Add 3A
FIRST UNION CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Six Months Ended
June 30,
(In millions,
except per share data) 1997 1996
INTEREST INCOME
Interest and fees on loans $ 4,090 3,785
Interest and dividends on
securities available for sale 522 610
Interest and dividends on
investment securities
Taxable income 59 67
Nontaxable income 29 39
Trading account interest 113 111
Other interest income 164 158
Total interest income 4,977 4,770
INTEREST EXPENSE
Interest on deposits 1,503 1,475
Interest on short-term
borrowings 603 588
Interest on long-term debt 244 231
Total interest expense 2,350 2,294
Net interest income 2,627 2,476
Provision for loan losses 310 150
Net interest income after
provision for loan losses 2,317 2,326
NONINTEREST INCOME
Trading account profits 80 29
Service charges on
deposit accounts 384 327
Mortgage banking income 104 77
Capital management income 412 264
Securities available for
sale transactions 9 18
Investment security transactions 1 3
Fees for other banking services 77 77
Sundry income 441 277
Total noninterest
income 1,508 1,072
NONINTEREST EXPENSE
Salaries 986 837
Other benefits 239 214
Personnel expense 1,225 1,051
Occupancy 182 176
Equipment 238 191
Advertising 44 21
Telecommunications 54 50
Travel 46 49
Postage, printing and supplies 78 82
FDIC assessment 11 26
Professional fees 41 35
External data processing 29 74
Other intangibles amortization 134 123
Merger-related restructuring
charges - 281
Sundry expense 269 185
Total noninterest
expense 2,351 2,344
Income before income taxes 1,474 1,054
Income taxes 518 372
Net income 956 682
Dividends on preferred stock - 7
Net income applicable to
common stockholders $ 956 675
PER COMMON SHARE DATA (a)
Net income $ 1.70 1.20
Cash dividends $ 0.58 0.52
AVERAGE COMMON SHARES
(In thousands) (a) 563,003 562,950
(a) Common share data has been restated for a two-for-one stock split
declared on June 17, 1997, which is payable on July 31, 1997, to holders
of record as of July 1, 1997.
Add 4
FIRST UNION CORPORATION
LOANS
(Unaudited)
1997 1996
Second First Fourth
(In millions) Quarter Quarter Quarter
COMMERCIAL
Commercial, financial and
agricultural $ 25,018 24,357 23,639
Real estate - construction and
other 2,460 2,600 2,674
Real estate - mortgage 8,980 9,245 9,504
Lease financing 6,724 5,464 4,852
Foreign 1,393 1,089 1,085
Total commercial 44,575 42,755 41,754
RETAIL
Real estate - mortgage 26,400 27,144 28,683
Installment loans - Bankcard (a) 5,418 5,387 5,551
Installment loans - other 19,275 19,001 18,596
Vehicle leasing 3,858 3,704 3,480
Total retail 54,951 55,236 56,310
Total loans 99,526 97,991 98,064
UNEARNED INCOME
Loans 528 511 488
Lease financing 2,587 1,993 1,718
Total unearned income 3,115 2,504 2,206
Loans, net $ 96,411 95,487 95,858
(a) Installment loans - Bankcard include credit card, ICR, signature and
First Choice amounts.
INTANGIBLE ASSETS
(Unaudited)
1997 1996
Second First Fourth
(In millions) Quarter Quarter Quarter
MORTGAGE SERVICING
ASSETS $ 263 234 199
CREDIT CARD PREMIUM $ 29 32 35
OTHER INTANGIBLE ASSETS
Goodwill $ 2,278 2,308 2,359
Deposit base premium 480 510 479
Other 7 9 11
Total $ 2,765 2,827 2,849
Add 4
FIRST UNION CORPORATION
LOANS
(Unaudited)
1996
Third Second
(In millions) Quarter Quarter
COMMERCIAL
Commercial, financial and
agricultural $ 23,791 23,267
Real estate - construction and
other 2,832 2,860
Real estate - mortgage 9,456 9,534
Lease financing 4,255 3,954
Foreign 925 713
Total commercial 41,259 40,328
RETAIL
Real estate - mortgage 26,603 27,229
Installment loans - Bankcard (a) 5,450 5,000
Installment loans - other 17,964 17,625
Vehicle leasing 3,118 2,939
Total retail 53,135 52,793
Total loans 94,394 93,121
UNEARNED INCOME
Loans 440 432
Lease financing 1,434 1,350
Total unearned income 1,874 1,782
Loans, net $ 92,520 91,339
(a) Installment loans - Bankcard include credit card, ICR, signature and
First Choice amounts.
INTANGIBLE ASSETS
(Unaudited)
1996
Third Second
(In millions) Quarter Quarter
MORTGAGE SERVICING
ASSETS $ 134 150
CREDIT CARD PREMIUM $ 38 42
OTHER INTANGIBLE ASSETS
Goodwill $ 1,867 1,919
Deposit base premium 500 530
Other 12 12
Total $ 2,379 2,461
Add 5
FIRST UNION CORPORATION
ALLOWANCE FOR LOAN LOSSES AND NONPERFORMING ASSETS
(Unaudited)
1997 1996
Second First Fourth
(In millions) Quarter Quarter Quarter
ALLOWANCE FOR LOAN LOSSES
Balance, beginning of
period $ 1,366 1,365 1,377
Provision for loan losses 165 145 120
Allowance of loans acquired
or sold, net - - 42
Loan losses, net (161) (144) (174)
Balance, end of period $ 1,370 1,366 1,365
(as % of loans, net) 1.42 % 1.43 1.42
(as % of nonaccrual and
restructured loans) 223 % 199 204
(as % of nonperforming asset 194 % 175 179
LOAN LOSSES
Commercial, financial and
agricultural $ 13 13 31
Real estate - commercial
construction and mortgage 6 7 7
Real estate - residential
mortgage 13 8 6
Installment loans - Bankcard 117 105 93
Installment loans - Bankcard
special adjustment (a) - - 34
Installment loans - other
and Vehicle leasing 38 36 41
Total 187 169 212
LOAN RECOVERIES
Commercial, financial and
agricultural 8 11 12
Real estate - commercial
construction and mortgage 3 1 3
Real estate - residential
mortgage - - 1
Installment loans - Bankcard 7 6 15
Installment loans - other
and Vehicle leasing 8 7 7
Total 26 25 38
Loan losses, net $ 161 144 174
(as % of average loans,
net (b) 0.68 % 0.61 0.75
(as % of average loans, net,
excluding Bankcard) (b) 0.23 % 0.20 0.29
NONPERFORMING ASSETS
Nonaccrual loans
Commercial loans $ 202 221 218
Commercial real estate loans 98 111 118
Consumer real estate loans 181 214 199
Installment loans 133 128 120
Total nonaccrual loans 614 674 655
Restructured loans 2 11 14
Foreclosed properties 92 93 94
Total nonperforming
assets $ 708 778 763
(as % of loans, net and
foreclosed properties) 0.73 % 0.81 0.80
Accruing loans past
due 90 days $ 252 283 290
(a) Installment loans - Bankcard special adjustment includes a fourth
quarter 1996 one-time charge-off related to an anticipated regulatory change
which would reduce the period delinquent loans could be held before
charge-off.
(b) Annualized.
Add 5
FIRST UNION CORPORATION
ALLOWANCE FOR LOAN LOSSES AND NONPERFORMING ASSETS
(Unaudited)
1996
Third Second
(In millions) Quarter Quarter
ALLOWANCE FOR LOAN LOSSES
Balance, beginning of
period $ 1,416 1,436
Provision for loan losses 105 80
Allowance of loans acquired
or sold, net - 2
Loan losses, net (144) (102)
Balance, end of period $ 1,377 1,416
(as % of loans, net) 1.49 % 1.55
(as % of nonaccrual and
restructured loans) 188 % 195
(as % of nonperforming assets 167 % 169
LOAN LOSSES
Commercial, financial and
agricultural $ 25 23
Real estate - commercial
construction and mortgage 11 25
Real estate - residential
mortgage 5 8
Installment loans - Bankcard 97 68
Installment loans - Bankcard
special adjustment (a) - -
Installment loans - other
and Vehicle leasing 38 38
Total 176 162
LOAN RECOVERIES
Commercial, financial and
agricultural 9 42
Real estate - commercial
construction and mortgage 2 7
Real estate - residential
mortgage - -
Installment loans - Bankcard 13 3
Installment loans - other
and Vehicle leasing 8 8
Total 32 60
Loan losses, net $ 144 102
(as % of average loans, net (b)0.64 % 0.45
(as % of average loans, net,
excluding Bankcard) (b) 0.28 % 0.17
NONPERFORMING ASSETS
Nonaccrual loans
Commercial loans $ 294 311
Commercial real estate loans 137 156
Consumer real estate loans 186 163
Installment loans 110 92
Total nonaccrual loans 727 722
Restructured loans 3 4
Foreclosed properties 95 110
Total nonperforming
assets $ 825 836
(as % of loans, net and
foreclosed properties) 0.89 % 0.91
Accruing loans past
due 90 days $ 291 272
(a) Installment loans - Bankcard special adjustment includes a fourth
quarter 1996 one-time charge-off related to an anticipated regulatory change
which would reduce the period delinquent loans could be held before
charge-off.
(b) Annualized.
Add 6
FIRST UNION CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
1997 1996
(In millions, Second First Fourth
except per share data) Quarter Quarter Quarter
ASSETS
Cash and due from banks $ 6,428 5,998 6,509
Interest-bearing bank balances 276 230 316
Federal funds sold and
securities purchased under
resale agreements 6,440 5,019 7,024
Total cash and
cash equivalents 13,144 11,247 13,849
Trading account assets 4,863 3,579 3,934
Securities available for
sale 16,396 14,411 14,182
Investment securities 2,285 2,408 2,501
Loans, net of unearned
income 96,411 95,487 95,858
Allowance for loan losses (1,370) (1,366) (1,365)
Loans, net 95,041 94,121 94,493
Premises and equipment 4,052 4,127 4,073
Due from customers on
acceptances 728 634 763
Other intangible assets 2,765 2,827 2,849
Other assets 3,668 3,376 3,483
Total assets $ 142,942 136,730 140,127
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Noninterest-bearing
deposits 19,033 18,275 18,632
Interest-bearing deposits 73,901 74,128 76,183
Total deposits 92,934 92,403 94,815
Short-term borrowings 27,349 22,335 23,024
Bank acceptances outstanding 728 634 764
Other liabilities 3,703 3,290 3,361
Long-term debt 7,258 7,604 7,660
Total liabilities 131,972 126,266 129,624
Guaranteed preferred beneficial
interests 990 990 495
STOCKHOLDERS' EQUITY
Preferred stock - - -
Common stock, $3.33-1/3 par
value; authorized
750,000,000 shares (a) 1,870 1,866 1,916
Paid-in capital (a) 715 708 1,378
Retained earnings 7,355 7,032 6,727
Unrealized gain (loss) on debt
and equity securities, net 40 (132) (13)
Total stockholders'
equity 9,980 9,474 10,008
Total liabilities and
stockholders'
equity $ 142,942 136,730 140,127
MEMORANDA
Securities available for sale-
amortized cost $ 16,324 14,607 14,194
Investment securities-
market value 2,417 2,522 2,636
Common stockholders' equity,
net of unrealized
gain (loss) on debt and equity
securities $ 9,980 9,474 10,008
Preferred shares outstanding
(In thousands) - - -
Common shares outstanding
(In thousands) (a) 560,977 559,665 574,697
(a) Common share data has been restated for a two-for-one stock split
declared on June 17, 1997, which is payable on July 31, 1997, to holders
of record as of July 1, 1997.
Add 6
FIRST UNION CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
1996
(In millions, Third Second
except per share data) Quarter Quarter
ASSETS
Cash and due from banks $ 6,101 5,456
Interest-bearing bank balance 40 73
Federal funds sold and
securities purchased under
resale agreements 5,660 6,197
Total cash and
cash equivalents 11,801 11,726
Trading account assets 4,779 4,793
Securities available for
sale 13,729 21,835
Investment securities 2,566 2,681
Loans, net of unearned
income 92,520 91,339
Allowance for loan losses (1,377) (1,416)
Loans, net 91,143 89,923
Premises and equipment 3,811 2,863
Due from customers on
acceptances 571 518
Other intangible assets 2,379 2,461
Other assets 3,103 3,086
Total assets $ 133,882 139,886
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Noninterest-bearing
deposits 18,008 16,831
Interest-bearing deposits 73,436 74,622
Total deposits 91,444 91,453
Short-term borrowings 22,910 27,895
Bank acceptances outstanding 571 516
Other liabilities 2,936 2,899
Long-term debt 7,332 7,807
Total liabilities 125,193 130,570
Guaranteed preferred beneficial
interests - -
STOCKHOLDERS' EQUITY
Preferred stock 48 163
Common stock, $3.33-1/3 par
value; authorized
750,000,000 shares (a) 1,803 1,880
Paid-in capital (a) 506 1,188
Retained earnings 6,431 6,231
Unrealized gain (loss) on debt
and equity securities, net (99) (146)
Total stockholders'
equity 8,689 9,316
Total liabilities and
stockholders'
equity $ 133,882 139,886
MEMORANDA
Securities available for sale-
amortized cost $ 13,871 22,051
Investment securities-
market value 2,691 2,797
Common stockholders' equity,
net of unrealized
gain (loss) on debt and equity
securities $ 8,641 9,153
Preferred shares outstanding
(In thousands) 1,911 2,599
Common shares outstanding
(In thousands) (a) 541,015 563,895
(a) Common share data has been restated for a two-for-one stock split
declared on June 17, 1997, which is payable on July 31, 1997, to holders
of record as of July 1, 1997.
Add 7
FIRST UNION CORPORATION
CHANGES IN STOCKHOLDERS' EQUITY
(Unaudited)
1997 1996
Second First Fourth
(In millions) Quarter Quarter Quarter
Balance, beginning of
period $ 9,474 10,008 8,689
Net income 485 471 460
Redemption of preferred stock - - -
Purchase of common stock (28) (836) (36)
Common stock issued for
stock options exercised 40 101 87
Common stock issued through
dividend reinvestment plan - 11 1
Common stock for purchase
accounting acquisitions - 4 884
Cash dividends paid on
Preferred stock - - (1)
Common stock (163) (166) (162)
Unrealized gain (loss) on debt
and equity securities, net 172 (119) 86
Balance, end of period $ 9,980 9,474 10,008
CAPITAL RATIOS
(Unaudited)
1997 1996
Second First Fourth
(In millions) Quarter(a) Quarter Quarter
CONSOLIDATED CAPITAL RATIOS
Tier 1 capital $ 8,135 7,752 7,633
Total capital 13,639 13,027 12,842
Adjusted risk-based assets 110,051 106,451 104,126
Adjusted leverage ratio
assets $ 130,666 126,465 124,419
Ratios
Tier 1 capital 7.39 % 7.28 7.33
Total capital 12.39 12.24 12.33
Leverage 6.23 6.13 6.13
Stockholders' equity to assets
Quarter-end 6.98 6.93 7.14
Average 6.94 % 7.20 6.85
(a) Estimated.
SOURCE First Union Corporation
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