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FIRST CHICAGO REPORTS ANNUAL EARNINGS OF $116.3 MILLION; LOSS FOR FOURTH QUARTER OF $15.1 MILLION; REDUCES QUARTERLY DIVIDEND

FIRST CHICAGO REPORTS ANNUAL EARNINGS OF $116.3 MILLION; LOSS FOR FOURTH
 QUARTER OF $15.1 MILLION; REDUCES QUARTERLY DIVIDEND
 CHICAGO, Jan. 10 /PRNewswire/ -- First Chicago Corp. (NYSE: FNB) today announced a fourth quarter loss of $15.1 million, or 40 cents per share. Also, the board of directors reduced the quarterly common stock dividend to 30 cents per share from 50 cents per share.
 In the year-ago fourth quarter First Chicago earned $57.1 million or 75 cents per share, which included tax benefits of $9.3 million or 14 cents per share from the 1987 operating loss.
 Fourth quarter performance was heavily impacted by a $150 million provision for credit losses. Much of the increase in the provision, from $105 million in the third quarter, was due to major deterioration in two large credits: one in retailing and one in communications. The Corporation also incurred a $30 million provision for other real estate assets.
 The Corporation's nonperforming assets have declined more than $300 million from their March 31, 1991, peak of $1.6 billion. At Dec. 31, 1991, nonperforming assets were $1.3 billion, $144 million below the third quarter level. Nonperforming loans at the end of the fourth quarter declined to $843 million from $891 million at Sept. 30, 1991. The reserve coverage of nonperforming loans at year-end was 105 percent.
 Total other real estate assets declined $96 million in the quarter due largely to successful disposition efforts. For the year, the Corporation sold approximately $175 million of other real estate assets through this program. Aggressive efforts to further reduce nonperforming assets will continue.
 Fourth quarter results reflected $32 million of reserves established to further reduce the Corporation's expense base, including costs associated with occupancy, systems, selected asset dispositions and personnel.
 "Fourth quarter results were a disappointment, but we continued to strengthen our balance sheet by maintaining reserves at a high level and by limiting asset growth," Chairman Richard L. Thomas said.
 Commenting on the dividend reduction, Thomas added, "In view of the continued erosion in commercial real estate values, the uncertain economic environment, and the desire to build capital more rapidly, we concluded that a dividend reduction was appropriate at this time. Our new quarterly rate of 30 cents per share will enable us to retain a higher percentage of our earnings, and thus better prepare us for future business opportunities."
 The Corporation's common equity-to-assets ratio, net of its investment in its capital markets subsidiary, was 5.1 percent at Dec. 31, 1991, compared with 5.2 percent at Sept. 30, 1991. The estimated risk-adjusted Tier 1 capital ratio under 1992 regulatory rules was 5.5 percent and the total risk-adjusted
ratio was 9.4 percent. The book value of the Corporation's common equity was $34.90 per share at Dec. 31, 1991.
 Earnings for 1991 were $116.3 million, or $1.15 per share, down from 1990 earnings of $249.3 million, or $3.35 per share. Excluding tax benefits, 1990 net income was $221.1 million, or $2.92 per share.
 For the year, return on assets was 0.22 percent and return on common equity was 3.2 percent.
 NET INTEREST INCOME
 Net interest income on a tax-equivalent basis fell in the fourth quarter to $270.5 million, from $295.2 million a year ago due to a higher level of securitized credit card receivables.
 The Corporation's net interest margin was 2.40 percent in the fourth quarter, versus 2.56 percent in the third quarter and 2.54 percent in the year-ago period. Adjusted for the effects of securitization, the comparable margins were 2.89 percent in the fourth quarter, 3.04 percent in the third quarter and 2.89 percent in the year-ago quarter.
 Average earning assets were $44.7 billion for the fourth quarter, compared with $46.2 billion a year ago.
 NONINTEREST INCOME
 Noninterest income for the fourth quarter was $336.9 million, compared with $292.9 million in the year-ago quarter. Foreign exchange trading profits increased to $26.2 million, from $20.8 million in the 1990 fourth quarter. Trading account profits were $24.7 million compared with $24.9 million a year ago.
 Gains on the sale of equity securities were $32.7 million in the quarter. This figure includes net gains of $49 million generated from the venture capital business and net losses of $16.3 million in other equity securities. Equity securities gains in last year's fourth quarter were $17.5 million.
 Credit card fees increased to $113.8 million from $96.4 million a year ago. Fiduciary and investment management fees were $47.6 million, versus $44.0 million. Service charges and commissions were $93.7 million, compared with $79.3 million in the 1990 fourth quarter.
 NONINTEREST EXPENSE
 Noninterest expense for the fourth quarter was $479.2 million, compared with $405.2 million a year ago. Special nonrecurring charges of $32 million were included in this quarter's totals.
 Provisions for other real estate assets were $30 million in the 1991, fourth quarter, up from $4.3 million in the year-ago quarter.
 CREDIT QUALITY
 The provision for credit losses was $150 million in the fourth quarter. Of the total, $106 million was allocated for commercial exposure and $44 million for consumer exposure.
 Total net charge-offs in the fourth quarter were $142 million. Commercial loan net charge-offs were $113 million. Consumer loan net charge-offs were $29 million.
 At Dec. 31, 1991, the Corporation's allowance for credit losses was $884 million or 3.4 percent of loans. While the allowance is available to absorb potential losses in the Corporation's entire credit portfolio, its composition reflects internal allocations to specific portfolio sectors. The reserve related to the commercial portfolio was 3.3 percent of commercial loans. The reserve related to consumer credit was 4.0 percent of consumer loans.
 Total nonperforming loans declined to $843 million, or 3.3 percent of loans
at Dec. 31, 1991. Of these, nonperforming loans secured by commercial real estate were $287 million. Nonperforming loans in the highly-leveraged-transaction portfolio were $115 million. Troubled- country debtor nonperforming loans were $150 million.
 At Dec. 31, 1991, the Corporation had $457 million of other real estate assets that are carried at the lower of cost or fair market value.
 DIVIDEND
 The board of directors declared a quarterly dividend on the Corporation's common stock of 30 cents per share, payable on April 1, to stockholders of record March 6.
 Beginning with the second quarter of 1992, First Chicago's Board of Directors will consider the declaration of the common stock dividend in the middle month of each quarter, except for the third quarter when no board meeting is held in August. It is anticipated that dividend payment dates will remain the first business day of January, April, July, and October.
 The Corporation continues to offer the Dividend Reinvestment and Stock Purchase Plan.
 FIRST CHICAGO CORP. AND SUBSIDIARIES
 COMPARATIVE SUMMARY
 (Dollars in millions, except for per share data)
 Three Months Ended Dec. 31
 1991 1990 Change
 Net interest income -- tax-equivalent
 basis $ 270.5 $ 295.2 - 8
 Provision for credit losses 150.0 106.0 +42
 Noninterest income 336.9 292.9 +15
 Noninterest expense 479.2 405.2 +18
 Net income (loss) (15.1) 57.1 -
 Common Share Data
 Earnings per common share - primary (0.40) 0.75 -
 Earnings per common share - fully
 diluted (0.40) 0.75 -
 Average balances
 Loans 26,316 29,775 -12
 Earning assets 44,702 46,187 - 3
 Total assets 52,724 55,080 - 4
 Common equity 2,448 2,380 + 3
 Stockholders' equity 3,017 2,799 + 8
 Net interest margin 2.40 2.54 - 6
 Return on assets -0.11 0.41 -
 Return on common stockholders' equity -4.2 8.3 -
 For the Year
 1991 1990 Change
 Net interest income--tax-equivalent
 basis $1,117.9 $1,241.8 -10
 Provision for credit losses 440.0 494.0 -11
 Noninterest income 1,225.2 1,199.3 + 2
 Noninterest expense 1,701.3 1,590.7 + 7
 Net income 116.3 249.3 -53
 Common Share Data
 Earnings per common share - primary 1.15 3.35 -66
 Earnings per common share - fully
 diluted 1.15 3.32 -65
 Average balances
 Loans 27,281 30,609 -11
 Earning assets 44,512 45,502 - 2
 Total assets 52,655 53,097 - 1
 Common equity 2,431 2,343 + 4
 Stockholders' equity 2,938 2,762 + 6
 Net interest margin 2.51 2.73 - 8
 Return on assets 0.22 0.47 -53
 Return on common stockholders' equity 3.2 9.4 -66
 At Dec. 31
 1991 1990 Change
 Total assets $48,963 $50,779 - 4
 Total deposits 32,091 32,543 - 1
 Loans 25,661 27,706 - 7
 Stockholders' equity 2,970 2,812 + 6
 FIRST CHICAGO CORP. AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEET
 Dec. 31
 (Dollars in millions) 1991 1990
 Assets
 Cash and due from banks--noninterest bearing $ 3,420 $ 3,571
 Due from banks--interest bearing 6,175 5,385
 Federal funds sold and securities under resale
 agreements 5,208 5,893
 Trading account assets 1,954 1,326
 Investment securities 1,853 1,810
 Loans 25,661 27,706
 Less Allowance for credit losses 884 994
 Loans, net 24,777 26,712
 Premises and equipment 602 569
 Accrued income receivable 643 985
 Customers' acceptance liability 613 808
 Currency options purchased 1,254 1,588
 Other assets 2,464 2,132
 Total assets $48,963 $50,779
 Liabilities
 Deposits
 Demand $ 6,200 $ 7,065
 Savings 7,059 5,166
 Time 9,531 9,902
 Foreign offices 9,301 10,410
 Total deposits 32,091 32,543
 Federal funds purchased and securities under
 repurchase agreements 5,145 6,250
 Commercial paper 226 237
 Other funds borrowed 2,712 2,770
 Long-term debt 1,725 1,428
 Acceptances outstanding 613 808
 Currency options written 1,122 1,467
 Other liabilities 2,359 2,464
 Total liabilities 45,993 47,967
 Stockholders' Equity
 Preferred stock--without par value, authorized 15,000,000
 Outstanding shares:
 Series A ( $50 stated value)
 --2,410,000 shares 121 121
 Series B ($100 stated value)
 --1,191,000 shares 119 119
 Series C ($100 stated value)
 -- 713,800 shares 71 71
 Series D ( $25 stated value)
 --6,000,000 shares 150 -
 Convertible Series A ($50 stated value)
 --2,151,451 shares 108 108
 Common stock--$5 par value 345 330
 1991 1990
 Number of shares authorized 150,000,000 150,000,000
 Number of shares issued 68,948,611 66,089,900
 Number of shares outstanding 68,804,448 66,005,971
 Surplus 1,297 1,243
 Retained earnings 760 818
 Translation adjustments 3 4
 Total 2,974 2,814
 Less Treasury stock at cost 144,163 shares in
 1991 and 83,929 shares in 1990 4 2
 Stockholders' equity 2,970 2,812
 Total liabilities and
 stockholders' equity $48,963 $50,779
 FIRST CHICAGO CORP. AND SUBSIDIARIES
 CONSOLIDATED INCOME STATEMENT
 Three Months For the Year
 Ended Ended
 Dec. 31 Dec. 31
 (In millions, except for per
 share data) 1991 1990 1991 1990
 Interest Income
 Interest and fees on loans $561.8 $ 773.4 $2,476.0 $3,280.9
 Interest on bank balances 104.9 126.9 476.2 524.4
 Interest on federal funds sold
 and securities under resale
 agreements 83.6 114.7 329.3 368.6
 Interest on trading account
 assets 54.4 55.2 230.1 188.1
 Interest on investment
 securities
 U.S. government and federal
 agency 9.3 9.1 34.1 44.3
 States and political
 subdivisions 4.8 7.0 20.1 35.3
 Other (including dividends) 7.7 11.3 38.8 31.4
 Total 826.5 1,097.6 3,604.6 4,473.0
 Interest Expense
 Interest on deposits 371.0 571.4 1,713.9 2,292.0
 Interest on federal funds
 purchased and securities under
 repurchase agreements 99.5 152.5 428.2 593.2
 Interest on commercial paper 2.8 7.8 13.8 59.7
 Interest on other funds
 borrowed 59.5 49.4 240.4 207.3
 Interest on long-term debt 32.4 31.7 128.3 123.2
 Total 565.2 812.8 2,524.6 3,275.4
 Net Interest Income 261.3 284.8 1,080.0 1,197.6
 Provision for credit losses 150.0 106.0 440.0 494.0
 Net Interest Income After
 Provision for Credit Losses 111.3 178.8 640.0 703.6
 Noninterest income
 Trading accounting profits 24.7 24.9 90.7 60.6
 Foreign exchange trading
 profits 26.2 20.8 95.1 102.8
 Fiduciary and investment
 management fees 47.6 44.0 174.8 168.3
 Credit card fee revenue 113.8 96.4 411.8 354.5
 Service charges and commissions 93.7 79.3 348.7 307.4
 Equity securities gains 32.7 17.5 63.0 105.2
 Investment securities gains
 (losses) (3.5) 7.3 (3.3) 7.5
 Gain on partial settlement of
 pension obligations -- -- -- 55.5
 Other income 1.7 2.7 44.4 37.5
 Total 336.9 292.9 1,225.2 1,199.3
 Noninterest Expense
 Salaries and employee benefits 187.7 149.1 722.8 688.8
 Occupancy expense of premises,
 net 41.4 37.8 152.8 138.9
 Equipment rentals, depreciation
 and maintenance 27.8 27.2 107.5 101.5
 Provision for other real estate 30.0 4.3 104.3 24.8
 Restructuring provision 32.0 18.5 67.0 18.5
 Other expense 160.3 168.3 546.9 618.2
 Total 479.2 405.2 1,701.3 1,590.7
 Income (Loss) Before Income
 Taxes (31.0) 66.5 163.9 312.2
 Applicable income taxes
 (benefit) (15.9) 9.4 47.6 62.9
 Net Income (Loss) $(15.1)$ 57.1 $ 116.3 $ 249.3
 Net Income (Loss) Attributable
 to Common Stockholders' Equity $(26.1)$ 49.5 $ 78.1 $ 219.5
 Common and Common Equivalent
 Share Data
 Net income (loss)--Primary $(0.40) $0.75 $1.15 $3.35
 Net income (loss)--Fully
 diluted $(0.40) $0.75 $1.15 $3.32
 NOTE: The corporation, as of Jan. 1, 1991, no longer is charging off unpaid interest and fees on credit cards to the allowance for credit losses but is instead reversing them against their respective income statement categories. The financial statements for 1990 have been adjusted to reflect this change. There is no impact on net income, however, interest and fees for the fourth quarter and full year of 1990 were reduced by $4.0 million and $21.0 million, respectively, offset by a similar reduction in the provision for credit losses.
 FIRST CHICAGO CORP.
 CREDIT DATA
 For the Quarter Ending
 (Dollars in millions,
 except for per-share
 data) 12/31/91 9/30/91 6/30/91 3/31/91 12/31/90
 Provision for Credit
 Losses:
 Commercial $106 $ 71 $ 45 $ 55 $ 66
 Consumer 44 34 45 40 40
 Total 150 105 90 95 106
 Total Charge-offs 159 181 173 111 84
 Total Recoveries 17 14 28 15 25
 Net Charge-offs:
 Commercial:
 Highly Leveraged
 Transactions(HLT) 23 32 23 13 -
 Secured by
 Commercial Real
 Estate 44 72 25 1 10
 Other Commercial 46 36 58 45 15
 Total Commercial 113 140 106 59 25
 Consumer 29 27 39 37 34
 Total 142 167 145 96 59
 Nonperforming Loans:
 Highly Leveraged
 Transactions (HLT) 115 112 186 214 151
 Secured by Commercial
 Real Estate 287 303 307 343 235
 Troubled-Country
 Debtor (TCD) 150 152 178 213 210
 Other 291 324 278 309 258
 Total 843 891 949 1,079 854
 Other Real Estate 457 553 615 540 529
 Nonperforming Loans
 as a Percentage of
 Related Loans:
 Secured by
 Commercial Real
 Estate 7.9 8.1 8.0 8.6 5.8
 Other Commercial 3.5 3.5 4.0 4.2 3.6
 Total Commercial 4.4 4.4 4.8 5.0 4.0
 Total Loans 3.3 3.4 3.7 3.9 3.1
 Commercial Reserve as
 a Percentage of
 Related Loans 3.3 3.1 3.5 3.6 3.6
 Consumer Reserve as a
 Percentage of Related
 Loans 4.0 4.2 4.1 3.6 3.5
 Total Reserve as a
 Percentage of
 Nonperforming Loans 105 98 99 92 116
 CAPITAL DATA
 (Percent)
 12/31/91 9/30/91 6/30/91 3/31/91 12/31/90
 Common Equity/Assets(a) 5.1 5.2 5.3 5.0 4.8
 Risk-Based Capital
 Ratios: (b)
 Tier 1 5.5 5.6 5.5 5.0 4.9
 Total 9.4 9.3 9.3 8.5 8.3
 Book Value of Common
 Equity $34.90 $35.80 $36.27 $36.19 $36.27
 (A) -- Net of investment in First Chicago Capital Markets, Inc.
 (B) -- Based on 1992 guidelines. 12/31/91 ratios are estimated.
 FIRST CHICAGO CORP. AND SUBSIDIARIES
 Five-Quarter Consolidated Income Statement
 Three Months Ended
 Dec. 31 Sep. 30 June 30 Mar. 31 Dec. 31
 (Dollars in millions,
 except for per share
 data) 1991 1991 1991 1991 1990
 Interest Income
 Interest and fees on
 loans $561.8 $597.1 $631.9 $685.2 $ 773.4
 Interest on bank
 balances 104.9 113.2 120.9 137.2 126.9
 Interest on federal
 funds sold and
 securities under
 resale agreements 83.6 78.7 76.6 90.4 114.7
 Interest on trading
 account assets 54.4 61.0 56.3 58.4 55.2
 Interest on
 investment securities
 U.S. government and
 federal agency 9.3 9.3 7.8 7.7 9.1
 States and
 political
 subdivisions 4.8 4.9 5.2 5.2 7.0
 Other (including
 dividends) 7.7 6.4 9.8 14.9 11.3
 Total 826.5 870.6 908.5 999.0 1,097.6
 Interest Expense
 Interest on deposits 371.0 404.2 447.7 491.0 571.4
 Interest on federal
 funds purchased and
 securities under
 repurchase
 agreements 99.5 97.4 98.4 132.9 152.5
 Interest on
 comm3.5 54.9 49.4
 Interest on long-term
 debt 32.4 32.4 32.0 31.5 31.7
 Total 565.2 599.7 645.1 714.6 812.8
 Net Interest Income 261.3 270.9 263.4 284.4 284.8
 Provision for credit
 losses 150.0 105.0 90.0 95.0 106.0
 Net Interest Income
 After Provision for
 Credit Losses 111.3 165.9 173.4 189.4 178.8
 Noninterest Income
 Trading account
 profits 24.7 30.0 22.5 13.5 24.9
 Foreign exchange
 trading profits 26.2 20.1 19.3 29.5 20.8
 Fiduciary and
 investment management
 fees 47.6 44.2 43.0 40.0 44.0
 Credit card fee
 revenue 113.8 108.0 98.5 91.5 96.4
 Service charges and
 commissions 93.7 81.9 99.2 73.9 79.3
 Equity securities
 gains 32.7 15.6 11.0 3.7 17.5
 Investment security
 gains (losses). (3.5) - 0.1 0.1 7.3
 Other income 1.7 12.5 13.9 16.3 2.7
 Total 336.9 312.3 307.5 268.5 292.9
 Noninterest Expense
 Salaries and employee
 benefits 187.7 178.7 176.8 179.6 149.1
 Occupancy expense of
 premises, net 41.4 37.3 37.5 36.6 37.8
 Equipment rentals,
 depreciation and
 maintenance 27.8 27.0 26.0 26.7 27.2
 Provision for other
 real estate 30.0 40.0 19.7 14.6 4.3
 Restructuring
 provision 32.0 35.0 - - 18.5
 Other expense 160.3 127.3 134.8 124.5 168.3
 Total 479.2 445.3 394.8 382.0 405.2
 Income (Loss) Before
 Income Taxes (31.0) 32.9 86.1 75.9 66.5
 Applicable income
 taxes (benefit) (15.9) 8.3 28.8 26.4 9.4
 Net Income (Loss) $(15.1) $ 24.6 $ 57.3 $ 49.5 $ 57.1
 Net Income (Loss)
 Attributable to Common
 Stockholders Equity $(26.1) $ 13.4 $ 48.7 $ 42.1 $ 49.5
 Common and Common
 Equivalent Share Data
 Net income (loss)--
 Primary $(0.40) $0.19 $0.73 $0.63 $0.75
 Net income (loss)--
 Fully Diluted $(0.40) $0.19 $0.73 $0.63 $0.75
 Net Income Interest--
 Tax-equivalent Basis $270.5 $280.9 $275.0 $291.5 $295.2
 Average Earning
 Assets 44,702 43,563 44,107 45,677 46,187
 Net Interest Margin(pct.) 2.40 2.56 2.50 2.59 2.54
 -0- 1/10/92
 /CONTACT: Lisabeth Weiner, 312-732-4455; investor contacts: Colleen Mulligan, 312-732-4812, or Susan Temple, 312-732-8013, all of First Chicago Corp./
 (FNB) CO: First Chicago Corp. ST: Illinois IN: FIN SU: ERN PS -- NY046 -- 8685 01/10/92 14:37 EST
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No portion of this article can be reproduced without the express written permission from the copyright holder.
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