Allfirst Reports Net Income of $37.6 Million for Second Quarter 1999.DUBLIN Dublin, city, Republic of Ireland Dublin, Irish Baile Átha Cliath, county borough (1991 pop. 915,516), Leinster, capital of the Republic of Ireland, on Dublin Bay at the mouth of the Liffey River. , Ireland--(BUSINESS WIRE)--Aug. 4, 1999-- Allied Irish Banks Allied Irish Banks, p.l.c. (AIB) (Irish: Bainc-Aontas Éireann),ISEQ: ALBK, LSE: ALBK, NYSE: AIB, FWB: AIB is a commercial bank based in Ireland not to be mistaken for Anglo Irish Bank. AIB is one of the so called Big Four commercial banks in Ireland. , p.l.c. ("AIB AIB n abbr (BRIT) (= Accident Investigation Bureau) → oficina de investigación de accidentes AIB n abbr (Brit) (= Accident Investigation Bureau) → ") (NYSE NYSE See: New York Stock Exchange : AIB;AIBPR:FMBPR) today announced that its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. Allfirst Financial ("Allfirst") has reported net income of $37.6 million for the second quarter of 1999, compared to $47.5 million during the same period in 1998. For the first six months of 1999, Allfirst posted earnings of $80 million compared to $143.2 million for the six months to June June: see month. 1998.
These results should be viewed in the following context:
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Quarter ended 30 June Half Year June 30
$ million 1998 1999 % 1998 1999 %
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Net Income 47.5 37.6 (21) 143.2 80.0 (44)
Gain on Sale of Credit
Card Portfolio/Loans - - (37.4) -
Name Change - 6.1 - 6.1
Securities (Gains)/Losses (6.2) 0.2 (25.5) (3.0)
--- --- ---- ---
Adjusted Net Income 41.3 43.9 6 80.3 83.1 3
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-0- "We are pleased with our second quarter performance, business volumes are up across our franchise and non-interest income continues to grow. We now have a consistent brand name and technologically refreshed re·fresh v. re·freshed, re·fresh·ing, re·fresh·es v.tr. 1. To revive with or as if with rest, food, or drink; give new vigor or spirit to. 2. company that positions us well to serve the diverse financial needs of our customers", reported Frank Bramble bramble, name for plants of the genus Rubus [Lat.,=red, for the color of the juice]. This complex genus of the family Rosaceae (rose family), with representatives in many parts of the world, includes the blackberries, raspberries, loganberries, boysenberries, , Chief Executive Officer of AIB USA. Performance highlights for the first six months of 1999 included growth in commercial real estate loans and retail loans of 6% and 5% respectively, while overall loan growth was negatively impacted following the sale of the residential mortgage origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real business in 1998. There was also strong growth in trust revenues and deposit service charges. Costs declined due to savings following the integration of our franchises and sale of businesses in 1998 with manpower numbers decreasing by over 800 since June 1998. Foreign maritime loan MARITIME LOAN. A contract or agreement by which one, who is the lender, lends to another, who is the borrower, a certain sum of money, upon condition that if the thing upon which the loan has been made, should be lost by any peril of the sea, or vis major, the lender shall not be repaid, charge-offs totalled $10 million and associated collection costs totalled $7 million for the half year to June 1999. This portfolio represents less than 3% of the total Allfirst portfolio. "The maritime portfolio is showing signs of improvement, with lower charge- offs and maritime collection costs anticipated in the second half of 1999", said Bramble. In the half year to 30 June 1999, non-performing assets amounted to $ 93 million (0.53% of total assets). Non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. of $54.1 million were covered 291% by total provisions of $157.3 million. Allfirst Financial is a regional, diversified financial The diversified financial services segment includes a range of consumer and commercially-oriented companies offering a wide variety of products and services, including various lending products (such as home equity loans and credit cards), insurance, and securities and investment services company headquartered in Baltimore Baltimore, city (1990 pop. 736,014), N central Md., surrounded by but politically independent of Baltimore co., on the Patapsco River estuary, an arm of Chesapeake Bay; inc. 1745. , MD, offering a full range of financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. including banking, trust, investment and insurance to retail, business and commercial customers. Its banking subsidiary, Allfirst Bank, operates over 250 bank branches and more than 500 ATMs throughout Maryland Maryland (mâr`ələnd), one of the Middle Atlantic states of the United States. It is bounded by Delaware and the Atlantic Ocean (E), the District of Columbia (S), Virginia and West Virginia (S, W), and Pennsylvania (N). , Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York , Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. D.C., northern Virginia Northern Virginia (NoVA) consists of Arlington, Fairfax, Loudoun, and Prince William counties and the independent cities of Alexandria, Falls Church, Fairfax, Manassas, and Manassas Park. and Delaware Delaware, state, United States Delaware (dĕl`əwâr, –wər), one of the Middle Atlantic states of the United States, the country's second smallest state (after Rhode Island). . Allfirst Financial's assets were $17.7 billion as of June 30, 1999. Information about Allfirst Financial is available at allfirst.com. Allfirst Financial is a wholly owned subsidiary of Allied Irish Banks, p.l.c. (NYSE: AIB).
FIRST MARYLAND BANCORP AND SUBSIDIARIES
Consolidated Statements of Condition
(Unaudited)
June 30, December 31,
1999 1998
(in thousands)
ASSETS
Cash and due from banks $982,183 $1,206,1789
Interest-bearing deposits in other banks 1,356 1,478
Trading account securities 22,116 42,528
Federal funds sold and securities
purchased under resale agreements 10,330 130,916
Investment securities available-for-sale 4,285,842 4,815,087
Loans held-for-sale 9,818 84,254
Loans, net of unearned income
of $196,797 and $199,471
Commercial 3,514,623 3,452,416
Commercial real estate 2,442,834 2,305,639
Residential mortgage 713,687 827,103
Retail 2,867,438 2,739,984
Credit card 14,800 15,234
Commercial leases receivable 540,100 540,395
Retail leases receivable 335,590 318,582
Foreign 299,642 365,067
----------- -----------
Total loans, net of unearned income 10,728,714 10,564,420
Allowance for credit losses (157,351) (157,351)
----------- -----------
Loans, net 10,571,363 10,407,069
----------- -----------
Premises and equipment 205,308 203,903
Due from customers on acceptances 5,050 12,253
Intangible assets 867,212 839,584
Other assets 728,470 497,670
----------- -----------
Total assets $17,689,048 $18,294,920
----------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
Domestic deposits:
Non-interest bearing deposits $2,895,932 $3,276,589
Interest bearing deposits 8,812,363 8,623,861
Interest bearing deposits in
foreign banking office 248,566 356,601
----------- -----------
Total deposits 11,956,861 12,257,051
Federal funds purchased and securities
sold under repurchase agreements 1,596,855 2,185,794
Other borrowed funds, short-term 570,148 377,927
Bank acceptances outstanding 5,050 12,253
Accrued taxes and other liabilities 735,843 586,137
Long-term debt 896,180 856,320
----------- -----------
Total liabilities 15,760,937 16,275,482
----------- -----------
Redeemable preferred stock 8,224 8,111
Total stockholders' equity 1,919,887 2,011,327
----------- -----------
Total liabilities, preferred
stock and stockholders' equity $17,689,048 $18,294,920
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FIRST MARYLAND BANCORP AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
Three Months Ended Half-Year Ended
June 30, June 30,
1999 1998 1999 1998
(in thousands) (in thousands)
INTEREST INCOME
Interest and fees on loans $194,722 $197,171 $388,873 $394,143
Interest and dividends on
investment securities
Taxable 58,028 56,804 120,035 111,634
Tax-exempt 5,122 5,351 10,301 10,579
Dividends 2,379 2,604 4,110 4,851
Interest on loans
held-for-sale 435 5,429 997 12,698
Other interest income 796 2,399 1,382 6,038
-------- -------- -------- --------
Total interest and
dividend income 261,482 269,758 525,698 539,943
======== ======== ======== ========
INTEREST EXPENSE
Interest on deposits 88,632 99,396 180,541 198,908
Interest on federal funds
purchased and other
short-term borrowings 24,837 21,328 51,854 42,804
Interest on long-term debt 13,651 12,217 27,313 24,909
-------- -------- -------- --------
Total interest expense 127,120 132,941 259,708 266,621
======== ======== ======== ========
NET INTEREST INCOME 134,362 136,817 265,990 273,322
Provision for credit losses 9,349 5,251 20,979 14,122
-------- -------- -------- --------
NET INTEREST INCOME AFTER
PROVISION FOR CREDIT LOSSES 125,013 131,566 245,011 259,200
======== ======== ======== ========
NON INTEREST INCOME
Service charges on
deposit accounts 28,020 27,763 57,137 53,313
Trust and investment
advisory fees 19,931 17,940 39,894 34,088
Credit card income 7,402 6,102 13,798 11,120
Mortgage banking income 2,103 7,173 5,822 21,355
Other income 25,996 20,944 45,467 49,104
Securities gains, net (292) 9,921 4,991 40,353
Gain on sale of
credit card loans -- -- -- 60,000
-------- -------- -------- --------
Total non interest
income 83,160 89,843 167,109 269,333
======== ======== ======== ========
NON INTEREST EXPENSES
Salaries and other
personnel costs 68,311 74,363 137,244 154,433
Equipment costs 13,229 10,067 24,534 21,700
Occupancy costs 8,741 9,213 18,253 19,424
Other operating expenses 45,781 38,593 79,951 77,977
Intangible assets
amortization expense 12,749 13,787 25,514 28,011
-------- -------- -------- --------
Total non interest
expenses 148,811 146,023 285,496 301,545
======== ======== ======== ========
INCOME BEFORE INCOME TAXES 59,362 75,386 126,624 226,988
Income tax expense 21,811 27,932 46,655 83,835
-------- -------- -------- --------
NET INCOME $37,551 $47,454 $79,969 $143,153
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