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BANK OF NEW YORK REPORTS $.80 FOURTH QUARTER EPS COMPARED TO $.82 LAST YEAR; TOTAL NONPERFORMING ASSETS DECLINE BY $214 MILLION OR 14 PERCENT

BANK OF NEW YORK REPORTS $.80 FOURTH QUARTER EPS COMPARED TO $.82 LAST

YEAR; TOTAL NONPERFORMING ASSETS DECLINE BY $214 MILLION OR 14 PERCENT
 NEW YORK, Jan. 15 /PRNewswire/ -- The Bank of New York Company, Inc. (NYSE: BK) today reported fourth quarter net income of $66 million, or $.80 per fully diluted common share, compared to net income of $65 million, or $.82 per fully diluted common share in the fourth quarter of 1990.
 Total nonperforming assets decreased for the second consecutive quarter, by $214 million, or 14 percent, to $1.35 billion. The nonperforming asset ratio declined to 4.8 percent from 5.3 percent at Sept. 30, 1991, and the regular allowance as a percent of related nonperforming loans was 84.0 percent, compared to 78.6 percent at September 30.
 The company reported net income of $122 million for the twelve months ended Dec. 31, 1991, compared to $308 million in 1990. The decrease reflects the $343 million provision for loan losses taken in the first quarter. Earnings per share were $1.28 and $3.98 for the years ended Dec. 31, 1991 and 1990, respectively.
 Return on average common equity and return on average assets were 9.12 percent and .62 percent for the fourth quarter. Based on 1992 standards, the company's Tier I capital and its total capital ratios were 5.89 percent and 9.71 percent at Dec. 31, 1991, compared to 5.70 percent and 9.49 percent at Sept. 30, 1991.
 At Dec. 31, 1990 these ratios were 5.02 percent and 8.09 percent.
 Tangible common equity as a percent of total assets was 4.54 percent at the end of 1991, compared with 4.31 percent at Sept. 30, 1991, and 3.72 percent one year ago.
 THE BANK OF NEW YORK COMPANY, INC.
 Nonperforming Assets
 (dollars in millions)
 Periods ended: 4th qtr. 3rd qtr. 4Q vs. 3Q change 2nd qtr.
 1991 1991 (Amount)(Percent) 1991
 Loans:
 HLT $ 175 $ 239 $ (64) (27) $ 469
 Commercial Real Estate 269 321 (52) (16) 337
 Other Commercial 357 380 (23) (6) 418
 Foreign 98 94 4 4 66
 LDC 48 51 (3) (6) 54
 Other 140 151 (11) (7) 139
 Total Loans 1,087 1,236 (149) (12) 1,483
 Other Real Estate 267 332 (65) (20) 365
 Total $1,354 $1,568 $(214) (14) $1,848
 Nonperforming Asset Ratio
 (as a percent) 4.8 5.3 6.0
 Regular Allowance/Related
 Nonperforming Loans 84.0 78.6 73.4
 Total nonperforming assets decreased by $214 million this quarter, or 14 percent.
 Highly leveraged transaction (HLT) nonperformers declined by $64 million. This is the third consecutive quarterly reduction in these loans. Five HLT loans ($47 million) were sold during the fourth quarter, six were returned to accrual status or repaid ($85 million), charge-offs of $27 million were taken on other HLT loans, while one large HLT and several smaller ones ($95 million) became nonperforming.
 Nonperforming commercial real estate assets, which include other real estate owned, declined for the fourth consecutive quarter, by $117 million, or 18 percent, to $536 million. Real estate properties totaling $42 million were sold, including an office building in North Carolina and a shopping mall in Indiana; charge-offs and write-downs of $56 million were taken on other real estate assets, while one loan paid down and two properties returning to accrual status aggregated $34 million. Two properties valued at $15 million were added to nonperforming status.
 A $34 million loan to a U.K.-based communications conglomerate became nonperforming during the fourth quarter.
 Loan Provision and Net Charge-Offs
 (in millions)
 Periods ended 4th qtr. 3rd qtr. 4th qtr. Full Year
 1991 1991 1990 1991 1990
 Provision $ 135 $ 141 $153 $746 $ 423
 Regular Net Charge-offs:
 HLT (46) (103) (13) (174) (48)
 Commercial real estate (52) (56) (18) (165) (45)
 Other commercial (54) (36) (1) (130) (5)
 Consumer (43) (52) (38) (201) (137)
 Foreign (23) (4) -- (28) (8)
 Other (5) (1) 10 (17) 4
 Total (223) (252) (60) (715) (239)
 Transfer from medium-
 term LDC allowance to
 regular allowance 30 -- 50 50 50
 Other (asset sales) -- (8) -- (28) --
 Increase (decrease) in
 regular allowance $ (58) $(119) $143 $ 53 $ 234
 Medium-term LDC net
 charge-offs $ -- $ 1 $(11) $(33) $(269)
 Other real estate expense 23 27 16 80 59
 The total allowance for loan losses, which includes the medium-term LDC allowance, was $1,008 million, or 3.60 percent of loans, compared to $1,095 million, or 3.77 percent of loans at September 30.
 The increase in consumer net charge-offs in 1991 relates to an increase in delinquencies, as well as to the full twelve months effect of a credit card portfolio acquired at the end of the first quarter of 1990.
 The company's medium-term LDC loans were $212 million at Dec. 31, 1991, compared to $226 million at September 30; the medium-term LDC loan loss allowance was $135 million, or 64 percent of such loans.
 Highly Leveraged Transactions
 (dollars in millions)
 12/31/91 Pct. 9/30/91 Pct. 6/30/91 Pct.
 Communications $1,581 49 $1,576 44 $1,728 41
 Other 1,659 51 2,044 56 2,507 59
 Total $3,240 100 $3,620 100 $4,235 100
 Total HLT loans declined by $380 million, or 10 percent, from September 30 to $3,240 million at December 31, reflecting reductions from sales and paydowns ($372 million), payoffs ($75 million), and delistings ($120 million); these reductions were offset by $187 million in drawdowns. Further declines in HLT loans are expected in 1992. At Dec. 31, 1991, there were no material nonperforming communications HLT loans.
 Net Interest Income
 On a taxable equivalent basis, net interest income amounted to $299 million in the fourth quarter of 1991, compared to $348 million in the same period of 1990. 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 2.43 percent in the fourth quarter compared to 2.22 percent in 1990; and the net yield on interest-earning assets was 3.26 percent compared to 3.31 percent in the fourth quarter of 1990.
 Year to date net interest earnings on a taxable equivalent basis were $1,273 million, compared to $1,398 million in the same period of 1990. The net interest rate spread was 2.49 percent in 1991 compared with 2.12 percent in 1990. The net yield on interest-earning assets was 3.43 percent in 1991 and 3.29 percent in 1990.
 Noninterest Income
 Noninterest income totaled $295 million in the fourth quarter of 1991, compared to $239 million in the same period last year. For the full year, noninterest income totaled $1,036 million in 1991 and $936 million in 1990.
 Fourth quarter trust and securities processing fees were $87 million in 1991 compared to $68 million in 1990, when several of the company's securities processing areas reported lower revenues. Special strength continued in personal trust, American depositary receipts, securities lending, master trust, and mutual funds. For the year, trust and securities processing fees were $350 million in 1991 and $357 million in 1990. The prior year included $21 million of revenue from the mutual funds shareholder accounting business, which the company had substantially exited by June 1990. Despite the loss of these revenues, the effect of this action was to increase profitability.
 Service charges on deposit accounts were $30 million in the fourth quarter of 1991 and $20 million in the same period last year. Credit card fees continued to be strong. Credit card securitization increased noninterest income by $18 million and $48 million in the fourth quarter and year to date periods of 1991, respectively.
 Fourth quarter and full year securities gains were $38 million and $80 million in 1991, compared to $18 million and $42 million in 1990, respectively.
 Foreign exchange profits and trading activities for the fourth quarter and year to date periods totaled $20 million and $71 million in 1991, compared to $20 million and $48 million in 1990.
 Noninterest Expense and Income Taxes
 (in millions)
 Periods ended 4th qtr. 3rd qtr. 4th qtr. Full Year
 1991 1991 1990 1991 1990
 Salaries and employee
 benefits $136 $139 $144 $ 569 $ 621
 Occupancy expenses 41 41 41 157 157
 Furniture and equipment
 expenses 23 23 28 95 105
 Deposit insurance 11 11 6 41 24
 Other operating expenses 80 75 87 300 323
 Operating expenses 291 289 306 1,162 1,230
 Acquisitions & dispositions 12 12 22 54 74
 Profit sharing 8 5 7 15 36
 Other Real Estate Expense 23 27 16 80 59
 Total $334 $333 $351 $1,311 $1,399
 Operating expenses declined by 5 percent, or $15 million, from the fourth quarter of 1990. For the twelve months ended Dec. 31, 1991, operating expenses
declined by 6 percent, or $68 million. The cost of


FDIC insurance increased to $41 million in 1991, compared to $24 million last year.
 The effective tax rate for the fourth quarter of 1991 was 38.8 percent. The effective income tax rates for 1991 and 1990 were 31.1 percent and 28.7 percent, respectively. The increase in the effective rate in 1991 is attributable to fewer foreign tax credits.
 -0- 1/15/92
 /CONTACT: Michael M. Pascale, vice president, 212-495-1041, or Pierre S. Brull, vice president, 212-495-1721, or Margaret Southerland, assistant vice president, 212-495-1725, all of The Bank of New York/
 (BK) CO: Bank of New York Company Inc. ST: New York IN: FIN SU: ERN


TS -- NY014 -- 9845 01/15/92 08:48 EST
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