BANK MERGER MANIA : Creating America’s Biggest Bank
The $11-billion stock swap between Chase Manhattan Corp. and Chemical Banking Corp. would have create the largest bank in the United States. A look at both banks and how the combined company would compare to other banks:
CHEMICAL BANKING CORP.
* Rank: Fourth-largest U.S. bank
* Assets: $178.5 billion
* 1994 net income: $1.29 billion
* Employees: 42,130
* Branches: 297
CHASE MANHATTAN CORP.
* Rank: Sixth-largest U.S. bank
* Assets: $118.7 billion
* 1994 net income: $1.2 billion
* Employees: 33,535
* Branches: 324
NEW CHASE MANHATTAN CORP.
* Rank: Largest U.S. bank
* Assets: $297.3 billion
* Employees: 75,000, but the companies say about 12,000 positions will be eliminated as a result of the merger.
* Branch closings: Of the approximately 480 branches in the New York metropolitan area, about 100 are expected to close.
Ranking in key businesses:
* No. 1 in mortgage servicing, including collecting payments and foreclosing; global loan syndication, in which the bank puts together financing for major borrowers; global custody, or securities record-keeping, and trading revenue
* No. 3 in home lending
* No. 4 in credit cards
A Look at California’s Biggest
Each of California’s Big Three banks enjoys advantages that could help it prosper amid the current merger mania sweeping the industry. Here’s a look at what analysts describe as their strengths:
BANKAMERICA CORP.
* Strong retail branch system--1,939 in 10 states
* Extensive global operations
* Acquisition of Continental Bank in 1994, which has boosted earnings, drawn raves as model merger
* New high-technology ventures MECA Software and SmartCash, which will improve efficiency
Earnings, in billions of dollars:
1994: $2.2
FIRST INTERSTATE BANCORP
* Strength in the western region, with 1,142 retail branches in 13 states
* Improved credit quality and lean expense-to-revenue ratio
* Strong new chief executive in William Siart
Earnings, in millions of dollars:
1994: $733.5
WELLS FARGO & CO.
* Strong stock price--2.6 times book value--which adds to its ability to acquire other banks
* Commonly perceived as the nation’s best-managed, most productive large banking company
* Progress in developing lower-cost alternative delivery systems such as ATMs in supermarkets and banking by telephone
Earnings, in millions of dollars:
1994: $841
Sources: Bloomberg Business News, Associated Press, company reports. Researched by JENNIFER OLDHAM / Los Angeles Times
