-----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, OIT/Z/7Ag2wnaAMhCa6WWtw6rLRs2s6M2lhYTqdbkCPMAPgLOlACPtubLL3H8OMQ 9YwK3B8RsMfoawL5Lo3FsQ== 0000950131-97-000234.txt : 19970117 0000950131-97-000234.hdr.sgml : 19970117 ACCESSION NUMBER: 0000950131-97-000234 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970115 ITEM INFORMATION: Other events FILED AS OF DATE: 19970116 SROS: CSX SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST CHICAGO NBD CORP CENTRAL INDEX KEY: 0000070040 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 381984850 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-07127 FILM NUMBER: 97506910 BUSINESS ADDRESS: STREET 1: ONE FIRST NATIONAL PLAZA CITY: CHICAGO STATE: IL ZIP: 60670 BUSINESS PHONE: 3127324000 MAIL ADDRESS: STREET 1: ONE FIRST NATIONAL PLAZA CITY: CHICAGO STATE: IL ZIP: 60670 FORMER COMPANY: FORMER CONFORMED NAME: NBD BANCORP INC /DE/ DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: NATIONAL DETROIT CORP DATE OF NAME CHANGE: 19810522 8-K 1 FORM 8-K Attachment A ------------ CHICAGO, January 15, 1997 -- First Chicago NBD Corporation today reported record net income of $377 million, or $1.14 per fully diluted common share, for the fourth quarter. In the year-ago fourth quarter, operating earnings were $318 million, or $0.96 per common share. Return on common stockholders' equity for the fourth quarter of 1996 was 17.5%, compared with 15.4% a year ago. Full-year 1996 net income was a record $1.436 billion, or $4.32 per share. These results include a one-time charge of 4 cents per share related to the recapitalization of the Savings Association Insurance Fund. For 1995, operating earnings were $1.341 billion, or $3.99 per share. Return on equity for 1996 was 17.0%, versus 16.8% for 1995. All 1995 operating results exclude merger-related charges of $267 million, taken in the fourth quarter.
- -------------------------------------------------------------------------------- FIRST CHICAGO NBD KEY RATIOS - -------------------------------------------------------------------------------- 4TH QTR. 4TH QTR.* FULL YEAR FULL YEAR* 1996 1995 1996 1995 - -------------------------------------------------------------------------------- Earnings per common share $1.14 0.96 4.32 3.99 - --------------------------------------------------------------------------- Return on common equity 17.5% 15.4 17.0 16.8 - --------------------------------------------------------------------------- Return on assets 1.46% 1.02 1.28 1.10 - --------------------------------------------------------------------------- Adjusted net interest margin 4.64% 3.93 4.44 3.89 - --------------------------------------------------------------------------- Operating efficiency 51.2% 54.0 51.9 55.4 - ---------------------------------------------------------------------------
* On an operating basis A-1 HIGHLIGHTS . The adjusted net interest margin for the fourth quarter rose to 4.64% from 4.51% for the third quarter and 3.93% for the year-ago quarter. The full- year ratio was 4.44%, compared with 3.89% for 1995. This substantial improvement resulted from the merger-related strategic reduction of low- margin assets, and from loan growth in the higher-yielding credit card and regional banking businesses. . The credit card business produced record profits for the fourth quarter, and its return on equity for the year exceeded 30%. Managed credit card receivables increased 5.7% to $18.5 billion at December 31, compared with $17.5 billion at the end of 1995. During the fourth quarter, the Corporation securitized $1.3 billion of credit card assets, bringing total securitized receivables to $8.9 billion at year-end. The charge-off rate for the managed portfolio increased to 6.7% for the fourth quarter, compared with 5.9% for the third quarter. . The Corporation repurchased 7.3 million shares of its common stock during the fourth quarter at an average price of $53.93. Remaining authorization on the stock repurchase program announced in October 1996 is 32.7 million shares. . Commercial credit quality continued to be excellent, with year-end nonperforming assets of $290 million, or 0.4% of total loans and other real estate. A-2 . Market-driven revenues for the fourth quarter rose to $83 million, versus $40 million for the third quarter. . Operating expenses for 1996 totaled $3.253 billion, versus last year's $3.268 billion, reflecting the achievement of the merger-related target of $200 million in run-rate expense savings by the end of 1996. . In November, the Corporation announced an 11% increase in the quarterly common stock dividend to $0.40 per share, effective with the January 1, 1997, payment. . Tier 1 and total risk-based capital ratios increased to 9.1% and 13.2%, respectively, at December 31, 1996. During the quarter the Corporation issued $750 million of trust preferred securities, which qualify as tax- advantaged Tier 1 capital. Book value per common share was $27.31 at year- end, an increase from $25.25 one year ago. NET INTEREST INCOME NET INTEREST INCOME on a tax-equivalent basis was $907 million for the fourth quarter, up from $864 million in the year-ago quarter. AVERAGE LOANS grew to $65.5 billion from $62.3 billion a year ago. AVERAGE EARNING ASSETS were $87.9 billion for the quarter. NET INTEREST MARGIN on a reported basis was 4.11%, an increase of 11 basis points from last quarter. For 1996, the reported margin was 3.83%, 69 basis points higher than 1995's 3.14%. Adjusted for credit card securitizations and the activities of A-3 First Chicago Capital Markets, Inc., the net interest margin was 4.64% for the fourth quarter, versus 4.51% in the third quarter. This ratio was 4.44% for the full year, up from 3.89% in 1995. NONINTEREST INCOME NONINTEREST INCOME was $682 million in the fourth quarter. Total noninterest income for the year was $2.548 billion. MARKET-DRIVEN REVENUE was $83 million for the quarter, with EQUITY SECURITIES GAINS totaling $71 million and COMBINED TRADING PROFITS of $12 million. CREDIT CARD FEE REVENUE was $259 million. Adjusted for securitizations, credit card fees grew 28% from a year earlier. FIDUCIARY AND INVESTMENT MANAGEMENT FEES were $102 million, and SERVICE CHARGES AND COMMISSIONS were $218 million for the fourth quarter. NONINTEREST EXPENSE NONINTEREST EXPENSE was $813 million in the fourth quarter, compared with operating expense of $821 million in the year-ago quarter. For the year, operating expense was essentially flat with 1995's level. The fourth-quarter OPERATING EFFICIENCY RATIO was 51.2%, and the full-year ratio was 51.9%. CREDIT QUALITY THE PROVISION FOR CREDIT LOSSES was $190 million for the fourth quarter, versus $185 million for the third quarter and $210 million in the fourth quarter of 1995. A-4 THE ALLOWANCE FOR CREDIT LOSSES stood at $1.407 billion at December 31, representing 537% of total nonperforming loans. TOTAL NET CHARGE-OFFS in the fourth quarter were $190 million, of which $154 million were related to credit card receivables. THE NET CHARGE-OFF RATE FOR MANAGED CREDIT CARD RECEIVABLES was 6.7% for the fourth quarter, up from 5.9% for the third quarter and 4.4% a year ago. For 1996, the managed credit card charge-off rate was 5.8%, versus 4.0% in 1995. THE 30-DAY DELINQUENCY RATIO FOR MANAGED CREDIT CARD RECEIVABLES was 4.5% at year-end, versus 3.6% at year-end 1995. A-5
First Chicago NBD Corporation and Subsidiaries Comparative Summary Three Months Ended December 31 ------------------------------ (Dollars in millions, except per share data) 1996 1995 Change -------- -------- ------ Net interest income--tax-equivalent basis..................... $ 907 $ 864 + 5% Provision for credit losses................................... 190 210 - 10 Noninterest income............................................ 682 655 + 4 Noninterest expense (excludes merger related costs)........... 813 821 - 1 Merger-related costs.......................................... - 267 - Net income.................................................... 377 126 - Earnings per share Primary Net income................................................ $1.15 $0.37 - Average common and common-equivalent shares (in millions). 321.4 320.0 - Fully diluted Net income................................................ $1.14 $0.37 - Average shares, assuming full dilution (in millions)...... 327.6 326.9 - Average balances Loans....................................................... $ 65,494 $ 62,258 + 5% Earning assets.............................................. 87,896 106,187 - 17 Total assets................................................ 102,687 123,773 - 17 Common stockholders' equity................................. 8,421 7,998 + 5 Stockholders' equity........................................ 8,886 8,488 + 5 Net interest margin........................................... 4.11% 3.23% + 27% Return on assets.............................................. 1.46 0.40 - Return on common stockholders' equity......................... 17.5 5.9 - Twelve Months Ended December 31 ------------------------------- (Dollars in millions, except per share data) 1996 1995 Change -------- ----- ------ Net interest income--tax-equivalent basis..................... $ 3,722 3,311 + 12% Provision for credit losses................................... 735 510 + 44 Noninterest income............................................ 2,548 2,591 - 2 Noninterest expense (excludes merger related costs)........... 3,271 3,268 - Merger-related costs.......................................... - 267 - Net income.................................................... 1,436 1,150 + 25 Earnings per share Primary Net income................................................ $4.39 $3.45 + 27 Average common and common-equivalent shares (in millions). 320.2 322.9 - 1 Fully diluted Net income................................................ $4.32 $3.41 + 27 Average shares, assuming full dilution (in millions)...... 328.1 330.1 - 1 Average balances Loans....................................................... $ 64,949 $ 58,944 + 10% Earning assets.............................................. 97,274 105,306 - 8 Total assets................................................ 112,565 122,370 - 8 Common stockholders' equity................................. 8,253 7,765 + 6 Stockholders' equity........................................ 8,736 8,335 + 5 Net interest margin........................................... 3.83% 3.14% + 22% Return on assets.............................................. 1.28 0.94 + 36 Return on common stockholders' equity......................... 17.0 14.3 + 19 At December 31 --------------------------------------- 1996 1995 Change ------ ------ ------ Assets........................................................ $104,619 $122,002 - 14% Loans......................................................... 66,414 64,434 + 3 Deposits...................................................... 63,669 69,106 - 8 Common stockholders' equity................................... 8,563 7,961 + 8 Stockholders' equity.......................................... 9,007 8,450 + 7
FIRST CHICAGO NBD CORPORATION CAPITAL DATA
- ---------------------------------------------------------------------------------------------------------------------------------- 12/31/96 9/30/96 6/30/96 3/31/96 12/31/95 - ---------------------------------------------------------------------------------------------------------------------------------- Common Equity/Assets Ratio (1).................................... 8.2% 8.1% 7.6% 7.3% 6.9% Risk-Based Capital Ratios: (1)(2)................................. Tier 1.......................................................... 9.1% 8.4% 8.1% 8.1% 7.8% Total........................................................... 13.2% 12.4% 12.2% 12.3% 11.8% Leverage Ratio (1)(2)............................................. 9.3% 8.1% 7.6% 7.3% 6.9% Book Value of Common Equity....................................... $27.31 $27.11 $26.31 $25.70 $25.25
(1) Net of investment in First Chicago Capital Markets, Inc. (2) 12/31/96 ratios are estimated. -----END PRIVACY-ENHANCED MESSAGE-----