-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, mZb/dnhQT2Dd9KTKCMhVIVqxJyA2IK31WK9G63+JSnDzhM5hQD1ncKKTWqdLN6GJ /ppRFJrDudkxXaout6flIw== 0000950109-95-002523.txt : 199506290000950109-95-002523.hdr.sgml : 19950629 ACCESSION NUMBER: 0000950109-95-002523 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19941231 FILED AS OF DATE: 19950628 SROS: NYSE 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: 95550264 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, 1994 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 Broad and Chestnut Streets Philadelphia, PA 19107 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 Plan Benefits, with Fund Information, December 31, 1994 Statement of Net Assets Available for Plan Benefits, with Fund Information, December 31, 1993 Statement of Changes in Net Assets Available for Plan Benefits, with Fund Information, Year ended December 31, 1994 Statement of Changes in Net Assets Available for Plan Benefits, with Fund Information, Year ended December 31, 1993 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. Financial Statements and Supplemental Schedules CoreStates Savings Plan Years ended December 31, 1994 and 1993 with Report of Independent Auditors CoreStates Savings Plan Financial Statements and Supplemental Schedules Years ended December 31, 1994 and 1993 Contents Report of Independent Auditors............................................. 1 Audited Financial Statements Statement of Net Assets Available for Plan Benefits, with Fund Information, December 31, 1994........................................... 2 Statement of Net Assets Available for Plan Benefits, with Fund Information, December 31, 1993...................................... 3 Statement of Changes in Net Assets Available for Plan Benefits, with Fund Information, Year ended December 31, 1994................................ 4 Statement of Changes in Net Assets Available for Plan Benefits, with Fund Information, Year ended December 31, 1993................................ 5 Notes to Financial Statements.............................................. 6 Supplemental Schedules Assets Held for Investment Purposes........................................ 15 Reportable Transactions.................................................... 16
Report of Independent Auditors The Board of Directors CoreStates Financial Corp We have audited the accompanying statements of net assets available for plan benefits of the CoreStates Savings Plan as of December 31, 1994 and 1993, 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 Plan at December 31, 1994 and 1993 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 and reportable transactions as of or for the year ended December 31, 1994, 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 plan benefits and the statement of changes in net assets available for plan benefits is presented for purposes of additional analysis rather than to present the net assets available for plan benefits and changes in net assets available for plan benefits of each fund. The supplemental schedules and Fund information have been subjected to the auditing procedures applied in our audit of the 1994 financial statements and, in our opinion, are fairly stated in all material respects in relation to the 1994 basic financial statements taken as a whole. Ernst & Young LLP May 2, 1995 1 CoreStates Savings Plan Statement of Net Assets Available for Plan 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 Plan benefits $241,950,692 $101,209,511 $36,334,914 $15,188,678 $ 962,392 ================================================================================================= Fund Information ------------------------------------------------------------------------------------------------ CoreStates CoreStates CoreStates Employee Liquidity Balanced International Loan Distribution Fund Fund Growth Fund 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 Plan benefits $41,743,979 $30,873,142 $1,194,480 $14,443,596 $ -- =================================================================================================
See accompanying notes. 2 CoreStates Savings Plan Statement of Net Assets Available for Plan Benefits, with Fund Information December 31, 1993
Fund Information --------------------------------------------------------------------------- CoreStates Financial CoreStates CoreStates CoreStates Corestates Corp Common Equity Bond Liquidity Balanced Total Stock Fund Fund Fund Fund Fund -------------------------------------------------------------------------------------------- Assets Investments, at fair value (cost $194,809,305): CoreStates Financial Corp Common Stock $ 91,223,511 $91,223,511 $ -- $ -- $ -- $ -- Mutual funds 132,365,179 537,701 48,723,055 14,922,139 39,225,144 28,957,140 Participants' notes receivable 11,027,409 -- -- -- -- -- -------------------------------------------------------------------------------------------- Total investments 234,616,099 91,761,212 48,723,055 14,922,139 39,225,144 28,957,140 Due from broker 330,230 137,806 -- 192,424 -- -- Accrued investment income 1,373,817 1,041,321 47,244 52,313 -- 232,939 Interfund receivable 1,893,614 -- 4,042 -- -- 3,162 Cash and cash equivalents (501,846) 166,709 255,935 (236,075) (794,109) 105,694 Other assets 2,937 1,500 -- 141 -- 1,296 -------------------------------------------------------------------------------------------- Total assets 237,714,851 93,108,548 49,030,276 14,930,942 38,431,035 29,300,231 Liabilities Amounts payable to withdrawing participants 1,284,088 -- -- -- -- -- Interfund payable 1,893,614 567,063 318,792 95,988 727,065 184,706 Due to broker 694,598 -- 405,706 -- -- 288,892 -------------------------------------------------------------------------------------------- Total liabilities 3,872,300 567,063 724,498 95,988 727,065 473,598 -------------------------------------------------------------------------------------------- Net assets available for Plan benefits $233,842,551 $92,541,485 $48,305,778 $14,834,954 $37,703,970 $28,826,633 ============================================================================================ Fund Information ---------------------------- Employee Loan Distribution Fund Fund ---------------------------- Assets Investments, at fair value (cost $194,809,305): CoreStates Financial Corp $ -- $ -- Common Stock Mutual funds -- -- Participants' notes receivable 11,027,409 -- ---------------------------- Total investments 11,027,409 -- Due from broker -- -- Accrued investment income -- -- Interfund receivable 602,322 1,284,088 Cash and cash equivalents -- -- Other assets -- -- ---------------------------- Total assets 11,629,731 1,284,088 Liabilities Amounts payable to withdrawing participants -- 1,284,088 Interfund payable -- Due to broker -- -- ---------------------------- Total liabilities 1,284,088 ---------------------------- Net assets available for Plan benefits $11,629,731 $ -- ============================
See accompanying notes. 3 CoreStates Savings Plan Statement of Changes in Net Assets Available for Plan 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 common trust funds' income 1,244,182 -- 216,691 2,854 -- ---------------------------------------------------------------------------------- Total investment income 9,266,848 4,554,710 408,480 782,071 -- Net realized and unrealized depreciation on 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 Plan benefits during the year 8,108,141 8,668,026 (11,970,864) 353,724 962,392 Net assets available for Plan benefits at beginning of year 233,842,551 92,541,485 48,305,778 14,834,954 -- ---------------------------------------------------------------------------------- Net assets available for Plan benefits at end of year $241,950,692 $101,209,511 $ 36,334,914 $15,188,678 $962,392 ================================================================================== Fund Information -------------------------------------------------------------------------------------- CoreStates CoreStates CoreStates Employeees Liquidity Balanced International Loan Distribution Fund Fund Growth 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 common trust funds' income -- 1,024,637 -- -- -- -------------------------------------------------------------------------------------- Total investment income 1,597,228 1,274,194 -- 650,165 -- Net realized and unrealized depreciation on 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 Plan benefits during the year 4,040,009 2,046,509 1,194,480 2,813,865 -- Net assets available for Plan benefits at beginning of year 37,703,970 28,826,633 -- 11,629,731 -- -------------------------------------------------------------------------------------- Net assets available for Plan benefits at end of year $ 41,743,979 $ 30,873,142 $ 1,194,480 $14,443,596 $ -- =====================================================================================
See accompanying notes. 4 CoreStates Savings Plan Statement of Changes in Net Assets Available for Plan Benefits, with Fund Information Year ended December 31, 1993
Fund Information ----------------------------------------------------------------------------- CoreStates Financial CoreStates CoreStates CoreStates Corestates Corp Common Equity Bond Liquidity Balanced Total Stock Fund Fund Fund Fund Fund -------------------------------------------------------------------------------------------- Contributions: Employer $ 15,656,831 $ 7,410,690 $ 2,727,320 $ 1,042,802 $ 2,256,484 $ 2,219,535 Employee 16,730,671 5,599,896 3,827,976 1,411,728 2,908,762 2,982,309 -------------------------------------------------------------------------------------------- Total contributions 32,387,502 13,010,586 6,555,296 2,454,530 5,165,246 5,201,844 Investment income: Interest 585,174 3,155 2,217 2,628 7,813 2,131 Dividends on CoreStates Financial Corp common stock 3,744,380 3,744,380 -- -- -- -- Dividend income 2,969,940 22,781 224,034 708,157 1,172,174 842,483 Distribution of common trust funds' income 23,430 -- -- 23,147 283 -- -------------------------------------------------------------------------------------------- Total investment income 7,322,924 3,770,316 226,251 733,932 1,180,270 844,614 Net realized and unrealized appreciation (depreciation) on investments 5,653,672 (8,511,669) 12,776,086 (53,286) -- 1,442,541 Participants' withdrawals (18,179,233) (721,757) -- (645) -- -- Transfer from First Peoples Savings Plan 5,473,568 1,072,486 474,175 828,578 2,590,316 508,013 Participants' interfund transfers -- (1,122,471) (1,180,846) (1,463,142) (9,325,544) 21,571 Other (disbursements) receipts 6,795,124 (1,584) (6,558) (691) (3,512) 2,381 -------------------------------------------------------------------------------------------- Increase (decrease) in net assets available for Plan benefits during the year 39,453,557 7,495,907 18,844,404 2,499,276 (393,224) 8,020,964 Net assets available for Plan benefits at beginning of year 194,388,994 85,045,578 29,461,374 12,335,678 38,097,194 20,805,669 -------------------------------------------------------------------------------------------- Net assets available for Plan benefits at end of year $233,842,551 $92,541,485 $48,305,778 $14,834,954 $37,703,970 $28,826,633 ============================================================================================ Fund Information --------------------------------- Employee Loan Distribution Fund Fund --------------------------------- Contributions: Employer $ -- $ -- Employee -- -- --------------------------------- Total contributions -- -- Investment income: Interest 567,230 -- Dividends on CoreStates Financial Corp common stock -- -- Dividend income 311 -- Distribution of common trust funds' income -- -- --------------------------------- Total investment income 567,541 -- Net realized and unrealized appreciation (depreciation) on investments -- -- Participants' withdrawals (7,076,477) (10,380,354) Transfer from First Peoples Savings Plan -- -- Participants' interfund transfers 2,688,977 10,381,455 Other (disbursements) receipts 6,806,189 (1,101) --------------------------------- Increase (decrease) in net assets available for Plan benefits during the year 2,986,230 -- Net assets available for Plan benefits at beginning of year 8,643,501 -- --------------------------------- Net assets available for Plan benefits at end of year $11,629,731 $ -- =================================
See accompanying notes. 5 CoreStates Savings Plan Notes to Financial Statements Years ended December 31, 1994 and 1993 1. Summary of Significant Accounting Policies Basis of Investments Investments are stated at fair value (Note 4). Cost of investments sold is determined on an average historical cost basis. Loans are carried at unpaid principal balance. Income Tax Status The Plan has received a tax determination letter from the Internal Revenue Service stating that the Plan qualifies under the Internal Revenue Code and is, therefore, not subject to tax under present income tax law. The Plan has subsequently been amended, but Management believes that the Plan, as amended, is exempt from federal income taxes. 2. 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. A. General As amended, 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). B. Plan Termination While the Company has not expressed any intent to discontinue its contributions, it is free to do so at any time, subject to the provisions of ERISA. Upon complete discontinuance of contributions by the Company, or termination or partial termination of the Plan, the rights of all affected participants to benefits accrued to that date shall become fully vested, except to the extent that law or regulations may preclude such vesting in order to prevent discrimination in favor of highly compensated employees. 6 CoreState Savings Plan Notes to Financial Statements (continued) 2. Description of the Plan (continued) B. Plan Termination (continued) Upon final or partial termination of the Plan, and after payment of all expenses not paid by the Company and proportional adjustment of the separate accounts of participants affected thereby to reflect such expenses and a reallocation of profits and losses to the date of such termination or partial termination, affected participants and beneficiaries shall be entitled to distribution of their accrued benefits. C. Contributions Employee The Plan provides for employee contributions on either an after-tax basis or a before-tax basis (up to $9,240 in 1994 and $8,994 in 1993) 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 than 3 years 75% 3 years or more 100%
In 1993, 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 $3,091,905 which is reported as an Employer contribution on the Statement of Changes in Net Assets Available for 1993. 7 CoreState Savings Plan Notes to Financial Statements (continued) 2. Description of the Plan (continued) D. 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 than 3 years 50% 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. E. 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. F. 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 accounts invested in the CoreStates Common Stock Fund in the form of CoreStates common stock. 8 CoreState Savings Plan Notes to Financial Statements (continued) 2. Description of the Plan (continued) G. 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. H. 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. The amount payable to withdrawing participants at December 31, 1994 is $4,880,000. 3. Investment Programs CoreStates Bank, N.A. (CBK) serves as Trustee for the Plan. Five funds, as of December 31, 1994, 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 CBK; 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; 9 CoreState Savings Plan Notes to Financial Statements (continued) 3. Investment Programs 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; 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; As of January 1, 1995, two additional funds will be available: 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. 4. Investments Investments are comprised of the following:
December 31, 1994 ------------------------------ Shares Average Fair or Units Cost Value -------------------------------------------- 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 --------------------------
10 CoreState Savings Plan Notes to Financial Statements (continued)
4. Investments (continued) December 31, 1994 ------------------------------- Shares Average Fair or Units Cost Value ----------------------------------------------- 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 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 ===========================
11 CoreState Savings Plan Notes to Financial Statements (continued)
4. Investments (continued) December 31, 1993 -------------------------------- Shares Average Fair or Units Cost Value ------------------------------------------------ CoreStates Financial Corp Common Stock Fund: Common Stock+ 3,491,484 shares $ 66,622,378 $ 91,223,511 CoreFund Cash Reserve Rebate 537,701 units 537,701 537,701 --------------------------- 67,160,079 91,761,212 --------------------------- CoreStates Equity Fund: CoreFund Cash Reserve Rebate 469,105 units 469,105 469,105 CoreFund Growth Equity Reserve Rebate+ 3,591,559 units 34,555,790 48,253,950 --------------------------- 35,024,895 48,723,055 --------------------------- CoreStates Bond Fund: CoreFund Cash Reserve Rebate 133,662 units 133,662 133,662 CoreFund Intermediate Bond Fund Rebate+ 1,469,872 units 14,666,573 14,788,477 --------------------------- 14,800,235 14,922,139 --------------------------- CoreStates Liquidity Fund: CoreFund Cash Reserve Rebate+ 39,225,144 units 39,225,144 39,225,144 --------------------------- 39,225,144 39,225,144 --------------------------- CoreStates Balanced Fund: CoreFund Cash Reserve Rebate 369,438 units 369,438 369,438 CoreFund Balanced Rebate Fund Series A+ 2,689,343 units 27,202,105 28,587,702 --------------------------- 27,571,543 28,957,140 --------------------------- Employee Loan Fund: Participant Notes Receivable, with interest rates ranging from 5.5% to 11% 11,027,409 11,027,409 --------------------------- Total investments $194,809,305 $234,616,099 ===========================
+--Represents greater than 5 percent of net assets available for Plan benefits 12 CoreState Savings Plan Notes to Financial Statements (continued) 4. Investments (continued) 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 NASDAQ; (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 December 31, 1994. The Plan's investments are held by a bank-administered trust fund. During 1994 and 1993, the Plan's investments (including investments bought, sold, as well as held during the year) (depreciated) appreciated in fair value by $(18,966,107) and $5,653,672 as follows:
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 ================================== Year ended December 31, 1993: Fair value as determined by quoted market prices: Common stock: Employer company $ (8,511,669) $ 91,223,511 Mutual funds 14,165,341 132,365,179 Participant notes receivable -- 11,027,409 ---------------------------------- $ 5,653,672 $234,616,099 ==================================
13 CoreState Savings Plan Notes to Financial Statements (continued) 5. Subsequent Events As the result of the June 27, 1994 acquisition by CoreStates Financial Corp of Independence Bancorp, Inc., (Independence), participants became eligible for coverage under the CoreStates Savings Plan effective September 1, 1994. The remaining net assets (approximately $13.4 million as of December 31, 1994) of the Independence Savings Plan were transferred to the CoreStates Savings Plan in the first quarter of 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 $25.6 million as of December 31, 1994) of the Independence Capital Accumulation Plan will be transferred into the CoreStates Savings Plan during 1995. Germantown Savings Bank (GSB) employees became eligible for coverage under the CoreStates Savings Plan effective January 1, 1995 due to the December 2, 1994 acquisition of Germantown Savings Bank by CoreStates Financial Corp. 14 CoreStates Savings Plan Assets Held for Investment Purposes December 31, 1994
Description Shares or Units Average Cost Fair Value ----------- --------------- ------------ ---------- CoreStates Financial Corp* Common Stock 3,816,159 shares $ 78,547,410 $ 99,233,103 CoreFund* Balanced Rebate Fund Series A 3,066,561 units 31,032,338 30,297,629 CoreFund* Cash Reserve Rebate 42,716,720 units 42,716,720 42,716,720 CoreFund* Growth Equity Reserve Rebate 3,786,508 units 36,469,348 35,896,098 CoreFund* Intermediate Bond Fund Rebate 1,572,026 units 15,583,571 14,918,527 CoreFund* Equity Index Fund A 46,887 units 942,903 942,903 CoreFund* International Growth Fund A 97,113 units 1,171,179 1,171,179 Participant Notes Receivable, with interest rates ranging from 5.5% to 11.0% -- 14,167,300 --------------------------- Total investments $206,463,469 $239,343,459 ===========================
*--Indicates a party-in-interest to the Plan. 15 CoreStates Savings Plan Reportable Transactions December 31, 1994
(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 Purchased 3,540,711 units at 100% of par value on July 5, 1994 $3,540,711 CoreFund Cash Reserve Rebate Purchased 1,576,972 units at 100% of par value on March 2, 1994 1,576,972 CoreFund Cash Reserve Rebate Purchased 787,435 units at 100% of par value on March 2, 1994 787,435 Category II--A series of transactions (other than security transactions) - ------------------------------------------------------------------------ with the same person aggregating in excess 5% of plan assets - -------------------------------------------------------------- None.
16 CoreStates Savings Plan Reportable Transactions (continued) December 31, 1994
(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 Rebate Purchased 47,795,449 units in 389 transactions; sold 45,813,779 units in 295 transactions $47,795,449 $45,813,779 $ - CoreFund Balanced Rebate Fund Purchased 829,348 units in 38 transactions; sold Series A 452,130 units in 11 transactions 8,410,506 4,638,154 57,881 CoreFund Growth Equity Reserve Purchased 859,724 units in 35 transactions; sold Rebate 664,776 units in 14 transactions 8,321,750 6,533,465 125,274 CoreFund Intermediate Bond Fund Purchased 388,947 units in 53 transactions; sold Rebate 286,793 units in 13 transactions 3,771,402 2,791,293 (63,111) CoreStates Financial Corp Purchased 742,377 shares in 46 transactions; sold 311,011 shares in 30 transactions 19,791,742 8,180,559 2,007,953 CoreStates Financial Corp Received 55,130 shares in a transfer from the Savings and Investment Plan of Constellation Bancorp 2,221,425 - -
17 CoreStates Savings Plan Reportable Transactions (continued) December 31, 1994
(A) (A) Identity of Description Purchase Selling Gain Parties Involved of Assets Price Price (Loss) - ------------------------------------------------------------------------------------------------------------------------------ Category IV--Any single or series of transctions with a person involving securities - ----------------------------------------------------------------------------------- in excess of 5% of plan assets ------------------------------ None.
(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 identified. 18 EXHIBIT INDEX Consent of Independent Auditors EX-23 2 AUDITOR'S CONSENT CONSENT OF INDEPENDENT AUDITORS We consent to the incorporation by reference in the Registration Statement (Form S-8 No. 33-32934) pertaining to the CoreStates Savings Plan of CoreStates Financial Corporation of our report dated May 2, 1995, 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, 1994. Ernst & Young LLP Philadelphia, Pennsylvania June 26, 1995 EX-23.1 3 SIGNATURE CONSENT 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 duly authorized. CORESTATES SAVINGS PLAN Date: 27 June, 1995 By /s/ S. W. Holt -------- ------------------------------------- S. W. Holt for the CoreStates Benefit Plans Committee -----END PRIVACY-ENHANCED MESSAGE-----