-----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, M32y9Nk+Y0ntS//oNDDKac1ryKNmk4gu97l/5pnfRgqc6wBKcaVRBAFyQFr57dSJ AbOn9yazrBW60WNVs5Z0Zw== 0000950109-96-004072.txt : 19960627 0000950109-96-004072.hdr.sgml : 19960627 ACCESSION NUMBER: 0000950109-96-004072 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960626 SROS: NYSE SROS: PHLX FILER: COMPANY DATA: COMPANY CONFORMED NAME: CORESTATES FINANCIAL CORP CENTRAL INDEX KEY: 0000069952 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 231899716 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-06879 FILM NUMBER: 96586340 BUSINESS ADDRESS: STREET 1: CENTRE SQ W STREET 2: 1500 MARKET ST CITY: PHILADELPHIA STATE: PA ZIP: 19101 BUSINESS PHONE: 2159733806 MAIL ADDRESS: STREET 1: 1500 MARKET ST CITY: PHILADELPHIA STATE: PA ZIP: 19101 FORMER COMPANY: FORMER CONFORMED NAME: NATIONAL CENTRAL FINANCIAL CORP DATE OF NAME CHANGE: 19830517 11-K 1 FORM 11-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 11-K ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 1995 Commission file number 0-6879 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: CORESTATES SAVINGS PLAN B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: CORESTATES FINANCIAL CORP Centre Square West 1500 Market Street Philadelphia, PA 19101 REQUIRED INFORMATION The following financial statements and exhibits are filed as part of this report: (a) Item 4 Financial Statements Report of Independent Auditors Statement of Net Assets Available for Benefits as of December 31, 1995 Statement of Net Assets Available for Benefits as of December 31, 1994 Statement of Changes in Net Assets Available for Benefits for the year ended December 31, 1995 Statement of Changes in Net Assets Available for Benefits for the year ended December 31, 1994 Notes to Financial Statements Supplemental Schedules (b) EXHIBIT INDEX (c) Exhibit - Consent of Independent Auditors SIGNATURE Financial statement schedules not included with this report have been omitted because they are not applicable or the required information is shown in the financial statements or notes thereto. CoreStates Savings Plan Financial Statements and Supplemental Schedules Years ended December 31, 1995 and 1994 Contents Report of Independent Auditors.....................................1 Audited Financial Statements Statement of Net Assets Available for Benefits, with Fund Information, December 31, 1995...................................2 Statement of Net Assets Available for Benefits, with Fund Information, December 31, 1994..............................3 Statement of Changes in Net Assets Available for Benefits, with Fund Information, Year ended December 31, 1995..............4 Statement of Changes in Net Assets Available for Benefits, with Fund Information, Year ended December 31, 1994..............5 Notes to Financial Statements......................................6 Supplemental Schedules Assets Held for Investment Purposes................................14 Reportable Transactions............................................15 [LETTERHEAD OF ERNST & YOUNG LLP APPEARS HERE] Report of Independent Auditors The Board of Directors CoreStates Financial Corp We have audited the accompanying statements of net assets available for benefits of the Corestates Savings Plan as of December 31, 1995 and 1994, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express on 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 Plan at December 31, 1995 and 1994 and the changes in its 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 accompanying supplemental schedules of assets held for investment purposes as of December 31, 1995 and reportable transactions for the year then ended, are presented for purposes of complying with the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974, and are not a required part of the basic financial statements. The Fund information in the statement of net assets available for benefits and the statement of changes in net assets available for benefits is presented for purposes of additional analysis rather than to present the net assets available for benefits and changes in net assets available for benefits of each fund. The supplemental schedules and Fund information have been subjected to the auditing procedures applied in our audit of the 1995 financial statements and, in our opinion, are fairly stated in all material respects in relation to the 1995 financial statements taken as a whole. Philadelphia, Pennyslvania May 23, 1996 /s/ Ernst and Young LLP CoreStates Savings Plan Statement of Net Assets Available for Benefits, With Fund Information December 31, 1995
Fund Information ------------------------------------------------------------------- CoreStates Financial CoreStates CoreStates CoreStates Corp Common Equity Bond Equity Index Total Stock Fund Fund Fund Fund - ------------------------------------------------------------------------------------------------------------------------------------ Assets Investments, at fair value (cost $263,298,301): CoreStates Financial Corp Common Stock $ 155,269,279 $ 155,269,279 $ -- $ -- $ -- Mutual funds 172,000,187 2,864,798 53,233,595 18,099,453 7,499,044 Participants' notes receivable 15,262,405 ---------------------------------------------------------------------------------- Total investments 342,531,871 158,134,077 53,233,595 18,099,453 7,499,044 Receivables: Contribution Receivable 1,064,101 394,904 215,412 75,421 53,360 Due from broker 2,220,082 -- 578,541 735,608 -- Accrued investment income 2,260,375 1,729,692 69,340 91,292 35,578 Interfund receivable 1,402,863 101,270 251,793 16,993 380,305 Cash and cash equivalents 225,310 8,711 7,856 2,772 294 ---------------------------------------------------------------------------------- Total assets 349,704,602 160,368,654 54,356,537 19,021,539 7,968,581 Liabilities Interfund payable 1,402,863 290,195 98,784 253,896 5,323 Due to broker 526,968 130,628 -- -- 321,593 ---------------------------------------------------------------------------------- Total liabilities 1,929,831 420,823 98,784 253,896 326,916 ---------------------------------------------------------------------------------- Net assets available for benefits $ 347,774,771 $ 159,947,831 $ 54,257,753 $ 18,767,643 $ 7,641,665 ===================================================================================
Fund Information ---------------------------------------------------------------------------------- CoreStates CoreStates CoreStates Employee Liquidity Balanced International Loan Fund Fund Growth Fund Fund - ------------------------------------------------------------------------------------------------------------------------------------ Assets Investments, at fair value (cost $263,298,301): CoreStates Financial Corp Common Stock $ -- $ -- $ -- $ -- Mutual funds 45,022,599 42,730,616 2,550,082 -- Participants' notes receivable -- -- -- 15,262,405 ---------------------------------------------------------------------------------- Total investments 45,022,599 42,730,616 2,550,082 15,262,405 Receivables: Contribution Receivable 134,436 168,697 21,871 -- Due from broker -- 905,933 -- -- Accrued investment income -- 281,043 53,430 -- Interfund receivable 41,932 49,178 125,845 435,547 Cash and cash equivalents 202,974 2,522 181 -- ---------------------------------------------------------------------------------- Total assets 45,401,941 44,137,989 2,751,409 15,697,952 Liabilities Interfund payable 452,427 82,431 2,318 217,489 Due to broker -- -- 74,747 -- ---------------------------------------------------------------------------------- Total liabilities 452,427 82,431 77,065 217,489 ---------------------------------------------------------------------------------- Net assets available for benefits $ 44,949,514 $ 44,055,558 $ 2,674,344 $ 15,480,463 ==================================================================================
See accompanying notes. 2 CoreStates Savings Plan Statement of Net Assets Available for Benefits, With Fund Information December 31, 1994
Fund Information ----------------------------------------------------------------------- CoreStates Financial CoreStates CoreStates CoreStates Corp Common Equity Bond Equity Index Total Stock Fund Fund Fund Fund ---------------------------------------------------------------------------------- Assets Investments, at fair value (cost $220,630,769): CoreStates Financial Corp Common Stock $ 99,233,103 $ 99,233,103 $ - $ - - Mutual funds 125,943,056 807,645 36,073,737 15,046,882 942,903 Participants' notes receivable 14,167,300 - - - - -------------------------------------------------------------------------------- Total investments 239,343,459 100,040,748 36,073,737 15,046,882 942,903 Due from broker 3,088,865 - 1,623,742 511,301 - Accrued investment income 1,821,014 1,289,076 125,906 86,269 - Interfund receivable 2,915,764 356,466 - - 962,392 Cash and cash equivalents 200,287 4,818 1,333 625 - -------------------------------------------------------------------------------- Total Assets 247,369,389 101,691,108 37,824,718 15,645,077 1,905,295 Liabilities Interfund payable 2,915,764 92,746 1,489,804 456,399 - Due to broker 2,502,933 388,851 - - 942,903 ------------------------------------------------------------------------------- Total Liabilities 5,418,697 481,597 $ 1,489,804 456,399 942,903 ------------------------------------------------------------------------------- Net assets available for benefits $ 241,950,692 $ 101,209,511 $ 36,334,914 $ 15,188,678 962,392 ===============================================================================
See accompanying notes
Fund Information -------------------------------------------------------------------------- CoreStates CoreStates CoreStates Employee Liquidity Balanced International Loan Fund Fund Growth Fund Fund -------------------------------------------------------------------------- Assets Investments, at fair value (cost $220,630,769); CoreStates Financial Corp Common Stock $ - $ - $ - $ - Mutual funds 41,478,529 30,422,181 1,171,179 - Participants' notes receivable - - - 14,167,300 -------------------------------------------------------------------------- Total investments 41,478,529 30,422,181 1,171,179 14,167,300 Due from broker - 953,822 - - Accrued investment income - 319,763 - - Interfund receivable 126,130 - 1,194,480 276,296 Cash and cash equivalents 191,184 2,327 - - -------------------------------------------------------------------------- Total Assets 41,795,843 31,698,093 2,365,659 14,443,596 Liabilities Interfund payable 51,864 824,951 - - Due to broker - - 1,171,179 - -------------------------------------------------------------------------- Total Liabilities 51,864 824,951 1,171,179 - -------------------------------------------------------------------------- Net assets available for benefits $ 41,743,979 $ 30,873,142 $ 1,194,480 $ 14,443,596 ==========================================================================
See accompanying notes 3 CoreStates Savings Plan Statement of Changes in Net Assets Available for Benefits, With Fund Information Year ended December 31, 1995
Fund Information ------------------------------------------------------------------------------- CoreStates Financial CoreStates CoreStates CoreStates CoreStates Corp Common Equity Bond Equity Index Liquidity Total Stock Fund Fund Fund Fund Fund ------------------------------------------------------------------------------------------- Contributions: Employer $ 14,962,993 $ 6,524,829 $ 2,648,631 $ 998,211 $ 380,845 $ 1,982,844 Employee 17,402,508 6,127,377 3,644,446 1,294,321 601,516 2,539,372 ------------------------------------------------------------------------------------------- Total contributions 32,365,501 12,652,206 6,293,077 2,292,532 982,361 4,522,216 Investment income: Interest 757,563 -- -- -- -- -- Dividends on CoreStates Financial Corp Common Stock 5,951,920 5,951,920 -- -- -- -- Dividend income 4,411,315 71,431 268,078 1,155,557 7,353 2,747,477 Distribution of mutual funds' income 3,820,053 -- 1,740,641 -- 297,860 -- ------------------------------------------------------------------------------------------- Total investment income 14,940,851 6,023,351 2,008,719 1,155,557 305,213 2,747,477 Net appreciation in fair value of investments 69,669,824 47,411,963 12,453,132 879,214 847,648 -- Participants' withdrawals (53,885,646) (6,291,910) (9,764) (800) -- -- Transfer from IBI Savings Plan 13,535,481 3,142,385 2,223,828 1,227,437 377,337 4,632,693 Transfer from IBI Capital Accumulation Savings Plan 23,476,385 4,672,250 3,876,243 1,692,315 536,084 10,206,238 Participants' interfund transfers -- (8,078,007) (8,922,396) (3,667,290) 3,630,630 (18,903,089) Other (disbursements) receipts 5,721,683 (793,918) -- -- -- -- ------------------------------------------------------------------------------------------- Increase in net assets available for benefits during the year 105,824,079 58,738,320 17,922,839 3,578,965 6,679,273 3,205,535 Net assets available for benefits at beginning of year 241,950,692 101,209,511 36,334,914 15,188,678 962,392 41,743,979 ------------------------------------------------------------------------------------------- Net assets available for benefits at end of year $347,774,771 $159,947,831 $ 54,257,753 $ 18,767,643 $ 7,641,665 $ 44,949,514 =========================================================================================== CoreStates CoreStates International Employee Balanced Growth Loan Distribution Fund Fund Fund Fund ------------------------------------------------------------- Contributions: Employer $ 2,183,367 $ 244,266 $ -- $ -- Employee 2,807,843 387,633 -- -- ------------------------------------------------------------- Total contributions 4,991,210 631,899 -- -- Investment income: Interest -- -- 757,563 -- Dividends on CoreStates Financial Corp Common Stock -- -- -- -- Dividend income 158,580 2,705 134 Distribution of mutual funds' income 1,716,185 65,367 -- -- ------------------------------------------------------------- Total investment income 1,874,765 68,072 757,697 Net appreciation in fair value of investments 7,881,557 196,310 -- -- Participants' withdrawals -- (6,841,220) (40,741,952) Transfer from IBI Savings Plan 1,504,501 427,300 -- -- Transfer from IBI Capital Accumulation Savings Plan 2,208,981 284,274 -- -- Participants' interfund transfers (5,278,598) (127,991) 593,929 40,752,812 Other (disbursements) receipts -- -- 6,526,461 (10,860) ------------------------------------------------------------- Increase in net assets available for benefits during the year 13,182,416 1,479,864 1,036,867
CoreStates CoreStates International Employee Balanced Growth Loan Distribution Fund Fund Fund Fund ------------------------------------------------------------- Net assets available for benefits at beginning of year 30,873,142 1,194,480 14,443,596 -- Net assets available for benefits at end of year $ 44,055,558 $ 2,674,344 $ 15,480,463 $ =============================================================
See accompanying notes. 4 CoreStates Savings Plan Statement of Changes in Net Assets Available for Benefits, With Fund Information Year ended December 31, 1994
Fund Information ---------------------------------------------------------- CoreStates Financial CoreStates CoreStates CoreStates Corp Common Equity Bond Equity Index Total Stock Fund Fund Fund Fund ------------------------------------------------------------------------- Contributions: Employer $ 13,083,973 $ 4,578,950 $ 2,956,576 $ 1,056,618 $ - Employee 17,701,823 5,989,886 4,217,262 1,428,333 - ------------------------------------------------------------------------- Total contributions 30,785,796 10,568,836 7,173,838 2,484,951 - Investment income: Interest 651,432 842 - - - Dividends on CoreStates Financial Corp Common stock 4,528,158 4,528,158 - - - Dividend income 2,843,076 25,710 191,789 779,217 - Distribution of mutual funds' income 1,244,182 - 216,691 2,854 - ------------------------------------------------------------------------- Total investment income 9,266,848 4,554,710 408,480 782,071 - Net depreciation in fair value of investments (18,966,107) (1,907,487) (14,146,136) (850,059) - Participants' withdrawals (27,707,738) (2,926,298) - - - Transfer from Constellation Savings Plan 6,640,533 1,869,114 767,423 511,511 - Transfer from Inter-Community Savings Plan 145,672 64,837 28,232 9,288 - Participants' interfund transfers - (3,581,357) (6,196,812) (2,587,860) 962,392 Other (disbursements) receipts 7,943,137 25,671 (5,889) 3,822 - ------------------------------------------------------------------------- Increase (decrease) in net assets available for benefits during the year 8,108,141 8,668,026 (11,970,864) 353,724 962,392 Net assets available for benefits at beginning of year 233,842,551 92,541,485 48,305,778 14,834,954 - ------------------------------------------------------------------------- Net assets available for benefits at end of year $ 241,950,692 $101,209,511 $ 36,334,914 $ 15,188,678 $ 962,392 ========================================================================= Fund Information ------------------------------------------------------------------------------ CoreStates CoreStates CoreStates International Employee Liquidity Balanced Growth Loan Distribution Fund Fund Fund Fund Fund ------------------------------------------------------------------------------ Contributions: Employer $ 2,075,068 $ 2,416,761 $ - $ - $ - Employee 2,662,390 3,403,952 - - - ------------------------------------------------------------------------------ Total contributions 4,737,458 5,820,713 - - - Investment income: Interest 425 - - 650,165 - Dividends on CoreStates Financial Corp Common stock - - - - - Dividend income 1,596,803 249,557 - - - Distribution of mutual funds' income - 1,024,637 - - - ------------------------------------------------------------------------------ Total investment income 1,597,228 1,274,194 - 650,165 - Net depreciation in fair value of investments - (2,062,425) - - - Participants' withdrawals - - - (8,271,588) (16,509,852) Transfer from Constellation Savings Plan 2,402,828 1,089,657 - - - Transfer from Inter-Community Savings Plan 22,257 21,058 - - - Participants' interfund transfers (4,722,783) (4,090,496) 1,194,480 2,500,967 16,521,469 Other (disbursements) receipts 3,021 (6,192) - 7,934,321 (11,617) ------------------------------------------------------------------------------ Increase (decrease) in net assets available for benefits during the year 4,040,009 2,046,509 1,194,480 2,813,865 - Net assets available for benefits at beginning of year 37,703,970 28,826,633 - 11,629,731 - ------------------------------------------------------------------------------ Net assets available for benefits at end of year $ 41,743,979 $ 30,873,142 $ 1,194,480 $ 14,443,596 $ - ==============================================================================
See accompanying notes. CoreStates Savings Plan Notes to Financial Statements Years ended December 31, 1995 and 1994 1. Description of the Plan The following brief description of the Plan is provided for general information only. Participants should refer to the Plan agreement for more complete information. General The Plan is a defined contribution, profit-sharing plan which covers qualified employees of CoreStates Financial Corp and certain affiliated companies ("the Company"). The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). Contributions Employee The Plan provides for employee contributions on either an after-tax basis or a before-tax basis (up to $9,240 in 1995 and 1994) equal to any whole percentage of the participant's compensation up to 10% (5% is considered a basic contribution and amounts in excess of 5% are considered an optional contribution) for each payroll period. Employer The Company makes a matching contribution to the Plan on behalf of each participant who has made basic contributions (up to 5%) for each payroll period. The Employer contribution allocated to the participant's account for a given payroll period shall be as follows:
Participant's Years Employer of Vesting Service Matching Contribution --------------------------------------------------------------- Fewer than 2 years 50% At least 2 years but fewer 75% than 3 years 3 years or more 100%
In 1995, the Company made a special qualified non-elective contribution to the CoreStates Common Stock Fund within the Plan for all eligible Plan participants who were defined as non-highly compensated employees. The contribution was made in an amount sufficient to purchase five shares of stock for each recipient, and totaled $1,813,967 which is reported as an Employer contribution on the Statement of Changes in Net Assets Available for Benefits for 1995. 6 CoreStates Savings Plan Notes to Financial Statements (continued) 1. Description of the Plan (continued) Vesting Employee contributions, rollovers, and qualified voluntary employee contribution accounts, as affected by investment results, are fully vested at all times. Employer contributions, also as affected by investment results, are fully vested upon termination of employment because of normal retirement, death, or if the participant incurs a disability. In all other cases, Employer contributions, other than qualified non-elective contributions, as affected by investment results, vest as follows:
Years of Vesting Service Percent Vested -------------------------------------------------------- Fewer than 2 years 0% At least 2 years but fewer 50% than 3 years 3 years or more 100%
Upon the participant's employment termination date, that portion of the Employer's contributions applicable to such participant which is not vested is forfeited and applied to reduce future Employer contributions. Unvested portions are restored to participant's accounts if the participant is reemployed by the Company before incurring a five-year break in service. Expenses The expenses of the Plan, including but not limited to legal and accounting fees, shall be paid by the Plan unless paid by the Company. Payment of Benefits Upon termination of employment, a participant may receive vested benefits as a lump-sum payment or if the participant's vested accrued benefit exceeds $3,500, the participant may elect to receive equal annual installments over a period not exceeding ten years. Also, a participant may elect to receive a distribution from the investment in the CoreStates Common Stock Fund in the form of CoreStates common stock. 7 CoreStates Savings Plan Notes to Financial Statements (continued) 1. Description of the Plan (continued) Loans Active participants, terminated participants and beneficiaries with accrued benefits under the Plan, may borrow funds from the Plan subject to requirements of the Plan. Loans advanced against employees' vested benefits in the Plan are deducted from the amount of any benefits which are payable to the participant upon termination. Withdrawals A participant shall be permitted to withdraw all or a portion of the amount in the participant's after-tax contribution account subject to the restrictions or penalties as set forth in the Plan. Participants who apply for a hardship withdrawal under IRS regulations, or who cease to be a participant in the Plan, may receive their deferred account balance in full. Amounts allocated to withdrawn participants for benefit claims that have been processed and approved for payment prior to year-end but not yet paid are recorded on Form 5500. In accordance with GAAP this amount is properly excluded from participants' withdrawals on the statement of Changes in Net Assets Available for Benefits. The amount payable to withdrawn participants at December 31, 1995 and December 31, 1994 equals $6,548,000 and $4,880,000, respectively. Investment Options CoreStates Bank, N.A. (CBNA) serves as Trustee for the Plan. Seven funds, as of December 31, 1995, are maintained under the Plan for accumulation and investment of the participants' account. The funds are as follows: A. CoreStates Financial Corp Common Stock Fund invests primarily in common stock of CoreStates Financial Corp, the parent company of CBNA; B. CoreStates Equity Fund invests principally in the CoreFund Growth Equity Reserve Rebate, a mutual fund of CoreFund, Inc. for which CoreStates Financial Corp provides investment advisory and custodial services; C. CoreStates Bond Fund invests principally in the CoreFund Intermediate Bond Fund Reserve Rebate, a mutual fund of CoreFund, Inc. for which CoreStates Financial Corp provides investment advisory and custodial services; 8 CoreStates Savings Plan Notes to Financial Statements (continued) 1. Description of the Plan (continued) Investment Options (continued) D. CoreStates Liquidity Fund invests in the CoreFund Cash Reserve Fund Rebate, a mutual fund of CoreFund, Inc. for which CoreStates Financial Corp provides investment advisory and custodial services; E. CoreStates Balanced Fund invests principally in the CoreFund Balanced Rebate Fund Series A, a mutual fund of CoreFund, Inc. for which CoreStates Financial Corp provides investment advisory and custodial services; F. CoreStates Equity Index Fund invests principally in the CoreFund Equity Index Fund, a mutual fund of CoreFund, Inc. for which CoreStates Financial Corp provides investment advisory and custodial services; G. CoreStates International Growth Fund invests principally in the CoreFund International Growth Fund, a mutual fund of CoreFund, Inc. for which CoreStates Financial Corp provides investment advisory and custodial services. 2. Summary of Significant Accounting Policies Basis of Investments Investments are stated at fair value. Cost of investments sold is determined on an average historical cost basis. Loans are carried at the unpaid principal balance. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. 9 CoreStates Savings Plan Notes to Financial Statements (continued) 3. Investments Investments are comprised of the following:
Shares Average Fair or Units Cost Value ------------------------------------------------- December 31, 1995 CoreStates Financial Corp Common Stock Fund: Common Stock 4,032,226 shares $ 94,131,414 $ 155,269,279 CoreFund Cash Reserve A 2,864,798 units 2,864,798 2,864,798 ----------------------------- 96,996,212 158,134,077 CoreStates Equity Fund: CoreFund Cash Reserve A 552,088 units 552,088 552,088 CoreFund Growth Equity Reserve Rebate+ 4,258,812 units 42,310,632 52,681,507 ----------------------------- 42,862,720 53,233,595 CoreStates Bond Fund: CoreFund Cash Reserve A 236,018 units 236,018 236,018 CoreFund Intermediate Bond Fund Rebate+ 1,791,719 units 17,638,993 17,863,434 ----------------------------- 17,875,011 18,099,452 CoreStates Liquidity Fund: CoreFund Cash Reserve A 45,022,599 units 45,022,599 45,022,599 ----------------------------- 45,022,599 45,022,599 CoreStates Balanced Fund: CoreFund Cash Reserve A 120,572 units 120,572 120,572 CoreFund Balanced Rebate Fund Series A+ 3,509,888 units 36,099,910 42,610,044 ----------------------------- 36,220,482 42,730,616 CoreStates Equity Index Fund: CoreFund Cash Reserve A 51,422 units 51,422 51,422 CoreFund Equity Index Fund A 285,131 units 6,635,377 7,447,623 ----------------------------- 6,686,799 7,499,045
10 CoreStates Savings Plan Notes to Financial Statements (continued) 3. Investments (continued)
Shares Average Fair or Units Cost Value ---------------------------------------------- December 31, 1995 (continued) CoreFund International Growth Fund A 193,732 units $ 2,346,351 $ 2,524,360 ---------------------------- 2,372,073 2,550,082 Employee Loan Fund: Participant Notes Receivable, with interest rates ranging from 5.5% to 11% 15,262,405 15,262,405 ---------------------------- Total investments $263,298,301 $342,531,871 ============================ December 31, 1994 CoreStates Financial Corp Common Stock Fund: Common Stock 3,816,159 shares $ 78,547,410 $ 99,233,103 CoreFund Cash Reserve Rebate 807,645 units 807,645 807,645 ---------------------------- 79,355,055 100,040,748 CoreStates Equity Fund: CoreFund Cash Reserve Rebate 177,639 units $ 177,639 $ 177,639 CoreFund Growth Equity Reserve Rebate+ 3,786,508 units 36,469,348 35,896,098 ---------------------------- 36,646,987 36,073,737 CoreStates Bond Fund: CoreFund Cash Reserve Rebate 128,355 units 128,355 128,355 CoreFund Intermediate Bond Fund Rebate+ 1,572,026 units 15,583,571 14,918,527 ---------------------------- 15,711,926 15,046,882 CoreStates Liquidity Fund: CoreFund Cash Reserve Rebate+ 41,478,529 units 41,478,529 41,478,529 ---------------------------- 41,478,529 41,478,529 CoreStates Balanced Fund: CoreFund Cash Reserve Rebate 124,552 units 124,552 124,552 CoreFund Balanced Rebate Fund Series A+ 3,066,561 units 31,032,338 30,297,629 ---------------------------- 31,156,890 30,422,181 CoreStates Equity Index Fund: CoreFund Equity Index Fund A 46,887 units 942,903 942,903 ---------------------------- 942,903 942,903
11 CoreStates Savings Plan Notes to Financial Statements (continued) 3. Investments (continued)
Shares Average Fair or Units Cost Value -------------------------------------------------- December 31, 1994 (continued) CoreStates International Growth Fund: CoreFund International Growth Fund A 97,113 units $ 1,171,179 $ 1,171,179 --------------------------------- 1,171,179 1,171,179 Employee Loan Fund: Participant Notes Receivable, with interest rates ranging from 5.5% to 11%+ 14,167,300 14,167,300 --------------------------------- Total investments $ 220,630,769 $ 239,343,459 ====================================
+ Represents greater than 5% of net assets available for benefits. Fair values are determined: (1) for CoreStates Financial Corp Common Stock on the basis of the reported bid price in the over-the-counter securities market as reported by NYSE; (2) short-term liquid assets are valued at amortized cost which approximates fair value; and (3) CoreFund mutual funds are valued at net asset value at the close of business on the last business day of the Plan year. The Plan's investments are held by a bank-administered trust fund. During 1995 and 1994, the Plan's investments (including investments bought, sold, as well as held during the year) appreciated (depreciated) in fair value as follows:
Net Appreciation (Depreciation) in Fair Value Fair Value at During the Year End of Year ------------------------------------ Year ended December 31, 1995: Fair value as determined by quoted market prices: Common stock: Employer company $ 47,411,963 $ 155,269,279 Mutual funds 22,257,861 172,000,187 Participant notes receivable - 15,262,405 ------------------------------------ $ 69,669,824 $ 342,531,871 ====================================
12 Notes to Financial Statements (continued) 3. Investments (continued)
Net Appreciation (Depreciation) in Fair Value Fair Value at During the Year End of Year ---------------------------------------- Year ended December 31, 1994: Fair value as determined by quoted market prices: Common stock: Employer company $ (1,907,487) $ 99,233,103 Mutual funds (17,058,620) 125,953,056 Participant notes receivable - 14,167,300 ---------------------------------------- $ (18,966,107) $ 239,353,459 ========================================
4. Plan Mergers As a result of the June 27, 1994 acquisition by CoreStates Financial Corp of Independence Bancorp, Inc., (IBI), participants of the Independence Savings Plan and Independence Capital Accumulation Plan became eligible for coverage under the CoreStates Savings Plan effective September 1, 1994. The remaining net assets (approximately $ 13.5 million as of December 31, 1994) of the Independence Savings Plan were transferred to the CoreStates Savings Plan during 1995. Eligible participants of the Independence Capital Accumulation Plan became eligible for coverage under the CoreStates Savings Plan effective January 1, 1995. All remaining assets (approximately $23.5 million as of December 31, 1994) of the Independence Capital Accumulation Plan were transferred into the CoreStates Savings Plan during 1995. 5. Income Tax Status The Internal Revenue Service has ruled that the Plan qualifies under Section 401(a) of the Internal Revenue Code (IRC) and, therefore, the related trust is not subject to tax under present income tax law. Once qualified, the Plan is required to operate in conformity with the IRC to maintain its qualification. The Plan has subsequently been amended. Management is not aware of any course of action or series of events that have occurred that might adversely affect the Plan's qualified status. 13 Supplemental Schedules CoreStates Savings Plan Assets Held for Investment Purposes December 31, 1995
Description Shares or Units Average Cost Fair Value - -------------------------------------------------------------------------------- CoreStates Financial Corp* Common Stock 4,032,226 shares $ 94,131,414 $ 155,269,279 CoreFund* Balanced Rebate Fund Series A 3,509,888 units 36,099,910 42,610,044 CoreFund* Cash Reserve A 48,873,219 units 48,873,219 48,873,219 CoreFund* Growth Equity Reserve Rebate 3,911,019 units 42,310,632 52,681,507 CoreFund* Intermediate Bond Fund Rebate 18,581,219 units 17,638,993 17,863,434 CoreFund* Equity Index Fund A 285,131 units 6,635,377 7,447,623 CoreFund* International Growth Fund A 193,632 units 2,346,351 2,524,360 Participant Notes Receivable, with interest rates ranging from 5.5% to 11.0% 15,262,405 15,262,405 ------------------------------ Total investments $ 263,298,301 $ 342,531,871 ==============================
*Indicates a party-in-interest to the Plan. 14 CoreStates Savings Plan Reportable Transactions December 31, 1995
(A) (A) Identity of Description Purchase Selling Gain Parties Involved of Assets Price Price (Loss) - ------------------------------------------------------------------------------------------------------------------------------- Category I--A single transaction in excess of 5% of plan assets - -------------------------------------------------------------- CoreFund Cash Reserve Rebate Sold 49,210,387 units $ 49,210,387 $ -- CoreFund Cash Reserve Series A Purchased 49,210,387 units $ 49,210,387
15 CoreStates Savings Plan Reportable Transactions (continued) December 31, 1995
(A) (A) Identity of Description Purchase Selling Gain Parties Involved of Assets Price Price (Loss) - ---------------------------------------------------------------------------------------------------------------------------------- Category III--A series of transactions in a security issue - ---------------------------------------------------------- aggregating in excess of 5% of plan assets ------------------------------------------ CoreFund Cash Reserve Series A Purchased 66,910,690 units in 119 transactions; sold 18,037,471 units in 99 transactions $ 66,910,690 $ 18,037,471 $ -- CoreFund Balanced Fund Series A Purchased 11,085,627 units in 41 transactions; sold 591,169 units in 13 transactions 11,085,627 6,654,769 636,714 CoreStates Financial Corp Purchased 1,023,597 units in 95 transactions; sold 479,551 units in 65 transactions 32,928,014 23,509,882 6,601,255 CoreRund Cash Reserve Rebate Fund Purchased 66,743,652 units in 365 tansactions; sold 109,460,372 units in 310 transactions 66,743,652 109,460,372 --
There were no Category II or IV transactions during the year ended December 31, 1995 (A) Commissions and fees related to purchases and sales of investments are included in the cost of the investment or the proceeds from the sale and are not separately indentified. 16 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the plan administrator has duly caused this annual report to be signed on its behalf by the undersigned hereunto authorized. CORESTATES SAVINGS PLAN Date: June 23, 1996 By:/s/ Vik Dewan ------------------------ Vik Dewan EXHIBIT INDEX Consent of Independent Auditors EX-23 2 CONSENT OF INDEPENDENT AUDITORS CONSENT OF INDEPENDENT AUDITORS We consent to the incorporation by reference in the Registration Statement (Form S-8 No.33-32934) pertaining to CoreStates Savings Plan of CoreStates Financial Corp of our report dated May 23, 1996, with respect to the financial statements and schedules of the CoreStates Savings Plan included in this Annual Report (Form 11-K) for the year ended December 31, 1995. Ernst & Young LLP Philadelphia, Pennsylvania June 23, 1996 -----END PRIVACY-ENHANCED MESSAGE-----