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/FIRST AND FINAL ADD -- NY011 -- FIRST CHICAGO EARNINGS/

 /FIRST AND FINAL ADD -- NY011 -- FIRST CHICAGO EARNINGS/
 FIRST CHICAGO REPORTS THIRD QUARTER LOSS AFTER SPECIAL PROVISION
 CHICAGO, Oct. 15 /PRNewswire/ -- First Chicago Corporation (NYSE: FNB) today reported a loss of $365.1 million, or $4.65 per common share, for the third quarter of 1992. For the first nine months of 1992, the loss was $15.9 million, or 65 cents per common share.
 "It is always disappointing to report a loss," Chairman Richard L. Thomas said. "However, we believe the accelerated asset disposition program announced last month was an appropriate response to the realities of the current real estate situation. Moreover, we are confident that we are now well positioned to more fully benefit from the potential earnings of our core businesses without the continuing drag from excessive credit costs," he added. "In the third quarter, these businesses performed well, with particularly strong results from trading activities and the credit card operation."
 HIGHLIGHTS
 -- As announced previously, the key factor in the third quarter financial loss was the special provision of $625 million, or $4.86 per common share, related to the decision to accelerate the disposition of $2 billion in commercial real estate exposure. This "disposition" portfolio will be managed and reported separately.
 (See Sept. 14 announcement.)
 -- The Corporation adopted fair value accounting for its $1.1 billion venture capital portfolio in the third quarter, resulting in the recognition of $364 million in cumulative appreciation as of Sept. 30, 1992. The impact on earnings per common share was 10 cents for the third quarter and $3.07 year-to-date. Earnings for the first two quarters of 1992 have been restated for this venture capital accounting change.
 -- Combined trading account and foreign exchange trading profits reached a record high $75 million for the third quarter.
 -- Noninterest expenses for the third quarter included charges of $55 million, or 43 cents per share, principally for the establishment of reserves for costs associated with occupancy, asset disposition and litigation matters.
 -- Capital ratios at September 30, 1992 remained well above regulatory minimum guidelines. The estimated Tier 1 risk-adjusted capital ratio under 1992 rules was 6.0 percent and the total risk- adjusted ratio was 10.1 percent.
 NET INTEREST INCOME
 For the third quarter, net interest income on a tax-equivalent basis was $293.7 million and the net interest margin was 2.49 percent. Average earning assets were $46.9 billion.
 Adjusted for the accounting effects of credit card securitization, net interest margin was 3.05 percent compared with 3.08 percent in the 1992 second quarter.
 NONINTEREST INCOME
 Total noninterest income was $385 million for the third quarter. Combined trading activities generated record profits due largely to the dramatic movements in international currency markets during the quarter.
 Equity securities gains were $28.4 million in the third quarter and reflect the adoption of fair value accounting (see discussion below). Gains realized on the sale of equity securities were $15 million while unrealized appreciation was $13.4 million.
 NONINTEREST EXPENSE
 Operating expenses increased to $473.8 million for the third quarter. This total included charges of $55 million principally for provisions associated with branch conversions and other occupancy costs in Chicago, New York and London. Expenses related to the accelerated asset disposition program, as well as litigation costs, were also factors in the $55 million charge.
 CREDIT QUALITY
 At Sept. 30, 1992, total exposure in the disposition portfolio was $1.975 billion, including nonperforming assets of $592 million. After considering prior writedowns, existing reserves and the special provision, the carrying value of the portfolio was 49 percent of original contractual exposure (see schedule).
 Nonperforming assets, excluding the disposition portfolio, were $516 million or 2.3 percent of loans and other real estate at Sept. 30, 1992.
 The provision for credit losses was $145 million in the third quarter, excluding the special provision. The commercial provision was $102 million, including $76 million related to loans that were subsequently transferred to the disposition portfolio.
 Net charge-offs in the third quarter were $113 million. Commercial net charge-offs were $89 million, including $49 million for loans that were subsequently transferred to the disposition portfolio in the third quarter.
 VENTURE CAPITAL ACCOUNTING CHANGE
 In the third quarter, the Corporation adopted a change in accounting practice for its $1.1 billion venture capital portfolio to reflect the fair value of these assets. For venture capital portfolios, fair value accounting is preferable to the Corporation's previous method of valuing these assets at the lower of aggregate cost or market. Cumulative pretax appreciation of $364 million was recognized on a quarterly basis as presented below.
 FIRST CHICAGO CORPORATION
 (in millions)
 First Second Third
 quarter quarter quarter Nine
 1992 1992 1992 months
 Equity securities gains (pretax) $ 48 $ (49) $ 14 $ 13
 Cumulative effect
 - pretax 351 0 0 351
 - after-tax 221 0 0 221
 Total impact on net income 251 (31) 9 229
 Total impact on earnings per share 3.59 (0.42) 0.10 3.07
 -0- 10/15/92
 /CONTACT: Lisabeth Weiner, 312-732-4455; or investor contacts, Colleen Mulligan, 312-732-4812, or Susan Temple, 312-732-8013, all of First Chicago/
 (FNB)
 /END FIRST AND FINAL ADD/ CO: First Chicago Corp. ST: Illinois IN: FIN SU: ERN


SH -- NY011A -- 0248 10/15/92 09:17 EDT
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Date:Oct 15, 1992
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