Printer Friendly

BOATMEN'S BANCSHARES REPORTS 31.7 PERCENT GAIN IN FIRST QUARTER NET INCOME

 BOATMEN'S BANCSHARES REPORTS 31.7 PERCENT GAIN
 IN FIRST QUARTER NET INCOME
 ST. LOUIS, April 15 /PRNewswire/ -- Boatmen's Bancshares, Inc. (NASDAQ-NMS: BOAT) reported that first quarter net income increased 31.7 percent to $45.6 million from $34.6 million the year before. Earnings per share, reflecting a common stock offering in April 1991, rose 20 percent to $1.20 per share from $1.00 per share. Return on assets improved to 1.06 percent from 0.84 percent.
 "These results are encouraging and reflect continued strength in net interest income and noninterest income," commented Andrew B. Craig, III, chairman, president and chief executive officer. The executive stressed, "The strategic initiatives that we have been concentrating on are clearly having a positive impact on our profitability. We believe that this first quarter performance represents a basic step-up in our underlying earning power."
 Net interest income increased nearly 15 percent to $155.6 million from $135.7 million in the comparable 1991 period. The net interest margin, benefiting from widening interest rate spreads, was 4.26 percent, versus 3.87 percent the year before and 4.21 percent in the 1991 fourth quarter. "Contributing to this improvement was a continuing shift in funding mix to a greater reliance on core deposits, the result of the strategy to increase our penetration of the retail market," Craig explained.
 Noninterest income climbed more than 38 percent to $80.1 million from $57.9 million. Excluding the effect of purchase acquisitions and securities gains, the increase still would have been more than 16 percent. Trust fees rose nearly 22 percent, with service charges and investment banking profits and fees also up sharply. Noninterest income represented 32.8 percent of operating income, compared with 28.7 percent a year earlier.
 Noninterest expense was up 18.6 percent and included ongoing expenses from purchase acquisitions, as well as higher FDIC insurance premiums. Excluding these factors and costs associated with foreclosed property, noninterest expense would have risen 5.3 percent.
 First quarter net charge-offs were $11.7 million, compared with $13.5 million a year ago and $23.4 million in the 1991 fourth quarter. Nonperforming assets at March 31 were relatively unchanged from year-end 1991, at $323.5 million, but declined slightly as a percent of total loans and foreclosed property. The foregoing total includes $22.9 million of nonperforming assets acquired in purchase transactions closed in the first quarter of the year.
 During the first quarter the reserve coverage of nonperforming loans was further strengthened by increasing the loan-loss provision modestly. At March 31, the loan loss reserve coverage exceeded 100 percent of nonperforming loans. In addition, the reserve as a percent of net loans was equivalent to 1.91 percent, up from 1.73 percent a year ago and 1.80 percent at year-end 1991.
 At March 31, total assets stood at $18.6 billion, up from $16.3 billion a year ago. The increase was primarily attributable to purchase acquisitions of First Interstate Bank of Oklahoma; Founders Bancorporation, and Superior Federal Bank. On April 1, Boatmen's completed the acquisition of First Interstate of Iowa, which has assets of $1.2 billion.
 Boatmen's, the 34th largest U.S. bank holding company, has the leading market share position in Missouri, and operates more than 300 locations in Missouri, Illinois, Tennessee, Oklahoma, Arkansas and Iowa. During the first quarter the company announced an agreement to acquire Sunwest Financial Services, Inc., based in Albuquerque, the largest financial institution in New Mexico with total assets of approximately $3.4 billion. In addition, Boatmen's Trust Company is among the dozen largest providers of trust services, with assets under management of approximately $30 billion.
 BOATMEN'S BANCSHARES, INC.
 Consolidated Statement of Income
 (in thousands)
 Quarter ended March 31
 1992 1991
 Interest and dividend income
 Interest and fees on loans $213,178 $230,593
 Interest on short-term investments 747 2,362
 Interest on Federal funds sold and
 securities purchased under resale
 agreements 11,394 11,980
 Interest and dividends on investment
 securities:
 Taxable 69,781 62,675
 Tax-exempt 14,402 13,932
 Dividends 211 424
 Total interest and dividends on
 investment securities 84,394 77,031
 Interest on trading securities 1,028 1,011
 Interest on receivable due from
 Resolution Trust Corporation 22,663
 Total interest and dividend income 310,741 345,640
 Interest expense
 Interest on deposits 128,690 172,371
 Interest on Federal funds purchased and
 other short-term borrowings 19,843 31,702
 Interest on capital lease obligation 982 999
 Interest on long-term debt 5,601 4,899
 Total interest expense 155,116 209,971
 Net interest income 155,625 135,669
 Provision for loan losses 21,009 20,529
 Net interest income after provision
 for loan losses 134,616 115,140
 Noninterest income
 Trust fees 29,955 24,589
 Service charges 23,031 16,042
 Credit card 4,475 3,958
 Investment banking profits and fees 7,132 3,868
 Investment securities gains (losses) 4,936 (25)
 Other 10,604 9,460
 Total noninterest income 80,133 57,892
 Noninterest expense
 Staff 74,062 63,614
 Net occupancy 10,425 9,655
 Equipment 11,592 9,958
 FDIC insurance 7,514 5,980
 Credit card 4,066 3,342
 Other 40,643 32,517
 Total noninterest expense 148,302 125,066
 Income before income tax expense 66,447 47,966
 Income tax expense 20,838 13,328
 Net income $ 45,609 $ 34,638
 Net income per share $ 1.20 $ 1.00
 Dividends declared per share $ 0.54 $ 0.53
 Average shares (YTD) 38,033,310 34,748,925
 Returns:
 Return on assets 1.06 0.84
 Return on equity 13.42 11.96
 Return on common equity 13.42 11.95
 Preferred dividends declared $22 $23
 Fully taxable equivalent (FTE)
 adjustment $8,226 $8,306
 Consolidated Balance Sheet
 (in thousands)
 March 31
 Assets 1992 1991
 Cash and due from banks $ 1,424,180 $ 1,066,636
 Short-term investments 76,637 114,494
 Investment securities 4,686,700 3,666,087
 Debt securities held for sale 33,665 --
 Trading securities 35,394 82,878
 Receivable due from Resolution
 Trust Corporation -- 1,002,811
 Federal funds sold and
 securities purchased
 under resale agreement 1,478,132 594,922
 Loans (net of unearned income
 of $48,124 and $65,520,
 respectively) 10,146,451 9,092,908
 Less reserve for loan losses 193,929 157,227
 Loans, net 9,952,522 8,935,681
 Property and equipment 298,034 248,171
 Other assets 631,057 590,200
 Total assets $18,616,321 $16,301,880
 Liabilities and Stockholders'
 Equity
 Liabilities:
 Demand deposits $ 2,828,225 $ 2,263,960
 Retail savings deposits and
 interest-bearing
 transaction accounts 5,322,053 3,941,711
 Time deposits 6,175,672 6,538,215
 Total deposits 14,325,950 12,743,886
 Federal funds purchased and
 securities sold
 under repurchase agreements 2,227,180 1,541,030
 Short-term borrowings 233,507 424,187
 Capital lease obligation 40,549 41,217
 Long-term debt 237,506 203,554
 Other liabilities 179,141 179,530
 Total liabilities 17,243,833 15,133,404
 Redeemable preferred stock 1,267 1,306
 Stockholders' Equity:
 Common stock ($1 par value;
 50,000,000 shares
 authorized; 38,055,445 and
 34,777,819 shares issued,
 respectively) (A) 38,055 347,778
 Surplus 571,939 140,329
 Retained earnings 761,227 679,063
 Total stockholders' equity 1,371,221 1,167,170
 Total liabilities and
 stockholders' equity $18,616,321 $16,301,880
 Book value per share $ 36.03 $ 33.56
 (A) On April 23, 1991, the shareholders approved a change in the par value of the Corporation's common stock to $1.00 per share from $10.00 per share.
 Summary of Reserve for Loan Losses
 (in thousands)
 Quarter Ended March 31
 1992 1991
 Balance, beginning of year $174,643 $150,209
 Loans charged off:
 Domestic
 Commercial (5,393) (4,675)
 Real estate
 Commercial real estate (2,922) (1,068)
 Construction (757) (3,732)
 1-4 family residential (719) (1,225)
 Consumer (7,123) (8,096)
 Foreign - -
 Total charge-offs (16,914) (18,796)
 Recoveries on loans previously
 charged off:
 Domestic
 Commercial 1,770 1,561
 Real estate
 Commercial real estate 181 90
 Construction 123 205
 1-4 family residential 57 254
 Consumer 3,040 3,130
 Foreign 0 45
 Total recoveries 5,171 5,285
 Net charge-offs (11,743) (13,511)
 Provision for loan losses 21,009 20,529
 Reserve of purchased subsidiary 10,020 -
 Balance, end of period $193,929 $157,227
 Reserve at March 31:
 Loan reserve as percent
 of net loans 1.91 1.73
 Loan reserve as percent
 of nonperforming loans 103.29 73.11
 Loan reserve as multiple of
 annualized net charge-offs 4.13 2.91
 Net charge-offs during first quarter:
 Net charge-offs annualized as
 percent of net loans 0.46 0.59
 Net charge-offs annualized as
 percent of net loans (average) 0.48 0.59
 Net charge-offs annualized as
 percent of loan reserve 24.22 34.37
 Nonperforming Assets
 (in thousands)
 March 31 Dec. 31
 1992 1991 1991
 Nonaccrual $148,494 $168,780 $156,913
 Restructured 22,356 25,098 15,852
 Past due 90 days or more 16,897 21,165 12,218
 Total nonperforming loans 187,747 215,043 184,983
 Foreclosed property 135,759 78,868 137,137
 Total nonperforming assets $323,506 $293,911 $322,120
 March 31 Dec. 31
 Nonperforming Asset Ratios 1992 1991 1991
 Nonperforming loans
 as percent of total loans 1.84 2.35 1.90
 Nonperforming assets as
 percent of total loans and
 foreclosed property 3.13 3.18 3.26
 Nonperforming assets as
 percent of total assets 1.74 1.80 1.83
 Loan reserve as percent of
 nonperforming loans 103.29 73.11 94.41
 Consolidated Average Balance Sheet
 and Net Interest Margin
 (in thousands)
 Quarter ended March 31
 1992 1991
 Average balances
 Balance Rate Balance Rate
 Assets:
 Loans, net of unearned
 income $9,736,547 8.81 $9,121,523 10.19
 Short-term investments 65,610 4.55 128,341 7.47
 Federal funds sold &
 securities purchased
 under resale agreements 1,120,418 4.07 735,628 6.51
 Investment securities:
 Taxable 3,530,393 7.91 2,894,774 8.66
 Tax-exempt 844,756 10.05 811,731 9.98
 Equity securities 17,236 6.59 24,560 9.38
 Total investment
 securities 4,392,385 8.31 3,731,065 8.95
 Trading securities 65,825 6.50 54,364 7.85
 Receivable due from Resolution
 Trust Corporation 1,128,364 8.03
 Total earning assets 15,380,785 8.30 14,899,285 9.50
 Less reserve for
 loan losses (182,467) (153,482)
 Cash and due from banks 1,229,194 1,062,361
 All other assets 854,709 750,002
 Total assets $17,282,221 $16,558,166
 Liabilities:
 Retail savings deposits and
 interest-bearing
 transaction accounts $5,032,815 3.76 $3,860,192 5.11
 Time deposits 5,752,927 5.66 6,767,950 7.27
 Total interest-bearing
 deposits 10,785,742 4.77 10,628,142 6.49
 Federal funds purchased and
 other short-term
 borrowings 1,978,201 4.01 2,065,990 6.14
 Capital lease obligation 40,619 9.72 41,283 9.72
 Long-term debt 237,151 9.45 204,140 9.60
 Total interest-bearing
 liabilities 13,041,713 4.76 12,939,555 6.49
 Demand deposits 2,727,673 2,292,780
 All other liabilities 152,347 165,948
 Total liabilities 15,921,733 15,398,283
 Redeemable preferred
 stock 1,267 1,322
 Total stockholders' equity 1,359,221 1,158,561
 Total liabilities and
 stockholders' equity $17,282,221 $16,558,166
 Interest rate spread 3.54 3.01
 Effect of noninterest-bearing funds 0.72 0.86
 Net interest margin 4.26 3.87
 Rates are computed on a fully taxable equivalent basis using the Federal statutory income tax rate of 34 percent, net of non-deductible interest expense.
 -0- 4/15/92
 /CONTACT: Philip N. McCarty of Boatmen's Bancshares, 314-466-7720/
 (BOAT) CO: Boatmen's Bancshares Inc. ST: Missouri IN: FIN SU: ERN


SH -- NY034 -- 8633 04/15/92 11:18 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 15, 1992
Words:2024
Previous Article:BRYN MAWR BANK CORPORATION REPORTS RESULTS
Next Article:COLONIAL HIGH INCOME MUNICIPAL TRUST FIRST QUARTER EARNINGS


Related Articles
BOATMEN'S BANCSHARES REPORTS 10.9 PERCENT GAIN IN FOURTH QUARTER NET INCOME
FIRST INTERSTATE OF IOWA REPORTS RESULTS
BOATMEN'S BANCSHARES REPORTS 31.3 PERCENT GAIN IN SECOND QUARTER NET INCOME
BOATMEN'S BANCSHARES REPORTS 36.7 PERCENT GAIN IN THIRD QUARTER NET INCOME
BOATMEN'S BANCSHARES REPORTS 36.7 PERCENT GAIN IN THIRD QUARTER NET INCOME
BOATMEN'S BANCSHARES REPORTS 13 PERCENT INCREASE IN OPERATING EARNINGS FOR FIRST QUARTER
BOATMENS BANCSHARES REPORTS 15 PERCENT INCREASE IN SECOND-QUARTER EARNINGS PER SHARE
Boatmen's Bancshares Reports 14 Percent Increase In Operating Earnings For Third Quarter
Nationsbank Earnings Per Share Increased 14% In First Quarter 1997
NationsBank Net Income Reached $762 Million In Second Quarter 1997

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters