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FIRST SECURITY REPORTS THIRD CONSECUTIVE QUARTER OF RECORD EARNINGS

 FIRST SECURITY REPORTS THIRD CONSECUTIVE QUARTER OF RECORD EARNINGS
 SALT LAKE CITY, Oct. 13 /PRNewswire/ -- First Security Corp. (NASDAQ: FSCO) today reported net income of $24.12 million for the third quarter of 1992, an increase of $8.80 million (57.5 percent) over the third quarter of 1991. This is the third straight quarter in which First Security's quarterly earnings have set a new record high. Net income for the quarter generated a return on average assets (ROA) of 1.33 percent and a return on average equity (ROE) of 15.46 percent. Year-to-date net income for 1992 totaled $63.36 million, up $19.40 million (44.1 percent) over the like 1991 period. For the year- to-date, ROA was 1.18 percent and ROE was 13.98 percent.
 For the third quarter, fully-diluted net income per share was 61 cents, up 18 cents (41.9 percent) over the year-ago quarter. The year-to-date fully-diluted net income per share totaled $1.62, up 37 cents (29.6 percent) over the like period a year ago. Per share data have been restated to reflect a three-for-two stock split made in the form of a 50 percent stock dividend paid in May 1992.
 Spencer F. Eccles, chairman and chief executive officer of the Salt Lake City based regional banking and financial services company, said, "Based on performance for the past five years, First Security ranks 83rd in growth of earnings per share among all companies traded on the over- the-counter (OTC) market. We placed sixth in earnings per share growth over the period among the eight banking companies listed among the top 100 fastest growing companies." The fastest growing companies were listed in the August 1992 issue of Equities magazines. Any company that incurred a loss per share in any of the five years was excluded from the listing.
 Eccles added, "With each of the first three quarters of 1992 breaking all previous earnings records, First Security is well on its way to achieving the most profitable year in its 64 year history. Already, our year-to-date net income of $63.36 million has surpassed the $59.55 million earned for all of 1991. For both the third quarter of 1992 and the year-to-date period, this growth has been primarily due to the lower cost of funds, combined with moderate growth in earning assets and noninterest income, plus a reduced provision for loan losses."
 First Security's net interest income on a fully-taxable equivalent (FTE) basis was $86.39 million for the third quarter of 1992 and totaled $251.39 million for the year-to-date, increasing $14.02 million (19.4 percent) and $43.10 million (20.7 percent) from the corresponding 1991 periods. This improvement was primarily due to lower interest expense recorded in nearly every category, particularly in time certificates of deposit and short-term borrowings. Growth in installment loans was also a factor, reflecting First Security's position as a leading consumer lender in both Utah and Idaho. The resulting net interest margin widened to 5.29 percent for the third quarter and 5.18 percent for the year-to-date, up from 4.71 percent and 4.58 percent for the corresponding 1991 periods and a 4.63 percent average for all of 1991.
 The provision for loan losses was $6.39 million for the third quarter of 1992, down $5.63 million (46.8 percent) from the year-ago quarter, and included net loan chargeoffs of $3.65 million, down $5 million (57.8 percent). The year-to-date provision for loan losses totaled $24.98 million, down $5.84 million (18.9 percent) from the 1991 period, and included net loan chargeoffs of $18.02 million, down $3.24 million (15.2 percent).
 Noninterest income was $29.14 million for the third quarter of 1992 and $81.36 million for the year-to-date, increasing $2.07 million (7.6 percent) and $5.46 million (7.2 percent) from the corresponding year-ago periods. This growth came from increases in real estate loan service fees, other commissions and fees and service charges on accounts.
 Noninterest expense was $70.24 million for the third quarter of 1992 and $205.01 million for the year-to-date, up $7.54 million (12.0 percent) and $22.58 million (12.4 percent) from the respective 1991 periods. Business growth and recent acquisitions were the key factors for this increase. Nevertheless, First Security's efficiency ratio (the ratio of noninterest expenses to the sum of FTE net interest income and noninterest income) continued to improve, reaching 60.80 percent and 61.61 percent for the respective 1992 third quarter and year-to-date periods, compared with 63.05 percent and 64.19 percent for the respective year-ago periods.
 Nonperforming assets, which include nonaccruing and renegotiated loans plus other real estate owned (ORE), fell to $73.83 million at Sept. 30, 1992. Eccles said, "First Security's nonperforming assets are now at their lowest dollar level since 1981, and have been reduced $29.16 million (28.3 percent) from the year-ago quarter-end and $19.73 million (21.1 percent) from year-end 1991. In addition, nonperforming assets decreased $9.99 million in the second quarter of 1992, and $9.78 million in the third quarter; each of these quarterly reductions nearly equaled the $10.13 million reduction achieved for all of 1991." Nonperforming assets equaled 1.51 percent of total loans and ORE


at Sept. 30, 1992, which was the lowest ratio since 1978, and a decrease from 2.21 percent for the year-ago quarter-end and 1.96 percent at year-end 1991.
 Eccles stated, "It is, and will continue to be, First Security's policy to build its reserve for loan losses so as to create a conservative balance sheet that is capable of coping with any contingency over the longer term. This policy becomes even more important in view of continued national and world economic uncertainties." Accordingly, the reserve reached $98.98 million at Sept. 30, 1992, up $9.06 million (10.1 percent) from one year ago, and up $10.47 million (11.8 percent) from year-end 1991. The reserve equaled 2.04 percent of total loans and 207.21 percent of nonaccruing and renegotiated loans. This was stronger than the corresponding ratios of 1.95 percent and 129.76 percent one year ago, and 1.87 percent and 132.08 percent at year-end 1991.
 Eccles also reported that stockholders' equity totaled $624.55 million at Sept. 30, 1992, a gain of $73.92 million (13.4 percent) from one year ago and $55.36 million (9.7 percent) from year-end 1991. This brought the ratio of stockholders' equity to total assets to 8.38 percent, up from 8.15 percent and 8.11 percent at the end of the third and fourth quarters of 1991. For the like periods, the ratio of tangible common equity to total assets was 8.21 percent, up from 7.95 percent and 7.93 percent, respectively.
 Other significant third quarter 1992 information:
 -- Assets totaled $7.45 billion at Sept. 30, 1992, up
 $695.13 million (10.3 percent) from one year ago and
 $433.68 million (6.2 percent) from year-end 1991.
 -- Loans (net of unearned income but before reserves) totaled
 $4.85 billion, up $231.34 million (5.0 percent) from one year
 ago and $111.30 million (2.3 percent) from year-end 1991. This
 growth was achieved in spite of the sales of over $530 million of
 new real estate loans, mostly with servicing retained, and
 reflects high consumer and real estate loan production by First
 Security's bank subsidiaries.
 -- Deposits totaled $5.47 billion, up $272.43 million (5.2 percent)
 from one year ago and $132.97 million (2.5 percent) from
 year-end 1991.
 -- During the third quarter, First Security issued $75 million of
 7.5 percent Subordinated Notes due 2002, increasing long-term
 debt to $156.24 million, up $60.03 million (62.4 percent) from
 one year ago and up $68.72 million (78.5 percent) from
 year-end 1991. In October 1992, First Security called
 $25 million of 8.5 percent Private Placement Notes due 1997.
 -- The bid price of First Security common stock was $22.25 per share
 at the close of the market on Sept. 30, 1992, advancing
 36.2 percent from $16.33 per share on Sept. 30, 1991, and
 17.1 percent from $19 per share on Dec. 31, 1991. The $22.25
 price equaled 135.84 percent of the stock's book value at
 quarter-end, which was above the 106.01 percent and
 122.32 percent of book value for the year-ago and year-end 1991
 dates.
 -- On Oct. 1, 1992, First Security Bank of Utah closed the purchase
 of five branches of First Interstate Bank of Utah. These
 branches are located in Beaver, Milford, Roosevelt, Tooele and
 Vernal, Utah, and have combined deposits totaling $51.84 million
 in 10,239 accounts.
 The United States economy remained disappointingly weak through the third quarter of 1992, and the options available for a quick fix entering 1993 are virtually nonexistent. The presidential election may reduce the political uncertainty, at least temporarily, but fundamental economic solutions will likely remain elusive. It is hoped that American voters will send a clear message to both the legislative and executive branches that responsible economic policy changes must be forthcoming. The lingering, stale taste of pure politics as displayed during the past two years does little, however, to justify renewed confidence.
 The progress achieved in 1992 in correcting the structural problems of the United States economy has been in the right direction, but there is no way of knowing the extent of adjustment that still lies ahead as the result of continued deleveraging of American consumers and corporations. Many corporations have reduced salary and interest costs, thereby strengthening their balance sheets and increasing profitability. Similarly, consumer debt has diminished, but job losses have weakened personal income such that the debt-to-income ratio still remains high. On a net basis across the economy, job losses continue, consumer confidence erodes and sales decline. This contraction cycle has not been broken yet.
 Fortunately, the Intermountain Area economy is still prospering from its low point in the mid-1980s, and the outlook for 1993 is cautiously optimistic. Over the past four and a half years, annual job growth in Idaho and Utah ranked second and third nationally, behind top-ranked Nevada. Job expansion was diversified and built on fundamental, ongoing strength. A residential construction boom in both Utah and Idaho has provided significant economic momentum in 1992. Management hopes the Intermountain Area has the ability to sustain such economic performance, considering the sluggish national performance, and in light of such weakness, First Security has structured its balance sheet accordingly.
 First Security is the largest financial services organization headquartered in the Intermountain West. Incorporated in 1928, it is the oldest multistate bank holding company in the United States. First Security operates 207 full-service bank offices in Utah, Idaho, Oregon and Wyoming. Other subsidiaries include a leasing company, two insurance companies, an investment management company, a full-service broker/dealer operation, and an information technology subsidiary.
 -0- 10/13/92
 /CONTACT: Scott C. Ulbrich of First Security, 801-350-5706/
 (FSCO) CO: First Security Corp. ST: Utah IN: FIN SU: ERN


BB -- DV002 -- 9364 10/13/92 13:26 EDT
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