Definitions and Methodology Data Sources: Data are provided by SNL Securities, Charlottesville, Va. The SNL data were taken from SNL Bank DataSource, which contains GAAP financials on market and per share data on all publicly traded commercial banks and bank holding companies as well as the large foreign-bank owned holding companies. In addition, data from American Banker s quarterly earnings roundup are also used.

A listing of the 63 banking companies in the study appears above. The companies are divided into three peer groups: peer group 1 - 10 mega banking companies (defined above) peer group 2 - 25 superregional banking firms (defined above); and peer group 3 - 28 large regional banking companies (defined above). In the table above, entitled Performance Study Peer Groups, the companies are listed in order of their asset size on March 31, 1995, within their respective peer group.

In the table appearing on the preceding page, within peer groups the banks are ranked by three measures of performance: the return on average assets; the return on average equity; and nonperforming assets as a percentage of total assets. All performance ratios are calculated on an after accounting change basis.

The return on average assets is net income after taxes divided by average assets for the period. The return on average common equity is net income after taxes minus preferred stock dividendsdivided by average common shareholders equity for the period.

Nonperforming assets ratio is nonperforming assets as a percentage of end of period assets. Nonperforming assets are the sum of nonaccrual loans, restructured loans and other real estate owned net of reserves.

Market-to-book value is the stock price on Dec. 30, divided by the publicly reported book value per share on Dec. 30.

The price earnings multiple is the stock price, as defined above, as a multiple of fully diluted earnings per share.

The dividend yield is the indicated annual dividend as a percentage of the yearend price..

The group means are unweighted means calculated by American Banker by summing all of the values within a peer group and dividing that number by the total number of observations. The median is obtained by finding the midpoint of the array of values. All rankings, means, and medians for 1994, are for the current report panels. Compiled by American Banker, 1995.

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