Chase Chemical Exhibits

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Major bank Mergers announced in 1995
Acquiror/acquiree
First Union/First Fidelity
First Chicago/NBD
Fleet/Shawmut
PNC/Midlantic
US Bancorp/West One
NAB/Michigan National
Boatmen’s/Fourth financial

Transaction Value ($Bn)

Book
5.4 1.9x
5.3
3.7
3
1.6
1.9
1.8

Price To
Market
1.3x
1.5
1.8
2
2
1.2
1.1

1.1
1.5
1.3
1.4

Geographic Markets Served by the Top 50 U.S. Banks, by Assets (billions of dollars)
West
BOA
Wells
US Bancorp
bancorp Hawaii

234
104
32
13

Plains/Mountain
Chase (TCB)
302
NationsBank
234
BOA
234
Banc One
96

Midwest
First Chicago/NBD
Banc One
Norwest
KeyCorp
National City
First Bank System
Comerica
First of America
Huntington
Firstar
Fifth Third
Mercantile
Old Kent

115
96
74
65
49
37
35
23
20
19
19
18
12

South
NationsBank
First Union
Sun Trust
Wachovia
Barnett
SouthTrust
Southern National
AmSouth
Mercantile
Crestar
First Tennessee
Union Planters
Central Fidelity

Northeast
234
131
47
45
42
21
20
18
18
18
13
11
11

Vchase
citicorp
First Union
Fleet
PNC
BKB
BONY
CoreStates
Mellon
State Street
Summit
HSBC

302
264
131
103
73
58
53
44
42
27
22
22

Chemical
Chase
Citicorp
Bank of New York
NatWest
Merrill Lynch

Comparative Market Share Data: Tri-State Regional Banking (Top Five Rankings for 1994)
Downstate New York Middle Market
New York 9 County Con
Relationship Share
Lead Share
Deposit Sha
Rank
Sharea
Rank
Share
Branches
1
55%
1
29%
282
3
30%
2
12%
184
4
29%
4
7%
212
2
31%
5
7%
237
N.R.
N.R.
3
7%
131
5
23% N.R.
N.R.
N.R.

Comparative Market Share Data: National Consumer Business (dollar
amounts in $ billions)
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
Countrywide
Norwest
Prudential
Fleet
Chase
Chemical
NationsBank
Great Western Bank
BankAmerica
GMAC Mortgage
Mortgage Servicing (June 30, 1995)
Countrywide
GE Mortgage
Norwest
Fleet
Prudential
NationsBank

1
2
3
4
5
6
7
8
9
10

Rank
1
2
3
4
5
6

OriginationsShare
$13.10
4.50%
12.3
4.2
5.7
2
5.5
1.9
5.3
1.8
4.9
1.7
4.1
1.4
4
1.4
3.9
1.3
3.3
1.1
Servicing
$121.20
109.4
100.5
99.8
77.8
77.5

Chase
BankAmerica
Chemical
Home Savings

7
8
9
10

73.6
57.1
51.9
49.5

Comparative Market Share Data: Other Businesses (dollar
amounts in $
billions)
Bank Mutual Fund Assets Under Management
Rank (march
Servicing
31,1995)
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 halfRank
1995)
Chemical
J.P. Morgan
Citicorp
BankAmerica
Chase
NationsBank
First Chicago
Bank of New York
Bankers Trust
Bank of Nova Scotia

1
2
3
4
5
6
7
8
9
10

Agent Volume
No. of dealsShare
$132
162
24%
68
73
12
56
101
10
52
115
9
46
94
8
27
94
5
22
62
4
22
38
4
22
59
4
11
20
2

Rankings for 1994)
New York 9 County Consumer Share
Deposit Share
Rank
Share
1
14%
3
6%
2
13%
4
4%
5
3%
N.R.
N.R.

1995 interest rates comparison
Avg. US rates Paid or charged

Deposit rate
Credit card loan rate
Small business loan rate spread

Aggreagte Amounts
outstanding for Banks Banks
Main competitors
$453
2.71%
5.05%
240
16.00%
14.00%
300
6.00%
3.00%

Comparables analysis, December 31, 1994( dollar amnts in Mn)
Chemical Chase
BankAmerica
Nationsbank
First Union Banc One J.P. Morgan
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
3,692
Net Income
1,294
1,205
2,176
1,609
925
1,005
1,215
EPS (incl. extraordinry income and charges)
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 Equity12.32%
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 total assets
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 Mn)
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, NY
New York, NY
San Francoisco,
Charlotte,
CA NC
Charlotte, NC
Columbus, OH
New York, NY
Employees
42,130
35,774
98,600
61,484
31,858
48,800
17,055

J.P. Morgan

New York, NY

Estimated

Impact

of

Merger

between

Estimated reduction in non interest Expense

Target Bank
Chase
BankAmerica
NationsBank
First Unionc
Banc One
J.P. Morgan

As % of Target's Premerger
Expenses

$ Millions
$1,500
655
539
185
350
587

34%
13
10
7
10
15

Chemical's
ownership at
Impact on
Current Market Chemical's
Price of
EPSb
59%
31%
40
8
45
9
60
3
51
-1
50
-2

Chemical and selected banks

Impact on Target's EPSb
44%
12
10
7
18
34

Targeted Merger Saves, Pre Ta (Dollar amounts in $ millions)
Planned Saves as % of combined Expense
base
GlobalBank
19%
GlobalServices
12%
Tri-StateRegional
16%
NationalColnsumer
16%
TCB(Texas)
0%
TotalRegional&NationalConsumerBusiness
13%
CentralInformationTechnology&Operations
25%
Corporate Functions
29%
Miscellaneous
Total
18%
SavesasPercentofSmallerBase(Chase)
38%
OneTimePre-TaxRestructuringCharges
RelatedExpenses
Total

Pre Ta (Dollar amounts in $ millions)

Forecasted Dollar savings

reduction in FTE
$560
$150
$250
$280
0
$530
$240
$190
$30
$1,700
$1,650
$250
$1,900

3,600
1,400
2,600
2,700
0
5,300
1,000
1,200
12,500

Stand alone Financial Projections - Chemicals (millions of dollars, except per share
1994
1995
1996
Total revenues
8,272
8,404
8,800
Expenses excluding ORE
5,159
4,959
4,943
Income Before Provision
3,113
3,445
3,858
Provision
550
500
650
ORE
41
-12
17
NEBT
2,522
2,957
3,191
Taxes
1,046
1,141
1,244
Operating Income
1,476
1,816
1,946
Extraordinary
-180
-11
0
Reported Income
1,296
1,805
1,946
Preferred dividends
138
100
100
Net Income applicable to Common
$1,158
$1,705
$1,846
Common equity
Period-end assets
Period-end loans
Average shares

$9,262
171,423
78,767
249.3

$10,730
178,655
88,000
260.9

$11,930
188,655
94,000
260.9

Stand alone Financial Projections - Chase (millions of dollars, except per share am
1994
1995
1996
Total Revenues
6,659
6,525
7,014
Expenses excluding Savings and IRE
4,308
4,457
4,600
Focus Savings
0
0
-400
Net Expenses
4,308
4,457
4,200
Income before provision
2,351
2,068
2,814
Provision
500
360
450
ORE
7
-30
0
NEBT
1,844
1,738
2,364
Taxes
589
695
945
Operating Income
1,255
1,043
1,419
Extraordinary
-50
-240
0
Reported Income
1,205
803
1,419
Preferred dividends
127
123
123
Net Income Applicable to Common
$1,078
$680
$1,296
Common equity
Period-end assets
Period-end loans
Average shares
S

$6,959
114,038
63,038
183.6

$7,649
127,007
66,639
189.9

$8,491
134,992
70,446
189.9

of dollars, except per share amounts)
1997
1998
1999
9,394
9,936
10,510
5,185
5,433
5,689
4,209
4,503
4,821
750
800
850
17
17
17
3,442
3,686
3,954
1,343
1,438
1,542
2,099
2,248
2,412
0
0
0
2,099
2,248
2,412
100
100
100
$1,999
$2,148
$2,312
$13,229
198,655
102,000
260.9

$14,626
208,588
106,774
260.9

2000
11,119
5,953
5,166
900
17
4,249
1,657
2,592
0
2,592
100
$2,492

$16,128
219,017
111,780
260.9

$17,748
229,968
117,016
260.9

dollars, except per share amounts)
1997
1998
7,434
7,880
4,768
4,943
-400
-400
4,368
4,543
3,067
3,336
500
525
0
0
2,567
2,811
1,026
1,124
1,542
1,687
0
0
1,541
1,687
123
123
$1,419
$1,564

1999
8,351
5,124
-400
4,724
3,627
546
0
3,081
1,234
1,847
0
1,847
123
$1,724

2000
8,856
5,313
-400
4,913
3,943
567
0
3,376
1,351
2,025
0
2,025
123
$1,902

$9,413
142,462
74,471
189.9

$11,550
158,777
83,222
189.9

$12,787
167,674
87,977
189.9

$10,430
150,385
78,725
189.9

Month-End
Jan 94
Feb 94
Mar 94
Apr 94
May 94
Jun 94
Jul 94
Aug 94
Sept 94
Oct 94
Nov 94
Dec 94
Jan 95
Feb 95
Mar 95
Apr 95
May 95
Jun 95
Jul 95

Stock Price History
Chemical Chase
39.5
36.13
37.25
32.63
36.38
32.25
34.75
34
38.38
37.75
38.5
38.25
38.38
36.88
38.75
37.75
35
34.63
38
36
36.38
35.63
35.88
34.38
39
33.13
40.13
35.88
37.75
35.63
41.75
43.75
46.13
46.25
47.25
47
51.63
53.63

Income Statement Data
1994
1993
Interest Income
9,088
8,403
Non-interest Income
3,597
4,024
Interest Expense
4,414
3,767
Non-interest Expense
5,509
5,293
Provision for Loan losses
550
1,259
Net Income
1,294
1,604
Restructuring Change
308
158
EPS (incl. extraordinry income and
4.64
charges) 5.63
Performance Ratios
Return on Average Assets
0.78%
1.11%
Return on Average Common Equity
12.32%
16.66%
Efficiency Ratio
63%
58%
Non Performing asstes as % of total
0.66%assets 2.35%

Chemical 10 year financial summary
1992 1991a
1990
1989
9,148
11,282
6,511
6,823
3,026
2,846
1,456
1,404
4,550
7,169
4,460
4,806
4,930
5,324
2,623
2,740
1,365
1,345
537
1,135
1,086
154
291
-482
0
625
52
0
3.9
0.11
2.38
-8.29

0.78%
12.36%
61%
4.36%

0.11%
0.33%
65%
4.43%

0.37% n.m.
7.08% n.m.
75%
80%
4.50%
4.59%

Balance Sheet Data
Total Assets
171,423
Total Loans
78,767
Total Deposits
96,506
Total Liabilities (Total Debt) 160,711

149,888
75,381
98,277
138,724

139,655
82,010
94,173
129,084

138,930
84,237
92,950
131,649

73,019
45,131
48,951
69,112

71,513
44,512
50,151
67,808

Market Data
Common Stock Price, year End 35.88

40.13

38.63

21.25

10.75

29.88

41,567

39,687

43,169

26,689

29,139

Other
Employee

42,130

Income Statement Data
1,994
1,993
Interest Income
8,134
8,468
Non-interest Income
3,053
2,949
Interest Expense
4,445
4,605
Non-interest Expense
4,472
4,520
Provision for Loan losses
500
1,561
Net Income
1,205
966
Restructuring Change
0
205
EPS (incl. extraordinry income and
5.87
charges) 4.79
Performance Ratios
Return on Average Assets
1.01%
0.94%
Return on Average Common Equity
15.79%
14.59%
Efficiency Ratio
66.33%
66.35%
Non Performing asstes as % of total
0.60%assets 1.00%

Chase ten year financial summary
1,992 1991a
1,990
1,989
8,705
9,638
11,572
11,959
2,420
2,202
2,100
1,945
5,141
6,293
8,384
8,934
3,939
3,818
4,119
3,702
1,220
1,085
1,300
1,737
639
520
-334
-665
0
0
220
38
3.46
3.12
-3.31
-7.94

0.64%
11.14%
65.83%
4.00%

0.52% n.m.
n.m.
10.49% n.m.
n.m.
68.83%
77.89%
74.49%
4.40%
4.60%
3.60%

Balance Sheet Data
Total Assets
114,038
Total Loans
63,038
Total Deposits
69,956
Total Liabilities (Total Debt) 105,679

102,103
60,493
71,509
93,981

95,862
62,558
67,224
89,298

98,197
67,785
71,517
92,820

98,064
74,727
70,713
93,279

107,369
76,692
69,073
102,371

Market Data
Common Stock Price, year End 34.38

33.88

28.5

17.25

10.5

34.75

34,390

34,540

36,210

38,470

41,610

Other
Employee

35,774

ummary
1988
6,220
1,424
3,913
2,460
364
754
11
12.02

1987
5,470
1,285
3,500
2,476
1,492
-854
135
-16.68

1986
4,520
968
2,850
1,708
439
402
0
7.57

0.99% n.m.
0.70%
27.74% n.m.
14.22%
66%
76%
65%
n.a.
n.a.
n.a.
n.a.

1985
4,883
768
3,311
1,532
281
390
0
7.33

0.70%
15.06%
65%

67,349
41,590
47,966
63,382

78,189
49,800
55,509
75,186

60,564
39,425
39,055
63,382

56,990
39,096
34,505
75,186

31

21.38

42.25

45.38

27,225

28,597

20,993

19,691

1,988
10,112
2,252
6,850
3,431
750
1,059
48
11.55

1,987
8,839
1,906
5,858
3,455
2,150
-895
63
-11.56

1,986
7,717
1,743
4,721
3,301
595
585
30
6.63

1,985
8418.00
1,316
5,669
2,732
435
565
0
6.39

1.11% n.m.
27.75% n.m.
62.22%
70.69%
4.20%
4.30%

0.65%
13.29%
69.65%
2.00%

0.65%
13.64%
67.21%
2.30%

mmary

97,455
69,602
64,057
92,495

99,206
67,979
68,578
95,220

94,838
66,220
66,003
89,822

87,685
61,931
61,353
83,227

28.63

22.13

35.63

36.31

41,570

42,390

47,480

46,450

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