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NORTHERN TRUST CORP. REPORTS RECORD 1993 FIRST QUARTER EARNINGS

 HIGHLIGHTS
 Northern Trust Corp. today reported record first quarter net income of $40.2 million, up 12 percent. Net income per common share of $.71 rose 11 percent from $.64 per share a year ago, reflecting the three- for-two stock split in December 1992.
 -- Return on average common equity was 18.44 percent.
 -- Return on average assets was 1.09 percent.
 -- Trust revenues rose 10 percent to a record $98.9 million and
 continued to be balanced between personal and corporate
 clients.
 -- Limited growth in expenses of 7 percent resulted in an improved
 operating margin.
 -- Nonperforming loans declined 16 percent and were covered 2.5
 times by the reserve for credit losses.
 -- Offices were opened in St. Petersburg, Fort Myers, and North
 Miami, Fla., this quarter.
 -- The Northern Trust International Banking Corp., located
 in the World Trade Center, continued to provide uninterrupted
 service to clients during the recent bombing and has now
 relocated back to the World Trade Center.
 CHICAGO, April 16 /PRNewswire/ -- Northern Trust Corp. (NASDAQ-NMS: NTRS) reported record unaudited net income of $40.2 million for the first quarter of 1993, an increase of 12 percent from the $35.8 million reported in 1992.
 Net income per common share on a fully diluted basis, reflecting the three-for-two stock split in December 1992, increased 11 percent to $.71 from $.64 in 1992. The annualized return on average common equity (ROE) was 18.4 percent while the return on average assets (ROA) was 1.09 percent for the first quarter compared with an ROE of 19.3 percent and an ROA of 1.12 percent in 1992.
 PERFORMANCE HIGHLIGHTS
 David W. Fox, chairman, president and chief executive officer, stated the following: "Northern's record results reflect the continued success of our strategic emphasis on fee-based financial services. Trust fees reached a new high and again exceeded net interest income. The increase in noninterest expense was limited to 7 percent, while planned investments in new technology continued on schedule. The slower growth in expenses, combined with an 8 percent increase in total revenues, resulted in an improvement in our operating margin.
 "Northern's balance sheet and asset quality remain strong, with total capital in excess of $1.0 billion and nonperforming loans declining 16 percent since year-end 1992. The outlook for continued growth in Northern's businesses remains positive."
 NONINTEREST INCOME
 Noninterest income totaled $137.6 million in the first quarter of 1993, and accounted for 61 percent of total taxable equivalent revenue, a 13 percent increase from the $122.1 million reported in 1992. Trust activities continued to generate record revenues and totaled $98.9 million, up 10 percent or $9.2 million from $89.7 million last year. Trust revenues in the first quarter of 1993 represented 72 percent of noninterest income and 44 percent of total taxable equivalent revenue. Security distribution revenues amounted to $5.2 million versus $5.0 million in 1992. Other operating income increased 22 percent to $31.9 million from $26.1 million a year ago, reflecting $3.6 million in gains realized on the sale of mortgage loans, compared with $1.1 million a year ago. Strong foreign exchange trading profits and growth in banking-related fees were also contributors to the growth in other operating income. Gains from the sale of investment securities totaled $1.6 million versus $1.3 million last year.
 NET INTEREST INCOME
 Net interest income on a fully taxable equivalent basis totaled $87.3 million, an increase of 2 percent from $85.8 million earned in 1992. The growth in net interest income was attributable to an increase in average earning assets. The net interest margin declined from 3.10 percent last year to 2.75 percent, principally as a result of lower yields obtained on the repricing of fixed rate assets during the past year and a lower level of fees recognized on residential mortgage refinancings.
 PROVISION/RESERVE FOR CREDIT LOSSES
 The provision for credit losses totaled $6.0 million in the first quarter of 1993 compared with $7.0 million one year ago. Net loan charge-offs totaled $6.0 million (.35 percent of average loans) compared with $6.5 million (.39 percent of average loans) in the fourth quarter of 1992 and $6.9 million (.44 percent of average loans) in the first quarter of 1992. The reserve for credit losses totaled $145.5 million or 2.02 percent of outstanding loans at March 31, 1993, compared with $145.8 million or 2.27 percent of outstanding loans at March 31, 1992. Nonperforming assets declined to $81.1 million (including $24.0 million of other real estate owned or "OREO") at March 31, 1993, from $91.2 million (including $22.9 million of OREO) at Dec. 31, 1992, and $92.9 million (including $37.8 million of OREO) at March 31, 1992.
 NONINTEREST EXPENSES
 Noninterest expenses totaled $154.0 million in the first quarter, an increase of 7 percent or $10.5 million from $143.5 million in 1992, which included $3.6 million of OREO write-downs. Contributing to the 1993 expense growth were planned increases in salaries, benefits and systems development. The 7 percent increase in noninterest expenses versus the 8 percent growth in taxable equivalent revenue enabled the productivity ratio to increase to 146 percent from 145 percent one year ago. The productivity ratio is noninterest income plus net interest income on a fully taxable equivalent basis before the provision for credit losses divided by noninterest expenses.
 STATEMENT OF CONDITION
 Total assets were $15.3 billion at March 31, 1993, compared to $15 billion at Dec. 31, 1992, and averaged $14.9 billion for the quarter, an increase of 16 percent from the 1992 first quarter average of $12.8 billion. Loans and leases totaled $7.2 billion at March 31, 1993 and averaged $7.0 billion for the quarter, up 10 percent from $6.3 billion. Common stockholders' equity increased 19 percent to $877.7 million at March 31, 1993, compared with $735.5 million last year. Retained earnings growth was the major contributor to the increase in total stockholders' equity which exceeded $1.0 billion at March 31, 1993, versus $905.5 million last year. The corporation's risk-based capital ratios remain strong at 8.8 percent for Tier I and 12.3 percent for total capital at March 31, 1993. The risk-based capital ratios substantially exceeded the regulatory guidelines of 4 percent for Tier I and 8 percent for total capital. The leverage ratio (Tier I capital to first quarter average assets) of 6.0 percent at March 31, 1993, also exceeded the regulatory requirement of 3 percent.
 NORTHERN TRUST CORP.
 (Supplemental Consolidated Financial Information)
 STATEMENT OF INCOME STATISTICS ($ IN MILLIONS)
 FIRST QUARTER
 1993 1992 Percent
 Change
 Net Interest Income (Taxable Equivalent) $87.3 $85.8 1.7
 Less: Taxable Equivalent Adjustment 7.7 8.6 (11.0)
 Net Interest Income 79.6 77.2 3.1
 Provision for Credit Losses 6.0 7.0 (14.3)
 Trust Fees 98.9 89.7 10.2
 Security Distribution Commissions
 and Trading Income 5.2 5.0 5.1
 Other Operating Income
 Cash Management Fees 11.7 11.3 3.1
 Foreign Exchange Revenues 7.2 5.4 33.4
 Other 13.0 9.4 37.7
 Total Other Operating Income 31.9 26.1 21.9
 Investment Security Transactions 1.6 1.3 28.2
 Noninterest Expenses
 Salaries 72.9 64.6 12.8
 Staff Benefits 17.0 15.3 11.3
 Occupancy 13.7 13.4 2.2
 Other 50.4 50.2 0.4
 Total Noninterest Expenses 154.0 143.5 7.3
 Income Before Taxes 57.2 48.8 17.3
 Provision for Income Taxes 17.0 13.0 30.6
 NET INCOME $40.2 $35.8 12.4
 Preferred Dividends $1.6 $1.6 UNCH
 Average Common Shares Outstanding
 - Primary 54,479,957 53,746,481
 - Fully Diluted 55,893,947 53,751,345
 Per Common Share
 Net Income - Primary $0.71 $0.64 11.4
 - Fully Diluted 0.71 0.64 11.4
 Dividend Declared 0.185 0.16 15.6
 Book Value - End of Period 16.58 14.14 17.3
 RATIOS
 Return on - Average Assets 1.09 1.12
 - Average Common Equity 18.44 19.33
 Net Interest Margin 2.75 3.10
 NORTHERN TRUST CORP.
 (Supplemental Consolidated Financial Information)
 STATEMENT OF CONDITION STATISTICS ($ IN MILLIONS)
 MARCH 31
 1993 1992 Percent
 Change
 Total Assets $15,269.0 $13,154.5 16.1
 Earning Assets 13,139.2 11,584.6 13.4
 Loans and Leases 7,187.8 6,412.0 12.1
 Money Market Assets 1,753.5 2,041.2 (14.1)
 Securities 4,197.9 3,131.4 34.1
 Reserve For Credit Losses 145.5 145.8 (0.2)
 Deposits 9,545.3 8,444.5 13.0
 Demand and Other Noninterest Bearing 2,506.5 1,617.5 55.0
 Savings and Money Market Deposits 3,428.0 2,848.7 20.3
 Savings Certificates 1,221.1 1,437.3 (15.0)
 Other Time 384.8 488.5 (21.2)
 Foreign Offices - Demand 48.5 64.3 (24.7)
 - Time 1,956.4 1,988.2 (1.6)
 Borrowed Funds 3,595.9 3,119.8 15.3
 Stockholders' Equity 1,047.7 905.5 15.7
 Common Stockholders' Equity 877.7 735.5 19.3
 MARCH 31 DEC. 31 MARCH 31
 NONPERFORMING ASSETS ($ In Millions) 1993 1992 1992
 Nonaccrual Loans $57.1 $68.3 $55.1
 Other Real Estate Owned (OREO) 24.0 22.9 37.8
 Total Nonperforming Assets $81.1 $91.2 $92.9
 RATIOS
 Reserve for Credit Losses
 as a pct. of Loans 2.02 2.10 2.27
 Nonperforming Assets as a percent
 of Loans and OREO 1.12 1.31 1.44
 Tier 1 Capital to Risk-adjusted Assets 8.8 8.1 7.4
 Total Capital to Risk-adjusted Assets 12.3 11.6 11.3
 Leverage 6.0 6.1 5.8
 NORTHERN TRUST CORP.
 (Supplemental Consolidated Financial Information)
 AVERAGE STATEMENT OF CONDITION STATISTICS ($ IN MILLIONS)
 FIRST QUARTER
 1993 1992 Percent
 Change
 Total Assets $14,904.4 $12,822.6 16.2
 Earning Assets 12,850.9 11,114.2 15.6
 Loans and Leases 6,959.3 6,302.8 10.4
 Money Market Assets 1,898.8 1,579.8 20.2
 Securities 3,992.8 3,231.6 23.6
 Reserve For Credit Losses 145.5 145.8 (0.2)
 Deposits 9,899.0 8,598.0 15.1
 Demand and Other Noninterest Bearing 2,596.7 1,738.7 49.4
 Savings and Money Market Deposits 3,496.7 3,384.0 3.3
 Savings Certificates 1,229.1 1,498.1 (18.0)
 Other Time 385.3 465.2 (17.2)
 Foreign Offices - Demand 39.6 50.1 (21.0)
 - Time 2,151.6 1,461.9 47.2
 Borrowed Funds 2,923.1 2,693.1 8.5
 Stockholders' Equity 1,020.3 858.7 18.8
 Common Stockholders' Equity 850.3 711.8 19.5
 -0- 4/16/93
 /CONTACT: Sue A. Rageas of Northern Trust Public Relations Department, 312-444-4279/
 (NTRS)


CO: Northern Trust Corp. ST: Illinois IN: FIN SU: ERN

PS -- NY025 -- 6680 04/16/93 11:03 EDT
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Date:Apr 16, 1993
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