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BANK OF NEW YORK CO. REPORTS $.97 1ST QUARTER EPS COMPARED WITH $1.02 LOSS LAST YEAR; TOTAL NONPERFORMING ASSETS DECLINE BY $66M, OR 5 PCT.

BANK OF NEW YORK CO. REPORTS $.97 1ST QUARTER EPS COMPARED WITH $1.02 LOSS LAST YEAR; TOTAL NONPERFORMING ASSETS DECLINE BY $66M, OR 5 PCT.
 NEW YORK, April 15 /PRNewswire/ -- The Bank of New York Company, Inc. (NYSE: BK), today reported first quarter net income of $80 million, or $.97 per fully diluted common share, compared with a loss of $63 million, or $1.02 per common share, in the first quarter of 1991.
 Stronger fee income, wider spreads, and continued stringent control of operating expenses enabled earnings to advance even though the provision for loan losses and other real estate expense were only slightly lower than in the fourth quarter.
 Total nonperforming assets decreased for the third consecutive quarter, by $66 million, or 5 percent, to $1,288 million. The nonperforming asset ratio declined to 4.6 percent from 4.8 percent at Dec. 31, 1991, and the regular allowance as a percent of related nonperforming loans increased to 93 percent, from 84 percent at Dec. 31, 1991.
 Return on average common equity and return on average assets were 11.29 percent and .77 percent for the first quarter, and represented the highest levels since the first quarter of 1990. Based on 1992 standards, the company's Tier I capital and its total capital ratios were 5.82 percent and 9.46 percent at March 31, 1992, compared with 5.28 percent and 8.42 percent last year. The increase in these ratios is attributable to growth in equity through retained earnings as well as to lower risk-adjusted balance sheet footings.
 Tangible common equity as a percent of total assets was 4.62 percent at March 31, 1992, compared with 4.17 percent one year ago.
 Nonperforming Assets
 (Dollars in millions)
 1st 4th 3rd 2nd
 Quarter Quarter Quarter Quarter
 1992 1991 1991 1991
 Loans:
 HLT $ 174 $ 175 $ 239 $ 469
 Commercial Real Estate 252 269 321 337
 Other Commercial 259 357 380 418
 Foreign 94 98 94 66
 LDC 46 48 51 54
 Other 131 140 151 139
 Total Loans 956 1,087 1,236 1,483
 Other Real Estate 310 267 332 365
 Other Assets 22 - - -
 Total $1,288 $1,354 $1,568 $1,848
 Nonperforming Asset Ratio (pct) 4.6 4.8 5.3 6.0
 Regular Allowance/Related
 Nonperforming Loans (pct) 93.3 84.0 78.6 73.4
 Total nonperforming assets decreased by $66 million this quarter, or 5 percent. Since June 30, 1991, nonperforming assets have declined by $560 million, or 30 percent.
 Other commercial nonperforming loans declined by $98 million as a result of approximately $42 million in payments, charge-offs of $70 million, and two foreclosures of leased aircraft totaling $22 million, which were reclassified as other assets. These reductions were offset by $36 million of loans that became nonperforming. One loan to a national retail chain became nonperforming and was sold during the quarter.
 Nonperforming commercial real estate assets, which include other real estate owned, increased $26 million. The increase is primarily related to the difference in timing between the addition of new nonperforming assets and the sale of existing properties. In the first quarter, four domestic commercial real estate loans totaling $78 million became nonperforming. This was partially offset by charge-offs and writedowns of $39 million, repayments of $10 million, and property sales of $3 million. Several sales of nonperforming real estate assets are expected to close later this year. The company has no exposure to Olympia & York Developments Ltd.
 Loan Provision and Net Charge-Offs
 (In millions)
 1st 4th 1st
 Quarter Quarter Quarter
 1992 1991 1991
 Provision $ 133 $ 135 $ 343
 Regular Net Charge-offs:
 HLT (5) (46) (3)
 Commercial Real Estate (22) (52) (19)
 Other Commercial (72) (54) (14)
 Consumer (42) (43) (53)
 Foreign (6) (23) -
 Other (10) (5) (3)
 Total (157) (223) (92)
 Transfer from Medium-
 Term LDC Allowance to
 Regular Allowance - 30 20
 Asset Sales - - (20)
 Increase (Decrease) in
 Regular Allowance $ (24) $ (58) $251
 Medium-Term LDC Net
 Charge-offs $ 1 $ - $(34)
 Other Real Estate
 Expense 20 23 24
 The total allowance for loan losses, which includes the medium-term LDC allowance, was $984 million, or 3.54 percent of loans, compared to $1,008 million, or 3.60 percent of loans, at Dec. 31, 1991.
 The company's medium-term LDC loans were $210 million at March 31, 1992, compared with $212 million at Dec. 31, 1991; the medium-term LDC loan loss allowance was $135 million, or 64 percent of such loans.
 Highly Leveraged Transactions
 (Dollars in millions)
 3/31/92 Pct. 12/31/91 Pct. 3/31/91 Pct.
 Other $1,505 59 $1,659 51 $2,782 62
 Communications 1,062 41 1,581 49 1,677 38
 Total $2,567 100 $3,240 100 $4,459 100
 Total HLT loans declined by $673 million, or 21 percent, from Dec. 31, 1991, reflecting reductions from delistings ($540 million), paydowns ($157 million), and payoffs ($103 million); these reductions were offset by drawdowns ($103 million) and two new loans ($29 million). Most of the delistings were in the communications area, where outstandings declined by $519 million and now represent 41 percent of total HLTs.
 Net Interest Income
 On a taxable equivalent basis, net interest income amounted to $316 million in the first quarter of 1992, compared with $351 million in the same period of 1991. The decrease is primarily due to the credit card securitizations completed during 1991 (which effectively transfer reported revenues from net interest income to noninterest income, net of credit losses) and a lower volume of average interest earning assets. The net interest rate spread was 2.81 percent in the first quarter compared with 2.58 percent in the first quarter of 1991; and the net yield on interest-earning assets was 3.51 percent compared with 3.62 percent last year.
 The increase over the fourth quarter of 1991 was $16 million for net interest income and 38 basis points for the net interest rate spread.
 Noninterest Income
 Noninterest income increased 25 percent to $286 million in


the first quarter from $228 million in the same period last year. Trust and securities processing fees increased 7 percent, with improvement in most areas. Significant growth occurred in stock transfer (up 31 percent) and mutual funds (up 29 percent). Special strength was also noted in master trust, personal trust, and personal investment management.
 Service charges and fees grew by 23 percent to $128 million in the first quarter from $104 million last year. Credit card securitization increased revenues by $17 million. The balance of the increase was primarily related to higher retail service charges as well as to improved performance in funds transfer and global trade finance services.
 An extensive direct-mail campaign to the affiliated unions of the AFL-CIO and aggressive marketing of the low-rate Consumers Edge card resulted in the addition of 190,000 new credit card accounts, a 6 percent increase over the year end base.
 Securities gains were $15 million in the first quarter of 1992 and 1991.
 Foreign exchange profits and trading activities in the first quarter totaled a record $35 million, compared with $10 million in 1991.
 Noninterest Expense and Income Taxes
 (In millions)
 1st 4th 1st
 Quarter Quarter Quarter
 1992 1991 1991
 Salaries and Employee Benefits $151 $138 $151
 Occupancy Expenses 37 41 37
 Furniture and Equipment Expenses 22 23 25
 Other Operating Expenses 81 90 83
 Operating Expenses 291 292 296
 Other Real Estate Expense 20 23 24
 Deposit Insurance 11 11 9
 Profit Sharing 9 8 1
 Deconsolidated Subsidiary - - 5
 Total $331 $334 $335
 Operating expenses declined by 2 percent, or $5 million, from the first quarter of 1991.
 The effective tax rate for the first quarter of 1992 was 34.0 percent. In the first quarter of 1991, the company recorded an income tax benefit as a consequence of the significant provision for loan losses, which was fully tax-effected.
 THE BANK OF NEW YORK COMPANY, INC.
 Financial Highlights
 (Unaudited)
 (Dollars in millions, except per share amounts)
 Three months ended March 31 1992 1991 Pct.
 Change
 Net income -
 Fully diluted earnings 0.97 - -
 Cash dividends 0.38 0.53 -28.3
 Return on average common
 shareholders' equity (pct) 11.29 -
 Return on average assets (pct) 0.77 -
 As of March 31:
 Assets $40,149 $39,436 1.8
 Loans 27,770 29,487 -5.8
 Investment Securities 4,032 2,648 52.2
 Medium-Term LDC loans 210 241 -12.8
 Reserve for medium-term LDC loans 135 164 -17.5
 Deposits - Domestic 18,573 19,724 -5.8
 - Foreign 10,672 11,940 -10.6
 Long-term debt 1,232 862 42.9
 Preferred shareholders' equity 394 395 -
 Common shareholders' equity 2,561 2,415 6.1
 Common shareholders' equity per share 35.96 34.09 5.5
 Market value per share of common stock 41.63 29.25 42.3
 Allowance for loan losses as a percent
 of loans 3.54 4.18
 Tier I capital ratio (pct) 5.82 5.28
 Total capital ratio (pct) 9.46 8.42
 Leverage ratio (pct) 6.34 6.00
 Tangible common equity ratio (pct) 4.62 4.17
 -0- 4/15/92
 /CONTACT: Michael M. Pascale, 212-495-1041; Pierre S. Brull, 212-495-1721; or Margaret Southerland, 212-495-1725, all of the Bank of New York Company/
 (BK) CO: The Bank of New York Company, Inc. ST: New York IN: FIN SU: ERN


GK-OS -- NY013 -- 8511 04/15/92 09:10 EDT
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