Chase Chemical Exhibits
-
Upload
pulkit-midha -
Category
Documents
-
view
221 -
download
0
Transcript of Chase Chemical Exhibits
-
8/3/2019 Chase Chemical Exhibits
1/20
Acquiror/acquiree Transaction Value ($Bn) Book Market
First Union/First Fidelity 5.4 1.9x 1.3x
First Chicago/NBD 5.3 1.5 1.1
Fleet/Shawmut 3.7 1.8 1.5
PNC/Midlantic 3 2 1.3US Bancorp/West One 1.6 2 1.4
NAB/Michigan National 1.9 1.2
Boatmens/Fourth financial 1.8 1.1
Major bank Mergers announced in 1995
Price To
-
8/3/2019 Chase Chemical Exhibits
2/20
BOA 234 Chase (TCB 302 First Chicago/NBD 115
Wells 104 NationsBa 234 Banc One 96
US Bancor 32 BOA 234 Norwest 74
bancorp H 13 Banc One 96 KeyCorp 65National City 49
First Bank System 37
Comerica 35
First of America 23
Huntington 20
Firstar 19
Fifth Third 19
Mercantile 18
Old Kent 12
Geographic Markets Served by the Top 50 U.S. Banks, by Assets (billions of dollars)
West Plains/Mountain Midwest
-
8/3/2019 Chase Chemical Exhibits
3/20
NationsBank 234 Vchase 302
First Union 131 citicorp 264
Sun Trust 47 First Union 131
Wachovia 45 Fleet 103Barnett 42 PNC 73
SouthTrust 21 BKB 58
Southern National 20 BONY 53
AmSouth 18 CoreStates 44
Mercantile 18 Mellon 42
Crestar 18 State Street 27
First Tennessee 13 Summit 22
Union Planters 11 HSBC 22
Central Fidelity 11
NortheastSouth
-
8/3/2019 Chase Chemical Exhibits
4/20
Rank Sharea Rank Share Branches
Chemical 1 55% 1 29% 282
Chase 3 30% 2 12% 184
Citicorp 4 29% 4 7% 212Bank of New York 2 31% 5 7% 237
NatWest N.R. N.R. 3 7% 131
Merrill Lynch 5 23% N.R. N.R. N.R.
Top Credit Card Issuers (1994) Rank Cards Outstandings
Citibank 1 34 $39.00
Discover Card 2 42.6 20.9
MBNA 3 16 17.6
AT&T Universal 4 22 12.3
First Chicago 5 18.3 12.2
First USA 6 8.8 11
Household Bank 7 15 10.8
Chase 8 13.3 10.4
Chemical 9 9.8 8.9
American Express 10 25.3 8.1
Mortgage Originations (first half 1995) Rank Originatio Share
Countrywide 1 $13.10 4.50%
Norwest 2 12.3 4.2
Prudential 3 5.7 2
Fleet 4 5.5 1.9
Chase 5 5.3 1.8
Chemical 6 4.9 1.7
NationsBank 7 4.1 1.4
Great Western Bank 8 4 1.4
BankAmerica 9 3.9 1.3
GMAC Mortgage 10 3.3 1.1
Mortgage Servicing (June 30, 1995) Rank Servicing
Countrywide 1 $121.20
GE Mortgage 2 109.4
Norwest 3 100.5
Fleet 4 99.8
Prudential 5 77.8
NationsBank 6 77.5
Comparative Market Share Data: Tri-State Regional Banking (Top Five Rankings fo
Comparative Market Share Data: National Consumer Business (dollar
amounts in $ billions)
Relationship Share Lead Share
Downstate New York Middle Market New Y
-
8/3/2019 Chase Chemical Exhibits
5/20
Chase 7 73.6
BankAmerica 8 57.1
Chemical 9 51.9
Home Savings 10 49.5
Bank Mutual Fund Assets Under Mana Rank Servicing
Mellon 1 $68.00
PNC Bank 2 22.4
NationsBank 3 14.7
Wells Fargo 4 10.6
Chase 10 7
Chemical 13 5.7
Loan Syndications - Agent Only(first ha Rank Agent VoluNo. of dealShareChemical 1 $132 162 24%
J.P. Morgan 2 68 73 12
Citicorp 3 56 101 10
BankAmerica 4 52 115 9
Chase 5 46 94 8
NationsBank 6 27 94 5
First Chicago 7 22 62 4
Bank of New York 8 22 38 4
Bankers Trust 9 22 59 4
Bank of Nova Scotia 10 11 20 2
Comparative Market Share Data: Other Businesses (dollaramounts in $
billions)
-
8/3/2019 Chase Chemical Exhibits
6/20
Rank Share
1 14%
3 6%
2 13%4 4%
5 3%
N.R. N.R.
1994)
rk 9 County Consumer Share
Deposit Share
-
8/3/2019 Chase Chemical Exhibits
7/20
Aggreagte Amounts
outstanding for Banks Banks Main competitors
Deposit rate $453 2.71% 5.05%
Credit card loan rate 240 16.00% 14.00%Small business loan rate spread 300 6.00% 3.00%
Avg. US rates Paid or charged
1995 interest rates comparison
-
8/3/2019 Chase Chemical Exhibits
8/20
Chemical Chase BankAmer Nationsba First UnionBanc One J.P. Morga
Income Statement Data
Interest Income 9,088 8,134 12,384 10,529 5,095 6,437 8,379
Non-interest Income 3,597 3,053 4,147 2,597 1,159 1,420 3,536
Interest Expense 4,414 4,445 4,842 5,318 2,061 2,249 6,398
Non-interest Expense 5,509 4,472 7,512 4,942 2,677 3,847 3,692Net Income 1,294 1,205 2,176 1,609 925 1,005 1,215
EPS (incl. extraordinry income a 4.64 5.87 5.33 6.12 5.22 2.42 6.02
Performance Ratios
Return on Average Assets 0.78% 1.01% 1.08% 1.02% 1.27% 1.15% 0.70%
Return on Average Common Eq 12.32% 15.79% 13.20% 16.10% 17.04% 13.35% 12.90%
Efficiency Ratio 63.00% 66.33% 64.27% 62.54% 62.47% 64.60% 66.92%
Non Performing asstes as % of t 0.66% 1.03% 0.67% 0.72% 0.52% 0.14%
Balance Sheet Data Data
Total Assets 171,423 114,038 215,475 169,604 77,314 88,923 154,917
Total Loans 78,767 63,038 137,222 103,371 53,051 61,096 20,949
Total Deposits 96,506 69,956 154,394 100,470 58,958 68,090 43,085
Total Liabilities (Total Debt) 160,711 105,679 196,584 158,593 71,916 81,358 145,349
Risk based Capital Ratio - Tier 1 8.20% 8.30% 7.27% 7.43% 7.76% 9.93% 9.60%
- Total 12.35% 12.78% 11.69% 11.47% 12.94% 13.33% 14.20%
Market Data
Common Stock - High 42.13 40 50.25 57.38 47.63 44.73 79.38
Price - Low 33.63 30.38 38.38 43.38 39.38 24.13 55.13
Number Shares, year end (in M 244.5 181.2 371.2 276.4 176 396.9 187.7
Market value/share 35.88 34.38 39.5 45.13 41.38 25.38 56.13
Book value/share 37.88 39.28 42.63 39.43 30.66 18.43 46.73
Market-to-book ratio 94.72% 87.51% 92.66% 114.44% 134.95% 137.71% 120.10%Other
Headquarters (City/State) New York, New York, San Franco Charlotte, Charlotte, Columbus, New York,
Employees 42,130 35,774 98,600 61,484 31,858 48,800 17,055
Comparables analysis, December 31, 1994( dollar amnts in Mn)
-
8/3/2019 Chase Chemical Exhibits
9/20
Y
-
8/3/2019 Chase Chemical Exhibits
10/20
Estimated Impact of Merger between
Target Bank $ Millions
As % of Target's Premerger
Expenses
Chemical's
ownership at
Current Market
Price of
Impact on
Chemical's
EPSbChase $1,500 34% 59% 31%
BankAmerica 655 13 40 8
NationsBank 539 10 45 9
First Unionc 185 7 60 3
Banc One 350 10 51 -1
J.P. Morgan 587 15 50 -2
Estimated reduction in non interest Expense
-
8/3/2019 Chase Chemical Exhibits
11/20
Chemical and selected banks
Impact on Target's EPSb44%
12
10
7
18
34
-
8/3/2019 Chase Chemical Exhibits
12/20
Planned Saves as % of combined Expense
base
GlobalBank 19%
GlobalServices 12%
Tri-StateRegional 16%NationalColnsumer 16%
TCB(Texas) 0%
TotalRegional&NationalConsumer 13%
CentralInformationTechnology&O 25%
Corporate Functions 29%
Miscellaneous
Total 18%
SavesasPercentofSmallerBase(Cha 38%
OneTimePre-TaxRestructuringCharges
RelatedExpensesTotal
Targeted Merger Saves, Pre Ta (Doll
-
8/3/2019 Chase Chemical Exhibits
13/20
Forecasted Dollar savings reduction in FTE
$560 3,600
$150 1,400
$250 2,600$280 2,700
0 0
$530 5,300
$240 1,000
$190 1,200
$30
$1,700 12,500
$1,650
$250$1,900
ar amounts in $ millions)
-
8/3/2019 Chase Chemical Exhibits
14/20
-
8/3/2019 Chase Chemical Exhibits
15/20
1997 1998 1999 2000
9,394 9,936 10,510 11,119
5,185 5,433 5,689 5,953
4,209 4,503 4,821 5,166
750 800 850 900
17 17 17 173,442 3,686 3,954 4,249
1,343 1,438 1,542 1,657
2,099 2,248 2,412 2,592
0 0 0 0
2,099 2,248 2,412 2,592
100 100 100 100
$1,999 $2,148 $2,312 $2,492
$13,229 $14,626 $16,128 $17,748
198,655 208,588 219,017 229,968
102,000 106,774 111,780 117,016
260.9 260.9 260.9 260.9
1997 1998 1999 2000
7,434 7,880 8,351 8,856
4,768 4,943 5,124 5,313
-400 -400 -400 -400
4,368 4,543 4,724 4,913
3,067 3,336 3,627 3,943
500 525 546 5670 0 0 0
2,567 2,811 3,081 3,376
1,026 1,124 1,234 1,351
1,542 1,687 1,847 2,025
0 0 0 0
1,541 1,687 1,847 2,025
123 123 123 123
$1,419 $1,564 $1,724 $1,902
$9,413 $10,430 $11,550 $12,787
142,462 150,385 158,777 167,67474,471 78,725 83,222 87,977
189.9 189.9 189.9 189.9
xcept per share amounts)
ept per share amounts)
-
8/3/2019 Chase Chemical Exhibits
16/20
Month-End Chemical Chase
Jan 94 39.5 36.13
Feb 94 37.25 32.63
Mar 94 36.38 32.25
Apr 94 34.75 34
May 94 38.38 37.75Jun 94 38.5 38.25
Jul 94 38.38 36.88
Aug 94 38.75 37.75
Sept 94 35 34.63
Oct 94 38 36
Nov 94 36.38 35.63
Dec 94 35.88 34.38
Jan 95 39 33.13
Feb 95 40.13 35.88
Mar 95 37.75 35.63
Apr 95 41.75 43.75
May 95 46.13 46.25
Jun 95 47.25 47
Jul 95 51.63 53.63
Stock Price History
-
8/3/2019 Chase Chemical Exhibits
17/20
Income Statement Data 1994 1993 1992 1991a 1990 1989
Interest Income 9,088 8,403 9,148 11,282 6,511 6,823
Non-interest Income 3,597 4,024 3,026 2,846 1,456 1,404
Interest Expense 4,414 3,767 4,550 7,169 4,460 4,806
Non-interest Expense 5,509 5,293 4,930 5,324 2,623 2,740
Provision for Loan losses 550 1,259 1,365 1,345 537 1,135Net Income 1,294 1,604 1,086 154 291 -482
Restructuring Change 308 158 0 625 52 0
EPS (incl. extraordinry inc 4.64 5.63 3.9 0.11 2.38 -8.29
Performance Ratios
Return on Average Assets 0.78% 1.11% 0.78% 0.11% 0.37% n.m.
Return on Average Comm 12.32% 16.66% 12.36% 0.33% 7.08% n.m.
Efficiency Ratio 63% 58% 61% 65% 75% 80%
Non Performing asstes as 0.66% 2.35% 4.36% 4.43% 4.50% 4.59%
Balance Sheet DataTotal Assets 171,423 149,888 139,655 138,930 73,019 71,513
Total Loans 78,767 75,381 82,010 84,237 45,131 44,512
Total Deposits 96,506 98,277 94,173 92,950 48,951 50,151
Total Liabilities (Total Deb 160,711 138,724 129,084 131,649 69,112 67,808
Market Data
Common Stock Price, yea 35.88 40.13 38.63 21.25 10.75 29.88
Other
Employee 42,130 41,567 39,687 43,169 26,689 29,139
Income Statement Data 1,994 1,993 1,992 1991a 1,990 1,989
Interest Income 8,134 8,468 8,705 9,638 11,572 11,959
Non-interest Income 3,053 2,949 2,420 2,202 2,100 1,945
Interest Expense 4,445 4,605 5,141 6,293 8,384 8,934
Non-interest Expense 4,472 4,520 3,939 3,818 4,119 3,702
Provision for Loan losses 500 1,561 1,220 1,085 1,300 1,737
Net Income 1,205 966 639 520 -334 -665
Restructuring Change 0 205 0 0 220 38EPS (incl. extraordinry inc 5.87 4.79 3.46 3.12 -3.31 -7.94
Performance Ratios
Return on Average Assets 1.01% 0.94% 0.64% 0.52% n.m. n.m.
Return on Average Comm 15.79% 14.59% 11.14% 10.49% n.m. n.m.
Efficiency Ratio 66.33% 66.35% 65.83% 68.83% 77.89% 74.49%
Non Performing asstes as 0.60% 1.00% 4.00% 4.40% 4.60% 3.60%
Chemical 10 year financial summary
Chase ten year financial summary
-
8/3/2019 Chase Chemical Exhibits
18/20
Balance Sheet Data
Total Assets 114,038 102,103 95,862 98,197 98,064 107,369
Total Loans 63,038 60,493 62,558 67,785 74,727 76,692
Total Deposits 69,956 71,509 67,224 71,517 70,713 69,073
Total Liabilities (Total Deb 105,679 93,981 89,298 92,820 93,279 102,371
Market DataCommon Stock Price, yea 34.38 33.88 28.5 17.25 10.5 34.75
Other
Employee 35,774 34,390 34,540 36,210 38,470 41,610
-
8/3/2019 Chase Chemical Exhibits
19/20
1988 1987 1986 1985
6,220 5,470 4,520 4,883
1,424 1,285 968 768
3,913 3,500 2,850 3,311
2,460 2,476 1,708 1,532
364 1,492 439 281754 -854 402 390
11 135 0 0
12.02 -16.68 7.57 7.33
0.99% n.m. 0.70% 0.70%
27.74% n.m. 14.22% 15.06%
66% 76% 65% 65%
n.a. n.a. n.a. n.a.
67,349 78,189 60,564 56,990
41,590 49,800 39,425 39,096
47,966 55,509 39,055 34,505
63,382 75,186 63,382 75,186
31 21.38 42.25 45.38
27,225 28,597 20,993 19,691
1,988 1,987 1,986 1,985
10,112 8,839 7,717 8418.00
2,252 1,906 1,743 1,316
6,850 5,858 4,721 5,669
3,431 3,455 3,301 2,732
750 2,150 595 435
1,059 -895 585 565
48 63 30 011.55 -11.56 6.63 6.39
1.11% n.m. 0.65% 0.65%
27.75% n.m. 13.29% 13.64%
62.22% 70.69% 69.65% 67.21%
4.20% 4.30% 2.00% 2.30%
-
8/3/2019 Chase Chemical Exhibits
20/20
97,455 99,206 94,838 87,685
69,602 67,979 66,220 61,931
64,057 68,578 66,003 61,353
92,495 95,220 89,822 83,227
28.63 22.13 35.63 36.31
41,570 42,390 47,480 46,450