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EAB CONTINUES SIGNIFICANT EARNINGS GROWTH IN SECOND QUARTER 1993

 UNIONDALE, N.Y., July 22 /PRNewswire/ -- EAB today reported a 39.2 percent increase in earnings for the second quarter of 1993 compared with the same quarter of last year. Consolidated net income for the current quarter was $18.7 million compared with net income of $13.4 million in the year ago quarter. For the six months ended June 30, 1993, EAB earned $29.8 million, an increase of 31 percent over the earnings for the first half of last year.
 Commenting on the bank's strong performance, Edward Travaglianti, EAB president and chief operating officer, said, "I am pleased to note that we are ahead of last year in every major index of performance. Considering that 1992 was one of EAB's most profitable years, we are looking forward to a second half that will enable us to exceed last year. In this way we continue to solidify our position as one of the region's best performing banks, justifying our customers' and our shareholder's confidence in us."
 Net interest income increased $2 million, or 3.7 percent, compared with the second quarter of 1992. Average interest-earning assets increased to $5.29 billion for the second quarter compared with $4.37 billion a year ago. Average interest-bearing liabilities were $3.97 billion, compared with $3.25 billion during the prior year quarter.
 The provision for loan losses for the second quarter was $7.5 million, unchanged from a year ago. For the first half of 1993, the loan loss provision was $14.0 million compared with $20.1 million during the first half of 1992. At June 30, 1993, the allowance for loan losses was $76.2 million or 3.89 percent of total loans.
 Other operating income for the current quarter was $17.5 million representing an increase of $1.6 million over 1992 due principally to increased fees and other income. Other operating expenses for the second quarter totaled $46.8 million which were $1.7 million lower than the prior year period due to lower salary and benefit expense and other expenses.
 EAB's continuing earnings growth has further strengthened its strong capital base, resulting in a Tier 1 risk-based capital ratio of 12.96 percent and a total ratio of 14.23 percent at June 30, 1993.
 EAB is a full-service commercial bank with 88 locations in the New York City/Long Island area. It is New York State chartered and is a member of the F.D.I.C., the Federal Reserve System and the New York Clearing House Association.
 EAB is a subsidiary of ABN AMRO Bank N.V., the 15th largest bank in the world, with more than $250 billion in assets and more than 1,800 branches in 55 countries around the world.
 EAB AND SUBSIDIARIES
 Consolidated Balance Sheets
 (In thousands)
 As at 6/30/93 12/31/92 6/30/92
 Assets:
 Earnings Assets:
 Loans, net of unearned
 income $1,957,236 $1,926,102 $1,835,602
 Allowance for loan losses (76,171) (73,028) (71,230)
 Net loans 1,881,065 1,853,074 1,764,372
 Investment securities 3,421,210 3,162,443 2,433,823
 Trading account assets 5,786 7,675 12,176
 Federal funds sold and
 securities purchased under
 agreements to resell 600 75,000 100,696
 Interest-bearing deposits
 with banks 2,302 3,682 2,653
 Total investments 3,429,898 3,248,800 2,549,348
 Total earnings assets 5,310,963 5,101,874 4,313,720
 Cash and due from banks 304,442 332,195 307,360
 Premises and equipment, net 59,296 61,249 64,271
 Customers' acceptance liability 9,750 9,995 11,000
 Other real estate 14,512 14,288 11,122
 Other assets 101,540 118,774 114,742
 Total assets $5,800,503 $5,638,375 $4,822,215
 Liabilities:
 Deposits:
 Demand 1,297,780 1,302,968 1,092,024
 Savings 2,034,324 2,055,060 2,044,946
 Time 920,004 961,430 1,037,458
 Foreign offices 61,706 108,418 44,590
 Total deposits 4,313,814 4,427,876 4,219,018
 Borrowings:
 Federal funds purchased and
 securities sold under
 agreements to repurchase 425,501 437,789 93,467
 Short-term borrowings 473,657 112,441 4,336
 Total borrowings 899,158 550,230 97,803
 Total deposits and
 borrowings 5,212,972 4,978,106 4,316,821
 Acceptances outstanding 11,281 10,836 12,325
 Accrued expenses and
 other liabilities 5,446,466 5,314,182 4,530,213
 Shareholder's equity:
 Common stock 99,000 99,000 99,000
 Surplus 341,458 341,458 341,458
 Retained earnings (deficit) (86,421) (116,265) (148,456)
 Total shareholder's equity 354,037 324,193 292,002
 Total liabilities and
 shareholder's equity $5,800,503 $5,638,375 $4,822,215
 EAB AND SUBSIDIARIES
 Consolidated Financial Highlights
 (In thousands)
 Quarter ended June 30, 1993 1992(A)
 Net interest income $ 55,955 $ 53,975
 Provision for loan losses 7,500 7,500
 Other operating income 17,513 15,942
 Other operating expenses 46,763 48,480
 Net income 18,705 13,437
 Six months ended June 30,
 Net interest income 116,677 108,211
 Provision for loan losses 14,000 20,100
 Other operating income 23,518 32,935
 Other operating expenses 95,351 97,246
 Net income 29,844 22,800
 At June 30,
 Total assets 5,800,503 4,822,215
 Loans, net of unearned income 1,957,236 1,835,602
 Total investments 3,429,898 2,549,348
 Deposits 4,313,814 4,219,018
 Shareholder's equity 354,037 292,002
 Daily average for the quarter
 ended June 30,
 Total assets 5,686,231 4,769,148
 Loans, net of unearned income 1,958,611 1,848,898
 Total investments 3,332,776 2,522,823
 Deposits 4,357,581 4,196,783
 Shareholder's equity 344,639 286,189
 Financial Ratios at June 30,
 (in percents)
 Tier I equity to period end assets 6.10 6.06
 Risk-based capital ratios
 Tier I 12.96 11.28
 Total 14.23 12.55
 Allowance for loan losses to loans 3.89 3.88
 Net interest yield (quarter) 4.28 5.02
 Net interest yield (YTD) 4.53 5.06
 Average loans to average
 deposits (quarter) 44.95 44.06
 Average loans to average
 deposits (YTD) 44.76 44.28
 Annualized net income as
 a percentage of:
 Average total assets 1.06 0.96
 Average shareholder's equity 17.81 16.37
 EAB AND SUBSIDIARIES
 Consolidated Statement of Operations
 (In thousands)
 Quarter Six months
 Period ended June 30, 1993 1992(A) 1993 1992(A)
 Interest income
 Loans, including fees $ 43,958 $ 43,766 $ 86,765 $ 88,080
 Investment securities and
 trading account assets
 Taxable 47,222 41,898 99,932 87,217
 Non-taxable 40 38 76 125
 Other interest income 4 1,444 61 1,896
 Deposits with banks 49 226 124 482
 Total interest income 91,273 87,372 186,958 177,800
 Interest expense
 Deposits
 Savings 18,585 16,371 30,846 32,313
 Time 9,227 15,279 24,984 33,128
 Foreign offices 538 364 894 751
 Interest expense on
 deposits 28,350 32,014 56,724 66,192
 Borrowings
 Federal funds purchased and
 securities sold under
 agreements to repurchase 4,360 1,302 8,558 3,200
 Short-term borrowings 2,608 81 4,999 197
 Interest expense on
 borrowings 6,968 1,383 13,557 3,397
 Total interest expense 35,318 33,397 70,281 69,589
 Net interest income 55,955 53,975 116,677 108,211
 Provision for loan losses 7,500 7,500 14,000 20,100
 Other operating income
 Service charges on
 deposit accounts 9,783 9,176 19,268 18,066
 Other charges and fees 4,776 4,384 9,537 8,545
 Trading gains, net 913 968 1,902 1,605
 Investment securities
 transactions, net 1,011 734 (8,481) 3,817
 Other income 1,030 680 1,292 902
 Total other operating
 income 17,513 15,942 23,518 32,935
 Other operating expenses
 Salaries and employee
 benefits 19,972 21,124 40,586 47,061
 Occupancy expense, net 5,527 5,682 11,355 12,546
 Equipment expense 1,668 1,314 3,761 4,260
 Intercompany processing
 costs 10,668 10,430 21,257 11,457
 Other expenses 8,928 9,930 18,392 21,922
 Total other operating
 expenses 46,763 48,480 95,351 97,246
 Income before income taxes
 and extraordinary item 19,205 13,937 30,844 23,800
 Income taxes, net 500 500 1,000 1,000
 Net income $18,705 $13,437 $29,844 $22,800
 (A)Certain 1992 amounts have been reclassified to conform with the current year's presentation.
 -0- 7/22/93
 /CONTACT: Robert D. Kivelson of EAB, 516-296-5141/


CO: EAB ST: New York IN: FIN SU: ERN

WB-MP -- NY077 -- 4722 07/22/93 16:02 EDT
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