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FIRST NATIONAL BANK CORP. REPORTS RECORD SECOND-QUARTER AND SIX-MONTH OPERATING RESULTS

 CLINTON TOWNSHIP, Mich., July 21 /PRNewswire/ -- First National Bank Corp. (NASDAQ-NMS: MTCL) reported impressive results for the quarter and six months ended June 30, 1993. Net income for the quarter was $1,093,000, topping the $1.0 million mark for the first time in the history of the corporation. Fully diluted earnings per share were $0.66 for the three-month period, compared with $0.52 in the prior year. Operating earnings were also at record levels for the first half of the year, before a first-quarter accounting chargeheld six-month income to $929,000. On a fully diluted per-share basis, year-to-date income before accounting changes increased to $1.30, vs. $0.88 in the prior year. Fully diluted net income was $0.62 per share for the first six months, compared with $1.02 in 1992.
 Net interest income increased by 21 percent, to $5,240,000 in the second quarter, as interest income increased by $60,000, while interest expense was reduced by $855,000, compared with the same period last year. The provision for loan and lease losses was $225,000 for both quarters.
 For the first half of 1993, net interest income increased by $1,839,000, or 21 percent over 1992, to $10,420,000, due to a reduction in interest expense of $1,849,000. The loan loss provision was reduced by $175,000, to $450,000. The corporation's tax-equivalent net interest margin increased to 5.24 percent for the six months ended June 30, 1993, from 4.78 percent for the first half of 1992.
 Second-quarter noninterest income decreased by $203,000 from last year, to $963,000. Increases in service charges and other income were offset by a $372,000 decrease in securities gains. The prior year security gains were generated by portfolio repositioning activity. Noninterest expense for the quarter increased by $184,000, to $4,586,000 in 1993.
 Noninterest income for the first half of 1993 decreased by $129,000 from 1992, again, as reduced security gains offset increases in other areas. Six-month noninterest expense rose by $512,000, to $9,144,000 in the current year. The main reasons for the increase were higher salaries associated with the growth of the corporation, and increased advertising costs.
 Pre-tax income for the current quarter was $1,392,000, a 61-percent increase from $864,000 in 1992's second quarter. Income tax expense rose from $76,000 in 1992, to $299,000 for the latest three months. This resulted in after-tax net income of $1,093,000, an increase of nearly 39 percent over 1992's quarterly net of $788,000.
 For the first six months, income before taxes and accounting changes more than doubled to $2,656,000, from $1,282,000 in the prior year. Income tax expense was $544,000 in 1993, compared with a credit of $18,000 for the first six months of 1992. As announced last quarter, the corporation recorded a $1.2 million after-tax charge for prior years' expenses related to postretirement health benefits. This charge reduced the six-month net income to $929,000, compared with $1,531,000 in 1992. Net income for 1992 also included a one-time accounting credit for a change in the accounting method for income taxes.
 The corporation's vice chairman, president and CEO, Harold W. Allmacher, said the exceptionally strong results reflect the corporation's active participation in the Macomb County area economy, healthy loan demand, continued emphasis on cost containment, and the corporation's ability to widen net interest margins. Allmacher said the corporation expects to continue its momentum into the third quarter and second half of the year.
 At the close of the quarter, total assets reached $458.9 million, loans outstanding were $328.2 million, and deposits totaled $415.2 million.
 The corporation is completing a call of its 9.0-percent convertible subordinated debentures, originally due in 2004, in order to increase its capital position and reduce interest expense. Since last December, approximately $4.8 million (through June 30) of long-term debt has been converted to equity, mostly in non-cash transactions. Total common equity as of quarter-end stood at $32.9 million, up from $29.4 million at Dec. 31.
 The corporation's wholly owned bank subsidiary, First National Bank in Macomb County, has received regulatory approval to open a branch in the village of Romeo, in northern Macomb County. The branch is expected to open later in the year, and will bring the bank's total to 16 branch locations throughout the county.
 First National Bank Corp. is the parent holding company of First National Bank in Macomb County and Banker's Fund Life Insurance Co.
 FIRST NATIONAL BANK CORP.
 'MTCL' ON THE NASDAQ STOCK MARKET
 SELECTED FINANCIAL HIGHLIGHTS
 Three Months Ended Six Months Ended
 June 30, June 30,
 1993 1992 1993 1992
 (In thousands, except per-share data)
 Net interest income $5,240 $4,325 $10,420 $8,580
 Provision for loan and
 lease losses $225 $225 $450 $625
 Noninterest income $963 $1,166 $1,830 $1,959
 Noninterest expense $4,586 $4,402 $9,144 $8,632
 Income tax expense (credit) $299 $76 $544 ($18)
 Income before cumulative
 effects of changes in
 accounting principles $1,093 $788 $2,112 $1,300
 Cumulative effects of
 changes in accounting
 principles --- --- ($1,183) $231
 Net income $1,093 $788 $929 $1,531
 Fully diluted income per
 share before cumulative
 effects of changes in
 accounting principles $0.66 $0.52 $1.30 $0.88
 Fully diluted net income
 per share $0.66 $0.52 $0.62 $1.02
 Dividends per share $0.25 $0.24 $0.49 $0.46
 As of June 30,
 1993 1992
 (In thousands, except per-share data)
 Total assets $458,934 $436,723
 Total loans and leases $328,196 $291,091
 Total deposits $415,210 $394,217
 Total common stockholders' equity $32,852 $28,652
 Book value per share $21.03 $21.60
 -0- 7/21/93
 /CONTACT: Richard J. Miller of First National Bank, 313-465-2400, Ext. 240/
 (MTCL)


CO: First National Bank Corp. ST: Michigan IN: FIN SU: ERN

ML-SB -- DE003 -- 3817 07/21/93 09:39 EDT
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Publication:PR Newswire
Date:Jul 21, 1993
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