Top US Bank Holding Company Financial Analysis

+++ as of 12/31/97

part 1 of 3

Market- Price/98

Ticker to-book EPS est.

AmSouth Bancorp., Birmingham, Ala. ASO 3.26 17.75

Associated Banc-Corp., Green Bay, Wis. ASBC 3.41 17.56

Banc One Corp., Columbus, Ohio ONE 2.82 12.47

Bank of New York Co. BK 4.62 18.77

BankAmerica Corp., San Francisco BAC 2.63 14.75

BankBoston Corp., Boston BKB 3.16 14.68

Bankers Trust New York Corp. BT 2.28 13.18

BB&T Corp., Winston-Salem, N.C. BBK 3.89 18.57

Chase Manhattan Corp., New York CMB 2.3 11.2

Citicorp, New York CCI 2.98 13.02

Comerica Inc., Detroit CMA 3.75 16.96

Commerce Bancshares, Kansas City, Mo. CBSH 2.67 17.69

Compass Bancshares, Birmingham, Ala. CBSS 3.09 16.7

Crestar Financial Corp., Richmond CF 3.08 18.27

Fifth Third Bancorp, Cincinnati FITB 5.57 28

First American Corp., Nashville FATN 3.19 19.06

First Chicago NBD Corp. FCN 3.16 15.24

First Empire State Corp., Buffalo FES 3.11 16.82

First Security Corp., Salt Lake City FSCO 3.68 20.94

First Tennessee National Corp., Memphis FTEN 2.24 19.29

First Union Corp., Charlotte, N.C. FTU 2.71 13.14

Firstar Corp., Milwaukee FSR 3.64 19.2

Fleet Financial Group, Boston FLT 2.67 14.5

Hibernia Corp., New Orleans HIB 2.61 16.85

Huntington Bancshares, Columbus, Ohio HBAN 3.44 18.27

J.P. Morgan & Co., New York JPM 2.09 13.39

KeyCorp, Cleveland KEY 3 15.1

Marshall & Ilsley Corp., Milwaukee MRIS 4.35 22.67

MBNA Corp., Wilmington, Del. KRB 7.8 28.7

Mellon Bank Corp., Pittsburgh MEL 4.21 18.89

Mercantile Bancorp., St. Louis MTL 3.33 19.97

National City Corp., Cleveland NCC 3.5 16.44

NationsBank Corp., Charlotte, N.C. NB 2.07 12.97

Northern Trust Corp., Chicago NTRS 4.8 23.02

Norwest Corp., Minneapolis NOB 4.58 19.57

Old Kent Financial Corp., Grand Rapids, Mi OKEN 3.58 19.33

Pacific Century Financial Corp., Honolulu BOH 1.73 12.96

PNC Bank Corp., Pittsburgh PNC 3.36 15.86

Popular Inc., Hato Rey-San Juan, P.R. BPOP 2.55 15

Regions Financial Corp., Birmingham, Ala. RGBK 3.02 17.43

Republic New York Corp. RNB 2.11 13.45

SouthTrust Corp., Birmingham, Ala. SOTR 1.97 15.67

Star Banc Corp., Cincinnati STB 5.4 21.65

State Street Corp., Boston STT 4.69 21.88

Summit Bancorp, Princeton, N.J. SUB 3.58 18.82

Suntrust Banks Inc., Atlanta STI 2.88 20.81

U.S. Bancorp, Minneapolis USB 4.69 18.17

Union Planters Corp., Memphis UPC 3.28 17.68

UnionBanCal Corp., San Francisco UNBC 2.39 15.16

Wachovia Corp., Winston-Salem, N.C. WB 3.27 18.44

Wells Fargo & Co., San Francisco WFC 2.33 20.7

Top US Bank Averages (51) 3.34 17.58

part 2 of 3

Expected

Non-Int. $ cost sMerger Prem.

Expense per shar(Non-int. Deposit 1998 P/E

WACC 1997 ($ miif M&A tCost Svgs PremiCurrent

AmSouth Bancorp 11.60% $526.20 $7.80 14.37% 23.71% 83.60%

Associated Banc 12.34% 207.8 9.87 17.91% 21.84% 82.70%

Banc One Corp., 12.70% 5,711.50 10.43 19.19% 28.21% 58.70%

Bank of New Yor 14.98% 1,874.00 4.73 8.19% 40.12% 88.40%

BankAmerica Cor 14.79% 8,521.00 7.59 10.39% 18.55% 69.40%

BankBoston Corp 13.91% 2,324.10 8.68 9.24% 21.30% 69.10%

Bankers Trust N 10.92% 4,981.00 26.77 23.81% 14.77% 62.10%

BB&T Corp., Win 11.72% 820.5 8.05 12.56% 30.84% 87.40%

Chase Manhattan 14.10% 10,069.00 14.74 13.46% 13.80% 52.70%

Citicorp, New Y 14.39% 13,987.00 16.21 12.82% 19.24% 61.30%

Comerica Inc., 11.76% 1,008.00 10.11 11.20% 31.15% 79.90%

Commerce Bancsh 12.35% 326.4 16.27 24.02% 18.54% 83.30%

Compass Bancsha 12.64% 371 8.63 19.73% 19.51% 78.60%

Crestar Financi 12.66% 707.3 8.27 14.51% 27.00% 86.00%

Fifth Third Ban 13.58% 506.2 5.35 6.55% 70.18% 131.80%

First American 12.52% 402 10.18 20.46% 25.31% 89.70%

First Chicago N 13.33% 3,332.00 8.85 10.60% 24.44% 71.70%

First Empire St 12.52% 418.1 102.78 22.10% 18.60% 79.20%

First Security 12.57% 554.1 6.45 15.40% 33.15% 98.60%

First Tennessee 12.34% 756.5 16.68 24.99% 37.14% 90.80%

First Union Cor 12.40% 5,320.00 9.55 18.64% 20.59% 61.90%

Firstar Corp., 13.19% 744 6.75 15.91% 30.60% 90.40%

Fleet Financial 12.65% 3,379.00 16.35 21.82% 20.25% 68.30%

Hibernia Corp., 12.38% 361.9 4.39 23.28% 17.62% 79.30%

Huntington Banc 11.86% 759.9 4.67 12.96% 25.00% 86.00%

J.P. Morgan & C 10.56% 5,066.00 12.59 11.15% 15.73% 63.00%

KeyCorp, Clevel 12.15% 2,435.00 10.99 15.52% 23.12% 71.10%

Marshall & Ilsl 12.20% 747.2 14.48 23.30% 29.81% 106.70%

MBNA Corp., Wil 15.17% 1,977.20 1.67 6.10% 93.14% 97.90%

Mellon Bank Cor 13.43% 2,568.00 11.77 19.42% 37.71% 88.90%

Mercantile Banc 11.86% 723.4 7.46 12.13% 25.61% 94.00%

National City C 12.20% 2,010.60 9.29 14.14% 30.28% 77.40%

NationsBank Cor 12.25% 7,457.00 10.81 17.77% 18.27% 61.00%

Northern Trust 13.37% 891.8 9.04 12.96% 37.97% 108.40%

Norwest Corp., 12.72% 4,421.30 6.61 17.14% 40.30% 92.10%

Old Kent Financ 12.19% 490.8 7.74 19.52% 16.68% 91.00%

Pacific Century 11.50% 475.7 4.36 17.61% 8.55% 61.00%

PNC Bank Corp., 10.56% 2,614.80 8.36 14.66% 26.30% 74.70%

Popular Inc., H 11.82% 605.4 7.66 15.47% 17.55% 70.60%

Regions Financi 12.39% 599.7 5.83 13.81% 22.06% 82.10%

Republic New Yo 11.48% 903.8 7.33 6.42% 9.93% 63.30%

SouthTrust Corp 11.87% 748.2 10.74 16.92% 22.01% 73.80%

Star Banc Corp. 13.13% 321.8 7.25 12.64% 49.26% 101.90%

State Street Co 14.76% 1,734.00 14.3 24.57% 30.38% 103.00%

Summit Bancorp, 13.57% 733.7 5.72 10.74% 30.57% 88.60%

Suntrust Banks 14.61% 1,685.60 6.6 9.25% 26.12% 98.00%

U.S. Bancorp, M 12.58% 2,300.70 11.57 10.33% 35.90% 85.60%

Union Planters 12.40% 611.6 14.04 20.69% 25.22% 83.20%

UnionBanCal Cor 12.36% 1,010.60 17.96 16.71% 14.09% 71.40%

Wachovia Corp., 12.55% 1,679.20 7.88 9.72% 42.07% 86.80%

Wells Fargo & C 13.58% 4,549.00 47.08 13.87% 24.39% 97.40%

Top US Bank Ave 12.69% 15.42% 27.54% 82.04%

part 3 of 3

Rel. P/E Target Target

vs. BanksRel. P/E Price Price Price InRel. P/E&Inc

5-yr. Hig5-yr. Low12/31/97Rel. P/EModel VaModel Val. Avg

AmSouth Bancorp 101.00% 121.80% 91.50% $54.31 $59.02 $60.11

Associated Banc 99.90% 118.80% 94.80% 55.13 59.03 60.09

Banc One Corp., 70.90% 100.10% 88.40% 49.38 60.89 69.28

Bank of New Yor 106.80% 102.30% 98.10% 57.81 54 71.52

BankAmerica Cor 83.90% 87.50% 80.60% 73 73.12 98.75

BankBoston Corp 83.50% 90.50% 81.40% 93.94 96.24 114.4

Bankers Trust N 75.00% 74.20% 69.00% 112.44 108.66 139.76

BB&T Corp., Win 105.60% 141.40% 92.40% 64.06 77.92 64.69

Chase Manhattan 63.70% 81.70% 65.40% 109.5 120.32 145.03

Citicorp, New Y 74.10% 90.80% 71.50% 126.44 136.13 156.33

Comerica Inc., 96.50% 133.60% 82.00% 90.25 111.69 107.68

Commerce Bancsh 100.60% 122.70% 88.90% 67.75 74.43 71.13

Compass Bancsha 95.00% 113.40% 80.40% 43.75 46.86 55.48

Crestar Financi 103.90% 142.70% 95.50% 57 71 55.34

Fifth Third Ban 159.30% 170.00% 138.00% 81.75 77.46 87.61

First American 108.40% 124.30% 79.90% 49.75 51.49 45.4

First Chicago N 86.70% 102.10% 81.50% 83.5 87.85 81.83

First Empire St 95.70% 113.60% 84.00% 465 495.63 532.42

First Security 119.10% 144.20% 89.10% 41.88 46.36 44.65

First Tennessee 109.70% 115.60% 106.40% 33.38 33.8 34.39

First Union Cor 74.70% 98.00% 82.50% 51.25 59.18 55.78

Firstar Corp., 109.20% 112.10% 106.70% 42.44 42.5 44.76

Fleet Financial 82.50% 104.20% 84.20% 75.13 83.9 87.01

Hibernia Corp., 95.90% 115.50% 87.40% 18.88 20.4 21.5

Huntington Banc 103.90% 124.40% 91.00% 36 38.89 35.52

J.P. Morgan & C 76.20% 82.40% 80.10% 112.88 118.62 137.65

KeyCorp, Clevel 85.90% 81.50% 80.50% 70.81 67.34 75.05

Marshall & Ilsl 129.00% 153.00% 107.30% 62.13 67.55 62.34

MBNA Corp., Wil 163.30% 150.10% 127.00% 27.31 32 40.83

Mellon Bank Cor 107.40% 105.80% 94.20% 60.63 56.12 70.37

Mercantile Banc 113.60% 143.80% 90.90% 61.5 71.25 64.44

National City C 93.50% 90.40% 89.80% 65.75 63.5 81.75

NationsBank Cor 73.80% 97.00% 76.80% 60.81 69.08 76.53

Northern Trust 130.90% 140.70% 104.70% 69.75 66.73 91.51

Norwest Corp., 111.30% 114.80% 93.50% 38.75 35.97 55.31

Old Kent Financ 110.00% 126.30% 88.90% 39.63 41.1 42.6

Pacific Century 73.70% 84.70% 80.90% 24.75 27 26.65

PNC Bank Corp., 90.20% 116.30% 82.30% 56.94 65.19 63.77

Popular Inc., H 85.30% 100.90% 75.60% 49.5 52.22 62.27

Regions Financi 99.20% 117.60% 92.00% 42.19 45 45.48

Republic New Yo 76.50% 78.30% 74.00% 114.19 113.79 139.76

SouthTrust Corp 89.10% 108.20% 101.40% 42.3 48.93 41.45

Star Banc Corp. 123.20% 159.80% 97.60% 57.38 69.26 63.67

State Street Co 124.40% 123.10% 112.40% 58.19 54.29 68.82

Summit Bancorp, 107.00% 151.90% 99.20% 52.88 68.56 54.67

Suntrust Banks 118.40% 113.50% 109.30% 71.38 66.4 86.2

U.S. Bancorp, M 103.40% 148.40% 96.40% 111.94 145.73 115.86

Union Planters 100.50% 144.90% 90.10% 67.88 79.75 57.06

UnionBanCal Cor 86.20% 116.90% 84.00% 107.5 107.97 91.83

Wachovia Corp., 104.90% 112.30% 95.70% 81.13 80.4 86.15

Wells Fargo & C 117.70% 120.20% 105.00% 339.44 321.96 364.86

Top US Bank Ave 100.00% 116.24% 90.98%

Source: American Banker Research, 1997 yearend bank earnings releases. For further clarification of the table analysis and any questions, call (212) 803-8283. Equity Research Analysis: James Gilloon. Market-to-book value is the closing stock price on Dec. 31, 1997, divided by the publicly reported book value per share as reported in most recently available bank earnings releases. Price/98 EPS estimate reflects the stock price as of 12/31/97 divided by the First Call consensus mean earnings per share 1998 estimate provided by bank equity analysts. Dollar cost savings per share if an M&A target reflects the present value of future cash flow savings (anticipated due to a reduction in non-interest expense as a result of eliminating overlapping business components of the two entities) divided by common shares outstanding as of 12/31/97. The present value of future cash flows from cost savings is determined by multiplying 1997 non-interest expense by the out-of-market and in-market percentage cost savings anticipated. The result is then discounted at the cost of equity capital to determine the present value of 1998 and 1999 cost savings. Deposit erosion is then subtracted to arrive at total cost savings. Cost of Capital is the rate of return that a bank could earn if it choose another investment with equivalent risk. It reflects the opportunity cost of funds employed as the result of an investment decision. The cost of equity capital is frequently used to obtain a net present value of future cash flows to the entity. The cost of equity capital is calculated by taking the rate of return over time for a applicable market index less the risk-free rate of return as of Dec. 31, 1997 (10 year US T Note, which is then multiplied by the stock beta to obtain an excess rate of return. The excess return equals the S&P 500 Index 10 year earnings per share return as of 12/31/97 of 14.587% less the 1o year US Treasury risk-free rate of 5.73%.The excess return is then multiplied by the 2 year Bloomberg beta against the S&P 500, and thereafter is added to the risk-free rate and the sum thereof equals the cost of equity (Cost of Capital). Weighted Average Cost of Capital (WACC) equals the Cost of Equity Capital rate and the yields on Preferred Stock, Trust Preferred Securities, and Long-Term Debt as of Dec. 31st allocated by the percentage of each debt or equity financing component. Net interest margin is net interest income divided by Average Total Earning Assets. Non- interest expense/revenues (excluding securities transactions) is the percentage of expense required to generate $1 in income for the bank. Expected merger premium equals the dollar cost savings per share divided by the 12/31/97 stock price. Deposit premium equals the sum of the 12/31/97 stock price less the 12/31/97 book value per share, divided by total deposits per common share. A lower deposit premium may indicate a undervalued bank relative to its peer group. Relative P/E versus S&P 500 equals the Price/(98 EPS estimates) divided by the S&P 500 98 P/E of 21.20. Relative P/E versus banks equals the Price/98 EPS estimate divided by 17.58 (the average Price/98 EPS est. for the 51 banks included) Relative P/E versus banks 5 year high/low equals the P/E ratio range from 1993-1997 divided by the average high and low for banks over the five year period. Target price relative P/E valuation reflects the anticipated stock price for 1998 based upon historical P/E ratios relative to banks compared against 1998 EPS estimates. Target price income model valuation reflects the anticipated stock price for 1998 based upon EPS forecasts, historical financial fundamentals, and cash flows discounted against the weighted average cost of capital less the perpetuity value. Anticipated merger price reflects the estimate of what the bank may fetch in the possibility of a takeover. It is derived by added the cost savings per share if a M&A target to the average of the two target price calculations. However, additional merger cost reductions or revenue producing synergies may be recognized over the restructuring period. Anticipated cost savings as a percentage of non-interest expense generally ranges from 15% to 35%, reflecting industry consensus estimates determined by geographic attributes, deposit market share, competitive positioning, business product lines, efficiency ratio, and technology. Cost savings are not expected to be realized until 1999 if a deal was take place in the first half of 1998. Upside potential reflects the average target price against the 12/31/97 stock price. American Banker 1998 ===