447 43,296,096 Investment income: Dividends from Mellon Bank Corporation common stock 9,772,505 4,216,819 Net realized gain and unrealized appreciation on Mellon Bank Corporation common stock 155,690,813 31,331,515 Collective trust funds income 276,628 2,221,970 Net realized gain and unrealized appreciation on collective trust funds -- 9,348,974 Registered investment companies income 11,352,535 5,815,318 Net realized gain and unrealized appreciation on registered investment companies 64,306,114 22,073,687 Interest income on loans to participants 1,540,595 1,060,216 ------------ ----------- Total investment income 242,939,190 76,068,499 Participants' withdrawals (71,053,013) (44,854,115) ------------ ----------- Net increase 224,031,624 74,510,480 Net transfers to the Plan (note 8) -- 202,461,917 Net assets available for plan benefits (note 7): Beginning of year 645,769,235 368,796,838 ------------ ----------- End of year $869,800,859 645,769,235 ============ ===========
See accompanying notes to financial statements. 3 MELLON 401(k) RETIREMENT SAVINGS PLAN Notes to Financial Statements December 31, 1997 and 1996 (1) Description of the Plan ----------------------- The following description of the Mellon 401(k) Retirement Savings Plan (the Plan) provides only general information. Participants should refer to the Plan document for a more complete description of the Plan's provisions. General ------- The Plan is a defined contribution plan established to cover the employees of substantially all subsidiaries of Mellon Bank Corporation (the Corporation) who have one year of service. It is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA). The Plan is administered by the Corporate Benefits Committee (the Committee), whose members consist of the heads of the Human Resources, Legal and Finance Departments of the Corporation and one member who is appointed by the Chief Executive Officer of the Corporation. The Committee is the Named Fiduciary and the Plan Administrator. Administrative costs arising under the Plan, other than fees charged by the mutual funds, are paid by the Corporation. The members of the Committee receive no remuneration from the Plan with respect to their service in such capacity. A separate committee, the Benefits Investment Committee, whose members consist of the Chief Financial Officer of the Corporation and five other members appointed by the Chief Executive Officer of the Corporation, has been assigned certain fiduciary duties with respect to Plan investments. Mellon Bank, N.A. is the Trustee. Participants in the Plan have the option of investing their contributions through salary deferrals to one or more of the following mutual funds (note 3): Dreyfus Institutional Prime Money Market Fund, Dreyfus Bond Market Index Fund, Dreyfus Basic S&P 500 Stock Index Fund, Dreyfus Disciplined Stock Fund, Dreyfus Premier Small Company Stock Fund, Warburg- Pincus International Equity Fund, Dreyfus LifeTime Portfolios, Inc. - Income Portfolio, Dreyfus LifeTime Portfolios, Inc. - Growth and Income Portfolio and Dreyfus LifeTime Portfolios, Inc. - Growth Portfolio; or the Dreyfus- Certus Stable Value Fund, which is a collective trust fund. (Continued) 4 MELLON 401(k) RETIREMENT SAVINGS PLAN Notes to Financial Statements, Continued The Loan Fund is comprised of loans to participants. The Employer Stock Fund is maintained for investment of employer matching contributions and employer discretionary contributions, if any. Participant account balances include salary reduction, employer matching and employer discretionary contributions. In the event the Plan is terminated, such account balances shall be distributed to the participants. Contributions ------------- An eligible employee of the Corporation may become a participant in the Plan following completion of one year of service. Employees hired prior to February 1, 1995, were eligible to participate in the Plan on the date of employment. Salary reduction contributions may be made at a rate of one to sixteen percent of the employee's base compensation, less other pre-tax benefits, but may not exceed the annual dollar limit prescribed by the tax laws ($9,500 in 1997 and 1996). Employees may change the rate of contribution or discontinue contributions at any time. Participants may rollover amounts representing distributions from other qualified retirement plans. Salary reduction contributions and employer matching contributions are subject to the nondiscrimination requirements imposed under Internal Revenue Code (IRC) sections 401(k) and 401(m). In addition, special rules imposed by IRC section 415 limit the amount of contributions that may be allocated to the accounts of each participant (see note 5). Semimonthly, the Corporation makes a matching contribution to the Plan in an amount equal to fifty percent of the first 6% of each participant's salary reduction contribution, provided that the matching contribution shall not exceed $3,000 per year for any individual participant. The Corporation's matching contributions are made in the Corporation's common stock based upon fair market value. (Continued) 5 MELLON 401(k) RETIREMENT SAVINGS PLAN Notes to Financial Statements, Continued The Corporation is permitted to make discretionary contributions, as determined and authorized by the Board of Directors. Discretionary contributions would be allocated to each eligible participant's accounts and invested in the Employer Stock Fund. There were no discretionary contributions during the years ended December 31, 1997 and 1996. Vesting ------- Participants are fully vested in Mellon matching contributions upon entering the Plan. Balances of participants who were in the former Dreyfus Profit-Sharing Plan as of September 1, 1996, were merged into the 401(k) Retirement Savings Plan (note 8). Those participant balances are subject to the vesting schedule in the former Dreyfus Profit-Sharing Plan. Under that schedule, participants will be fully vested after completing five years of service. While former Dreyfus Profit-Sharing Plan participants may not be vested in their balances under that plan, they are fully and immediately vested in Mellon matching contributions attributable to 401(k) deferrals. Forfeitures ----------- Forfeitures are applicable only to the former Dreyfus Profit- Sharing Plan participants who have not completed 5 years of service prior to their termination of employment. If the participant is not fully vested at the employment termination date, the non-vested benefit is forfeited. Forfeitures are used as a reduction of required employer contributions to the Plan. For the year ended December 31, 1997, forfeited non-vested accounts totaled $2,098,952 and that amount was used to reduce employer contributions. Distributions ------------- Upon termination of employment, participants may elect to receive a distribution of their vested account balances. Payment must begin not later than the year in which the participant attains age seventy and one-half. The Plan also permits distributions in the event of the participant's permanent disability. (Continued) 6 MELLON 401(k) RETIREMENT SAVINGS PLAN Notes to Financial Statements, Continued Loans to Participants --------------------- Loans are made available to all requesting participants in amounts up to the least of (a) $50,000, (b) one-half of the participant's account balance or (c) the value of the participant's account balance less the current value of their Employer Stock Fund. Such loans are repaid in periodic installments through payroll deduction. Loan repayments of both principal and interest are invested by the Trustee among the available investment funds in the same proportions as the participant's salary reduction contributions are invested. The loan interest rate is one percentage point above the prime rate published in the Wall Street Journal on the first business day of each month. (2) Summary of Significant Accounting Policies ------------------------------------------ Basis of Financial Statements ----------------------------- The accompanying financial statements have been prepared on the accrual basis. Amounts payable to participants terminating participation in the Plan are included as a component of net assets available for plan benefits (note 7). The preparation of the financial statements in conformity with generally accepted accounting principles requires the Plan Administrator to make estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. Actual results could differ from those estimates. Investments ----------- Investments in common stock traded on securities exchanges and investment companies are valued at their last reported sales price on the last business day of the Plan year. Investments in collective trust funds are valued at the net asset value of the respective funds on the last day of the Plan year. Purchases and sales of securities are reflected on a trade-date accounting basis. In accordance with the policy of stating investments at fair value, changes in unrealized appreciation or depreciation are reflected in the statements of changes in net assets available for plan benefits. Dividend income is recorded on the ex-dividend date. Income from other investments is recorded as earned on an accrual basis. (Continued) 7 MELLON 401(k) RETIREMENT SAVINGS PLAN Notes to Financial Statements, Continued (3) Investment Programs ------------------- Mellon Bank, N.A., a subsidiary of the Corporation, acts as Trustee under a declaration of trust providing for the establishment, management, investment and reinvestment of the Plan's assets. The funds listed below were the investment options for salary reduction contributions as of December 31, 1997. Any of these funds may be invested in short-term debt obligations of any nature or held in cash pending investment or distribution. The assets that comprise these funds may be invested in registered investment companies or collective trust funds. Registered investment companies: ------------------------------- (a) Dreyfus Institutional Prime Money Market Fund --------------------------------------------- The objective of this fund is to invest in high-grade, short-term obligations paying a fixed rate of return and commonly referred to as money market securities. (b) Dreyfus Bond Market Index Fund ------------------------------ The objective of this fund is to match the performance of the Lehman Brothers Government/Corporate Bond Index by investing 80% of the Fund's assets in U.S. government obligations and fixed-rate investment grade securities that are included in that benchmark index. The remaining 20% can be invested in government securities and corporate securities. (c) Dreyfus Basic S&P 500 Stock Index Fund -------------------------------------- The objective of this fund is to match the performance of the Standard & Poor's 500 Composite Stock Price Index (S&P 500), which is a leading measure of the value of the nation's largest corporations. The fund invests in all 500 stocks in the S&P 500 in proportion to their weighting in the Index. (Continued) 8 MELLON 401(k) RETIREMENT SAVINGS PLAN Notes to Financial Statements, Continued (d) Dreyfus Disciplined Stock Fund ------------------------------ The objective of this fund is to outperform the S&P 500 on a consistent basis by investing primarily in equity securities. The fund typically invests at least 65% of its assets in equity securities and no more than 20% of its assets in money market securities. (e) Dreyfus Premier Small Company Stock Fund ---------------------------------------- The objective of this fund is to consistently outperform the Russell 2500 Stock Index, while maintaining a similar level of risk. This fund primarily invests in small capitalization stocks that generally range from $100 million to $1.5 billion in market capitalization. (f) Warburg-Pincus International Equity Fund ---------------------------------------- The objective of this fund is to create long-term capital appreciation by investing in international equity securities. The fund is designed to take advantage of the growth potential of foreign markets. (g) Dreyfus LifeTime Portfolios, Inc. --------------------------------- The following three investment portfolios are provided: Income Portfolio ---------------- The objective of this fund is to maximize income by investing in common stock, fixed-income securities and short-term money market instruments. Growth and Income Portfolio --------------------------- The objective of this fund is to seek a combination of growth and income by investing in both equity securities and fixed-income securities, with up to 15% of its assets in international securities. (Continued) 9 MELLON 401(k) RETIREMENT SAVINGS PLAN Notes to Financial Statements, Continued Growth Portfolio ---------------- The objective of this fund is to create capital appreciation by investing in both equity securities and fixed-income securities, with up to 25% of its assets invested in international securities. Collective trust fund: --------------------- Dreyfus-Certus Stable Value Fund -------------------------------- The objective of this fund is to create current income and maintain stability of principal by investing in investment contracts with life insurance companies or commercial banks that meet established credit standards, debt securities backed by the U.S. government or its agencies and short-term money market instruments. There can be no assurance that the stated objective of any of the funds can be achieved. All salary reduction contributions are invested at the direction of the participant in one or more of the established funds or in any common, collective or investment company fund selected by the Benefit Investment Committee having a stated investment objective consistent with the objectives of any of the investment funds under the Plan. However, no salary reduction contributions may be invested in the Employer Stock Fund. Employer matching and discretionary contributions, if any, are invested in the Corporation's common stock and held in the Employer Stock Fund. The Loan Fund represents a separate fund that is administered by the Trustee in connection with loans to participants of the Plan. Participants may borrow from their accounts a portion of their account balance. The amount of each loan is transferred from one or more of the investment funds in the same proportion that the participant's interest in such funds bears to the participant's aggregate interest in all such investment funds. (Continued) 10 MELLON 401(k) RETIREMENT SAVINGS PLAN Notes to Financial Statements, Continued (4) Federal Income Taxes -------------------- The Internal Revenue Service (IRS) issued its latest determination on May 11, 1993, which stated that the Plan is qualified under section 401(a) of the Internal Revenue Code (the Code), and the related trust is exempt from tax under section 501(a) of the Code. The Plan and its underlying trust have since been amended to conform with current tax law changes. In the opinion of the Plan Administrator, the Plan and the related trust have operated in accordance with the terms of the Plan and in conformity with the applicable provisions of the Code. Accordingly, the accompanying financial statements do not include a provision for federal income taxes. (Continued) 11 MELLON 401(k) RETIREMENT SAVINGS PLAN Notes to Financial Statements, Continued (5) Fund Information ----------------
1997 - ---------------------------------------------------------------------------------------------------------------------- Fund Information - ---------------------------------------------------------------------------------------------------------------------- Participant Directed - ---------------------------------------------------------------------------------------------------------------------- Dreyfus Dreyfus- Dreyfus Premier Small Loan Certus Stable Disciplined Company Total Fund Value Fund Stock Fund Fund ------------ ------------ ----------- ------------ ------------- Assets ------- Noninterest-bearing cash $ 90,107 - 90,077 - - Investments, at fair value: Collective trust funds 8,838,915 - 8,838,915 - - Registered investment companies 432,410,685 - - 70,352,997 24,627,744 Mellon Bank Corporation common stock 405,201,071 - - - - Loans to participants 20,080,747 20,080,747 - - - ------------ ---------- --------- ---------- ---------- Total investments 866,531,418 20,080,747 8,838,915 70,352,997 24,627,744 Contributions receivable: Employer contributions made pursuant to employee salary reduction agreements 1,540,227 - 13,158 285,866 183,187 ------------ ---------- --------- ---------- ---------- Total contributions receivable 1,540,227 - 13,158 285,866 183,187 Pending investment sales and other receivables 3,536,318 485,470 - - - Net interfund transfer receivable/payable - (434,479) (652,897) 540,220 79,329 ------------ ---------- --------- ---------- ---------- Total assets 871,698,070 20,131,738 8,289,253 71,179,083 24,890,260 Liabilities ----------- Pending investment purchases and other payables (1,897,211) - - (129,854) (174,277) ------------ ---------- --------- ---------- ---------- Net assets available for plan benefits $869,800,859 20,131,738 8,289,253 71,049,229 24,715,983 ============ ========== ========= ========== ========== Warburg-Pincus Dreyfus International Institutional Equity Prime Money Fund Market Fund -------------- ------------- Assets ------- Noninterest-bearing cash - 30 Investments, at fair value: Collective trust funds - - Registered investment companies 11,610,446 74,761,733 Mellon Bank Corporation common stock - - Loans to participants - - ---------- ---------- Total investments 11,610,446 74,761,733 Contributions receivable: Employer contributions made pursuant to employee salary reduction agreements 106,092 146,404 ---------- ---------- Total contributions receivable 106,092 146,404 Pending investment sales and other receivables 154,614 309,217 Net interfund transfer receivable/payable 196,313 487,226 ---------- ---------- Total assets 12,067,465 75,704,610 Liabilities ----------- Pending investment purchases and other payables (280,827) (422,656) ---------- ---------- Net assets available for plan benefits 11,786,638 75,281,954 ========== ==========
- --------------------------------------------------------------------------------- - --------------------------------------------------------------------------------- Non-participant directed --------------- Dreyfus Dreyfus Dreyfus Dreyfus LifeTime S&P 500 Dreyfus LifeTime LifeTime Growth and Stock Bond Market Employer Growth Fund Income Fund Income Fund Index Fund Index Fund Stock Fund - ------------- ----------- ----------- ---------- ----------- --------------- - - - - - - - - - - - - 14,543,874 2,835,997 73,141,376 138,894,722 21,641,796 - - - - - - 405,201,071 - - - - - - ---------- --------- ---------- ----------- ---------- ----------- 14,543,874 2,835,997 73,141,376 138,894,722 21,641,796 405,201,071 110,769 18,396 128,735 292,692 46,024 208,904 ---------- --------- ---------- ----------- ---------- ----------- 110,769 18,396 128,735 292,692 46,024 208,904 502,075 2,669 - 65,800 35,437 1,981,036 (459,516) 60,509 689,740 274,818 129,051 (910,314) ---------- --------- ---------- ----------- ---------- ----------- 14,697,202 2,917,571 73,959,851 139,528,032 21,852,308 406,480,697 (108,680) (61,301) (663,460) (55,846) (272) (38) ---------- --------- ---------- ----------- ---------- ----------- 14,588,522 2,856,270 73,296,391 139,472,186 21,852,036 406,480,659 ========== ========= ========== =========== ========== ===========
(Continued) 12 MELLON 401(k) RETIREMENT SAVINGS PLAN Notes to Financial Statements, Continued
1996 - ---------------------------------------------------------------------------------------------------------------------- Fund Information - ---------------------------------------------------------------------------------------------------------------------- Participant Directed - ---------------------------------------------------------------------------------------------------------------------- Dreyfus Dreyfus- Dreyfus Premier Small Loan Certus Stable Disciplined Company Total Fund Value Fund Stock Fund Fund ------------ ------------ ----------- ------------ ------------- Assets ------- Investments, at fair value: Collective trust funds $ 1,022,915 716 1,017,794 - - Registered investment companies 297,163,102 - - 26,185,643 12,994,210 Mellon Bank Corporation common stock 129,996,811 - - - - Loans to participants 13,540,195 13,540,195 - - - ------------ ---------- --------- ---------- ---------- Total investments 441,723,023 13,540,911 1,017,794 26,185,643 12,994,210 Contributions receivable: Employer contributions made pursuant to employee salary reduction agreements 1,322,430 - 9,750 253,167 184,423 ------------ ---------- --------- ---------- ---------- Total contributions receivable 1,322,430 - 9,750 253,167 184,423 Interest and dividends receivable 7,597 - - - - Pending investment sales and other receivables 2,185,514 - - - - Net interfund transfer receivable/payable - - 46,662 315,312 198,508 Amount due from plan merger 202,461,917 - - 18,019,641 - ------------ ---------- --------- ---------- ---------- Total assets 647,700,481 13,540,911 1,074,206 44,773,763 13,377,141 Liabilities ----------- Pending investment purchases and other payables 1,931,246 - - 545,596 372,197 ------------ ---------- --------- ---------- ---------- Net assets available for plan benefits $645,769,235 13,540,911 1,074,206 44,228,167 13,004,944 ============ ========== ========= ========== ========== Warburg-Pincus Dreyfus International Institutional Equity Prime Money Fund Market Fund -------------- ------------- Assets ------ Investments, at fair value: Collective trust funds - 396 Registered investment companies 8,349,944 52,947,521 Mellon Bank Corporation common stock - - Loans to participants - - --------- ---------- Total investments 8,349,944 52,947,917 Contributions receivable: Employer contributions made pursuant to employee salary reduction agreements 117,800 202,210 --------- ---------- Total contributions receivable 117,800 202,210 Interest and dividends receivable - - Pending investment sales and other receivables - - Net interfund transfer receivable/payable 197,131 353,014 Amount due from plan merger - 35,589,558 --------- ---------- Total assets 8,664,875 89,092,699 Liabilities ----------- Pending investment purchases and other payables 305,331 380,116 --------- ---------- Net assets available for plan benefits 8,359,544 88,712,583 ========= ==========
- --------------------------------------------------------------------------------- - --------------------------------------------------------------------------------- Non-participant directed - ----------------------------------------------------------------- --------------- Dreyfus Dreyfus Dreyfus Dreyfus LifeTime S&P 500 Dreyfus LifeTime LifeTime Growth and Stock Bond Market Employer Growth Fund Income Fund Income Fund Index Fund Index Fund Stock Fund - ------------- ----------- ----------- ----------- ----------- -------------- - - - 781 2,484 744 6,873,014 1,334,467 68,560,039 102,814,045 17,104,219 - - - - - - 129,996,811 - - - - - - --------- --------- ---------- ----------- ---------- ----------- 6,873,014 1,334,467 68,560,039 102,814,826 17,106,703 129,997,555 103,041 18,866 126,250 259,494 47,429 - --------- --------- ---------- ----------- ---------- ----------- 103,041 18,866 126,250 259,494 47,429 - - - - - - 7,597 - - 249,957 - - 1,935,557 25,395 72,306 78,529 206,004 139,913 (1,632,774) - - - 3,457,296 2,180,604 143,214,818 --------- --------- ---------- ----------- ---------- ----------- 7,001,450 1,425,639 69,014,775 106,737,620 19,474,649 273,522,753 96,323 91,405 - 66,506 73,772 - --------- --------- ---------- ----------- ---------- ----------- 6,905,127 1,334,234 69,014,775 106,671,114 19,400,877 273,522,753 ========= ========= ========== =========== ========== ===========
(Continued) 13 MELLON 401(k) RETIREMENT SAVINGS PLAN Notes to Financial Statements, Continued
1997 - -------------------------------------------------------------------------------------------------------------------------------- Fund Information - -------------------------------------------------------------------------------------------------------------------------------- Participant Directed - -------------------------------------------------------------------------------------------------------------------------------- Dreyfus Dreyfus- Dreyfus Premier Small Loan Certus Stable Disciplined Company Total Fund Value Fund Stock Fund Fund ------------ ---------- ----------- ------------ ------------- Contributions: Employer matching contributions $ 11,491,255 - - - - Employer contributions made pursuant to employee salary reduction agreements 34,791,524 - 217,319 7,186,207 4,834,839 Rollover contributions 5,862,668 - 98,048 1,129,182 598,645 ------------ ---------- --------- ---------- --------- Total contributions 52,145,447 - 315,367 8,315,389 5,433,484 Investment income: Dividends from Mellon Bank Corporation common stock 9,772,505 - - - - Net realized gain and unrealized appreciation on Mellon Bank Corporation common stock 155,690,813 - - - - Collective trust funds income 276,628 - 276,628 - - Registered investment companies income 11,352,535 - - 451,836 - Net realized gain (loss) and unrealized appreciation (depreciation) on registered investment companies 64,306,114 - - 14,597,664 3,566,408 Interest income on loans to participants 1,540,595 1,540,595 - - - ------------ ---------- --------- ---------- ---------- Total investment income (loss) 242,939,190 1,540,595 276,628 15,049,500 3,566,408 Participants' withdrawals (71,053,013) (1,266,425) (11,157) (2,793,698) (661,761) Net interfund transfers - 6,316,657 6,634,209 6,249,871 3,372,908 ------------ ---------- --------- ---------- ---------- Net increase (decrease) 224,031,624 6,590,827 7,215,047 26,821,062 11,711,039 Net assets available for plan benefits: Beginning of year 645,769,235 13,540,911 1,074,206 44,228,167 13,004,944 ------------ ---------- --------- ---------- ---------- End of year $869,800,859 20,131,738 8,289,253 71,049,229 24,715,983 ============ ========== ========= ========== ========== Warburg-Pincus Dreyfus International Institutional Equity Prime Money Fund Market Fund -------------- ------------- Contributions: Employer matching contributions - - Employer contributions made pursuant to employee salary reduction agreements 3,071,111 4,399,948 Rollover contributions 345,899 793,873 ---------- ----------- Total contributions 3,417,010 5,193,821 Investment income: Dividends from Mellon Bank Corporation common stock - - Net realized gain and unrealized appreciation on Mellon Bank Corporation common stock - - Collective trust funds income - - Registered investment companies income 169,708 4,613,227 Net realized gain (loss) and unrealized appreciation (depreciation) on registered investment companies (977,202) - Interest income on loans to participants - - ---------- ----------- Total investment income (loss) (807,494) 4,613,227 Participants' withdrawals (392,683) (21,163,334) Net interfund transfers 1,210,261 (2,074,343) ---------- ----------- Net increase (decrease) 3,427,094 (13,430,629) Net assets available for plan benefits: Beginning of year 8,359,544 88,712,583 ---------- ----------- End of year 11,786,638 75,281,954 ========== ===========
- --------------------------------------------------------------------------------- - --------------------------------------------------------------------------------- Non-participant directed - --------------------------------------------------------------- --------------- Dreyfus Dreyfus Dreyfus Dreyfus LifeTime S&P 500 Dreyfus LifeTime LifeTime Growth and Stock Bond Market Employer Growth Fund Income Fund Income Fund Index Fund Index Fund Stock Fund - ------------- ----------- ----------- ---------- ----------- --------------- - - - - - 11,491,255 2,773,765 462,988 3,201,411 7,458,007 1,185,929 - 627,007 281,057 525,587 1,238,338 225,032 - ---------- --------- ---------- ----------- ---------- ----------- 3,400,772 744,045 3,726,998 8,696,345 1,410,961 11,491,255 - - - - - 9,772,505 - - - - - 155,690,813 - - - - - - 399,575 142,206 2,458,287 1,941,475 1,176,221 - 2,053,436 142,928 10,737,775 33,374,450 810,655 - - - - - - - ---------- --------- ---------- ----------- ---------- ----------- 2,453,011 285,134 13,196,062 35,315,925 1,986,876 165,463,318 (383,443) (88,096) (3,104,542) (5,926,691) (1,150,525) (34,110,658) 2,213,055 580,953 (9,536,902) (5,284,507) 203,847 (9,886,009) ---------- --------- ---------- ----------- ---------- ----------- 7,683,395 1,522,036 4,281,616 32,801,072 2,451,159 132,957,906 6,905,127 1,334,234 69,014,775 106,671,114 19,400,877 273,522,753 ---------- --------- ---------- ----------- ---------- ----------- 14,588,522 2,856,270 73,296,391 139,472,186 21,852,036 406,480,659 ========== ========= ========== =========== ========== ===========
(Continued) 14 MELLON 401(k) RETIREMENT SAVINGS PLAN Notes to Financial Statements, Continued
1996 - -------------------------------------------------------------------------------------------------------------- Fund Information - -------------------------------------------------------------------------------------------------------------- Participant Directed - -------------------------------------------------------------------------------------------------------------- Income Bond Stock Total Fund Fund Fund ----- ------ ------ ----- Contributions: Employer matching contributions $ 11,000,167 - - - Employer contributions made pursuant to employee salary reduction agreements 30,329,959 1,026,680 520,726 3,142,652 Rollover contributions 1,965,970 - - - ------------ ----------- ----------- ------------ Total contributions 43,296,096 1,026,680 520,726 3,142,652 Investment income: Dividends from Mellon Bank Corporation common stock 4,216,819 - - - Net realized gain and unrealized appreciation on Mellon Bank Corporation common stock 31,331,515 - - - Collective trust funds income 2,221,970 1,193,523 5,413 31,666 Net realized gain (loss) and unrealized appreciation (depreciation) on collective trust funds 9,348,974 - (558,328) 6,527,418 Registered investment companies income 5,815,318 - - - Net realized gain (loss) and unrealized appreciation (depreciation) on registered investment companies 22,073,687 - - - Interest income on loans to participants 1,060,216 - - - ------------ ----------- ----------- ------------ Total investment income (loss) 76,068,499 1,193,523 (552,915) 6,559,084 Participants' withdrawals (44,854,115) (3,679,374) (1,133,482) (4,395,682) Net interfund transfers - (59,133,953) (17,869,591) (105,168,856) ------------ ----------- ----------- ------------ Net increase (decrease) 74,510,480 (60,593,124) (19,035,262) (99,862,802) Net transfers to the Plan 202,461,917 - - - Net assets available for plan benefits: Beginning of year 368,796,838 60,593,124 19,035,262 99,862,802 ------------ ----------- ----------- ------------ End of year $645,769,235 - - - ============ =========== =========== ============ Dreyfus Dreyfus- Dreyfus Premier Small Balanced Loan Certus Stable Disciplined Company Fund Fund Value Fund Stock Fund Fund ----------- ---------- ------------- ----------- ------------- Contributions: Employer matching contributions - - - - - Employer contributions made pursuant to employee salary reduction agreements 2,300,339 - 167,138 4,252,868 3,109,640 Rollover contributions - - 28,814 513,079 287,712 ---------- ---------- --------- ---------- ---------- Total contributions 2,300,339 - 195,952 4,765,947 3,397,352 Investment income: Dividends from Mellon Bank Corporation common stock - - - - - Net realized gain and unrealized appreciation on Mellon Bank Corporation common stock - - - - - Collective trust funds income 970,913 - 19,741 - - Net realized gain (loss) and unrealized appreciation (depreciation) on collective trust funds 3,379,884 - - - - Registered investment companies income - - - 151,848 1,960 Net realized gain (loss) and unrealized appreciation (depreciation) on registered investment companies - - - 2,586,997 959,086 Interest income on loans to participants - 1,060,216 - - - ----------- ---------- --------- ---------- ---------- Total investment income (loss) 4,350,797 1,060,216 19,741 2,738,845 961,046 Participants' withdrawals (3,427,410) (1,137,888) (19,754) (62,651) (97,104) Net interfund transfers (87,712,667) 4,562,232 878,267 18,766,385 8,743,650 ----------- ---------- --------- ---------- ---------- Net increase (decrease) (84,488,941) 4,484,560 1,074,206 26,208,526 13,004,944 Net transfers to the Plan - - - 18,019,641 - Net assets available for plan benefits: Beginning of year 84,488,941 9,056,351 - - - ----------- ---------- --------- ---------- ---------- End of year - 13,540,911 1,074,206 44,228,167 13,004,944 =========== ========== ========= ========== ==========
- ----------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------- Non-participant directed - -------------------------------------------------------------------------------------- ---------------- Warburg-Pincus Dreyfus Dreyfus Dreyfus Dreyfus Dreyfus Dreyfus International Institutional LifeTime LifeTime LifeTime S&P 500 Bond Equity Prime Money Growth Income Growth and Stock Market Employer Fund Market Fund Fund Fund Income Fund Index Fund Index Fund Stock Fund - ---------------- ------------- --------- --------- ----------- ---------- ---------- -------------- - - - - - - - 11,000,167 1,932,668 4,386,854 1,634,317 302,317 2,136,226 4,578,177 839,357 - 168,847 242,515 157,906 57,569 128,658 304,522 76,348 - --------- ---------- --------- --------- ---------- ----------- ---------- ----------- 2,101,515 4,629,369 1,792,223 359,886 2,264,884 4,882,699 915,705 11,000,167 - - - - - - - 4,216,819 - - - - - - - 31,331,515 - - - - - - - 714 - - - - - - - - 170,631 1,807,781 112,600 46,162 1,450,765 1,424,896 648,675 - 81,379 - 449,072 (5,483) 4,824,237 12,852,261 326,138 - - - - - - - - - --------- ---------- --------- --------- ---------- ----------- ---------- ----------- 252,010 1,807,781 561,672 40,679 6,275,002 14,277,157 974,813 35,549,048 (59,716) (9,234,833) (25,057) (70,162) (4,664,003) (5,418,380) (1,206,716) (10,221,903) 6,065,735 55,920,708 4,576,289 1,003,831 65,138,892 89,472,342 16,536,471 (1,779,735) --------- ---------- --------- --------- ---------- ----------- ---------- ----------- 8,359,544 53,123,025 6,905,127 1,334,234 69,014,775 103,213,818 17,220,273 34,547,577 - 35,589,558 - - - 3,457,296 2,180,604 143,214,818 - - - - - - - 95,760,358 --------- ---------- --------- --------- ---------- ----------- ---------- ----------- 8,359,544 88,712,583 6,905,127 1,334,234 69,014,775 106,671,114 19,400,877 273,522,753 ========= ========== ========= ========= ========== =========== ========== ===========
(Continued) 15 MELLON 401(k) RETIREMENT SAVINGS PLAN Notes to Financial Statements, Continued (6) Investments ----------- Investments of each fund as of December 31, 1997, were as follows:
Market value Number of ------------ shares Per Fund or units Cost unit Total - ------ ---------- ---- ---- ----- Dreyfus-Certus Stable Value Fund 8,838,915 $ 8,838,915 $ 1.00 $ 8,838,915 ------------ ------------ Total collective trust funds 8,838,915 8,838,915 Dreyfus Institutional Prime Money Market Fund 74,761,733 74,761,733 1.00 74,761,733* Dreyfus Bond Market Index Fund 2,164,180 20,907,205 10.00 21,641,796 Dreyfus Basic S&P 500 Stock Index Fund 6,752,296 100,728,607 20.57 138,894,722* Dreyfus Disciplined Stock Fund 2,260,700 62,178,834 31.12 70,352,997* Dreyfus Premier Small Company Stock Fund 1,361,461 22,029,283 18.09 24,627,744 Warburg-Pincus International Equity Fund 682,566 14,081,307 17.01 11,610,446 Dreyfus LifeTime Income Fund 220,186 2,957,594 12.88 2,835,997 Dreyfus LifeTime Growth and Income Fund 4,655,721 69,971,450 15.71 73,141,376* Dreyfus LifeTime Growth Fund 935,899 15,876,429 15.54 14,543,874 ------------ ------------ Total registered investment companies 383,492,442 432,410,685 Employer Stock Fund: Mellon Bank Corporation common stock 6,683,729@ 106,027,085 60.63@ 405,201,071* Loans to participants 20,080,747 20,080,747 1.00 20,080,747 ------------ ------------ Total investments $518,439,189 $866,531,418 ============ ============
* Investments greater than 5% of net assets available for plan benefits at the end of the plan year. @ In April 1997, the Corporation announced a two-for-one split of the Corporation's common stock payable in June 1997. (Continued) 16 MELLON 401(k) RETIREMENT SAVINGS PLAN Notes to Financial Statements, Continued Investments of each fund as of December 31, 1996, were as follows:
Market value Number of ------------ shares Per Fund or units Cost unit Total - ------ ---------- ---- ---- ----- EB Temporary Investment Fund 5,121 $ 5,121 $ 1.00 $ 5,121 Dreyfus-Certus Stable Value Fund 1,017,794 1,017,794 1.00 1,017,794 ------------ ------------ Total collective trust funds 1,022,915 1,022,915 Dreyfus Institutional Prime Money Market Fund 52,947,521 52,947,521 1.00 52,947,521* Dreyfus Bond Market Index Fund 1,750,688 16,792,844 9.77 17,104,219 Dreyfus Institutional S&P 500 Stock Index Fund 6,462,228 92,057,808 15.91 102,814,045* Dreyfus Disciplined Stock Fund 991,880 25,253,348 26.40 26,185,643* Dreyfus Premier Small Company Stock Fund 833,496 12,595,922 15.59 12,994,210 Warburg-Pincus International Equity Fund 400,669 8,403,489 20.84 8,349,944 Dreyfus LifeTime Income Fund 104,418 1,374,769 12.78 1,334,467 Dreyfus LifeTime Growth and Income Fund 4,420,376 65,421,301 15.51 68,560,039* Dreyfus LifeTime Growth Fund 422,695 6,865,883 16.26 6,873,014 ------------ ------------ Total registered investment companies 281,712,885 297,163,102 Employer Stock Fund: Mellon Bank Corporation common stock 1,830,941@ 58,974,441 71.00@ 129,996,811* Loans to participants N/A 13,540,195 N/A 13,540,195 ------------ ------------ Total investments $355,250,436 $441,723,023 ============ ============
* Investments greater than 5% of net assets available for plan benefits at the end of the plan year. @ In April 1997, the Corporation announced a two-for-one split of the Corporation's common stock payable in June 1997. The number of shares and market value per share have not been adjusted to reflect this split. (Continued) 17 MELLON 401(k) RETIREMENT SAVINGS PLAN Notes to Financial Statements, Continued (7) Reconciliation of Financial Statements and Form 5500 ---------------------------------------------------- The following is a reconciliation of net assets available for benefits per the financial statements to the Form 5500:
December 31, ------------ 1997 1996 ---- ---- Net assets available for benefits per the financial statements $869,800,859 645,769,235 Amounts allocated to withdrawing participants (3,835,188) (1,814,167) ------------ ----------- Net assets available for benefits per the Form 5500 $865,965,671 643,955,068 ============ ===========
The following is a reconciliation of benefits paid to participants per the financial statements to the Form 5500:
Year ended December 31, 1997 ---- Benefits paid to participants per the financial statements $71,053,013 Add: Amounts allocated to withdrawing participants at December 31, 1997 3,835,188 Less: Amounts allocated to withdrawing participants at December 31, 1996 (1,814,167) ----------- Benefits paid to participants per the Form 5500 $73,074,034 ===========
Amounts allocated to withdrawing participants are recorded on the Form 5500 for benefit claims that have been processed and approved for payment prior to December 31, 1997, but not yet paid as of that date. (Continued) 18 MELLON 401(k) RETIREMENT SAVINGS PLAN Notes to Financial Statements, Continued (8) Plan Merger ----------- On August 20, 1996, the Board of Directors of the Corporation resolved that The Dreyfus Corporation Retirement Profit-Sharing Plan (the Profit-Sharing Plan), a plan maintained by a subsidiary of the Corporation, be merged with and into the Mellon 401(k) Retirement Savings Plan with the Plan being the surviving plan. The plan merger was effective September 1, 1996, but the merger of the plan assets did not occur until 1997. Based on this resolution, the net assets held by the Profit-Sharing Plan as of December 31, 1996, in the amount of $202,461,917, were due to the Plan. The merger of the Plan assets was completed in June of 1997. On May 20, 1997, the Board of Directors of the Corporation resolved that The Boston Company Employee Savings Plan (the Savings Plan), a plan maintained by a subsidiary of the Corporation, be merged with and into the Mellon 401(k) Retirement Savings Plan with the Plan being the surviving plan. The plan merger was effective January 1, 1998, and the merger of the plan assets occurred in March of 1998. As of December 31, 1997, the net assets in the Savings Plan approximated $34,500,000. 19 Schedule 1 ---------- MELLON 401(k) RETIREMENT SAVINGS PLAN EIN: 25-1233834 Plan Number: 001 Item 27(a) - Assets Held for Investment Purposes (at the end of the plan year) December 31, 1997
- ------------------------------------------------------------------------------------------------------------------------ Column A Column B Column C Column D Column E - -------- -------- -------- -------- -------- Identity of issue, borrower, Current lessor or similar party Description of investment Cost Value ----------------------- ------------------------- ---- ----- Collective trust funds ---------------------- * Mellon Bank Corporation Dreyfus-Certus Stable Value Fund $ 8,838,915 8,838,915 Registered investment companies ------------------------------- * Mellon Bank Corporation Dreyfus Institutional Prime Money Market Fund 74,761,733 74,761,733 * Mellon Bank Corporation Dreyfus Bond Market Index Fund 20,907,205 21,641,796 * Mellon Bank Corporation Dreyfus Basic S&P 500 Index Fund 100,728,607 138,894,722 * Mellon Bank Corporation Dreyfus Disciplined Stock Fund 62,178,834 70,352,997 * Mellon Bank Corporation Dreyfus Premier Small Company Stock Fund 22,029,283 24,627,744 * Mellon Bank Corporation Warburg-Pincus International Equity Fund 14,081,307 11,610,446 * Mellon Bank Corporation Dreyfus LifeTime Income Fund 2,957,594 2,835,997 * Mellon Bank Corporation Dreyfus LifeTime Growth & Income Portfolio 69,971,450 73,141,376 * Mellon Bank Corporation Dreyfus LifeTime Growth Fund 15,876,429 14,543,874 ------------ ----------- Total registered investment companies 383,492,442 432,410,685 Common stock ------------ * Mellon Bank Corporation Mellon Bank Corporation Common Stock 106,027,085 405,201,071 ------------ ----------- Total common stock 106,027,085 405,201,071 Loans ----- * Participant loans Participant loans with various rates of interest from 9.25% to 13.20% and various maturity dates through 2006 0(1) 20,080,747 ------------ ----------- Total loans 0 20,080,747 ------------ ----------- Total investments $498,358,442 866,531,418 ============ ===========
* Party-in-interest (1) The cost of participant loans is $-0- as indicated in the instructions to the Form 5500 - Item 27(a). 20 Schedule 2 ---------- MELLON 401(k) RETIREMENT SAVINGS PLAN EIN: 25-1233834 Plan Number: 001 Item 27(d) - Reportable Transactions - Single Transactions Year Ended December 31, 1997
- ----------------------------------------------------------------------------------------------------------------------- Single Transactions Involving an Amount in Excess of Five Percent of the Current Value of Plan Assets Column A Column B Column C Column D Column G Column H Column I -------- -------- -------- -------- -------- -------- -------- Current value of asset on Identity of Purchase Selling Cost of transaction Net party involved Description of assets price price asset date gain -------------- --------------------- -------- ------- ------- ------------- --------
No single transactions involving an amount in excess of five percent of the current value of Plan assets were noted. Note: Columns E (Lease/Rental) and F (Expense Incurred with Transaction) have been omitted because there is no information to report. 21 Schedule 3 ---------- MELLON 401(k) RETIREMENT SAVINGS PLAN EIN: 25-1233834 Plan Number: 001 Item 27(d) - Reportable Transactions - Series Transactions Year Ended December 31, 1997
- ------------------------------------------------------------------------------------------------------------------------------------ Series Transactions, When Aggregated, Involving an Amount in Excess of Five Percent of the Current Value of Plan Assets Total Total Identity of Number of Number of dollar value dollar value Net gain party involved Description of assets purchases sales of purchases of sales or (loss) -------------- --------------------- --------- --------- ------------ ------------ --------- Mellon Bank Corporation Dreyfus LifeTime Growth & Income Portfolio 77 214 $15,689,710 12,715,360 1,575,799 Mellon Bank Corporation Dreyfus Institutional Prime Money Market Fund 135 195 30,833,443 44,608,589 -- Mellon Bank Corporation Dreyfus Basic S&P 500 Stock Index Fund 152 161 18,387,208 17,166,905 3,971,679 Mellon Bank Corporation Dreyfus Disciplined Stock Fund 204 N/A 25,463,230 N/A N/A Mellon Bank Corporation Mellon Bank Corporation Common Stock 98 126 13,838,191 21,246,137 15,134,265
Note 1: Columns E (Lease/Rental) and F (Expense Incurred With Transaction) have been omitted because there is no information to report. N/A - Not applicable 22 LOGO PEAT MARWICK LLP One Mellon Bank Center Telephone 412 391 9710 Telefax 412 391 8963 Pittsburgh, PA 15219 Telex 7106642199 PMM & CO PGH Consent of Independent Certified Public Accountants --------------------------------------------------- The Board of Directors Mellon Bank Corporation: We consent to incorporation by reference in the Registration Statements (Nos. 33-23635 and 333-16745) on Form S-8 of Mellon Bank Corporation of our report dated June 22, 1998, that is included in the December 31, 1997, Annual Report on Form 11-K of the Mellon 401(k) Retirement Savings Plan. /s/ KPMG Peat Marwick LLP Pittsburgh, Pennsylvania June 29, 1998 LOGO Member Firm of KPMG International Signature --------- Pursuant to the requirements of the Securities Exchange Act of 1934, the administrators of the Mellon 401(k) Retirement Savings Plan have duly caused this annual report to be signed by the undersigned thereunto duly authorized. Mellon 401(k) Retirement Savings Plan By: /s/ Steven G. Elliott ----------------------------------- Steven G. Elliott Chief Financial Officer of Mellon Bank Corporation & Member of the Corporate Benefits Committee Date: June 29, 1998 -----END PRIVACY-ENHANCED MESSAGE-----