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/FIRST AND FINAL ADD -- NY007 -- FIRST CHICAGO EARNINGS/

 First Chicago Corporation (NYSE: FNB) today reported fourth quarter earnings of $136.6 million, or $1.53 per common share, compared with a loss of $15.1 million or 40 cents per share in the fourth quarter of 1991. Earnings for 1992 were $93.5 million, or $0.64 per share, compared with $116.3 million or $1.15 per share in 1991.
 "We finished the year with a quarter of strong core earnings, as each of our major businesses was on track relative to our plans," Chairman Richard L. Thomas said. "Our venture capital portfolio generated unusually high appreciation this quarter, and the credit card business was especially robust."
 Thomas added, "Commercial credit quality continues to improve. And we have had good success selling assets from our accelerated disposition portfolio early in the program. We are especially pleased that nonperforming assets have declined to the lowest level since 1985. Indeed, with the special actions taken in 1992, the true strengths of the corporation are now more visible. We enter 1993 with good momentum and the confidence that we are now well positioned to achieve our goals."
 FOURTH QUARTER HIGHLIGHTS
 Appreciation in the corporation's venture capital portfolio grew by $91 million since Sept. 30, of which $74 million was unrealized. This unrealized portion added 57 cents to earnings per share for the fourth quarter. The corporation's investment in a publicly held mobile communications company was the largest single contributor to the portfolio's appreciation.
 Combined commercial credit provisions declined significantly, as expected, to $33 million, or 83 basis points of related assets. This decline was due primarily to the accelerated disposition program initiated in the third quarter.
 Nonperforming assets, excluding the disposition portfolio, declined 20 percent from the Sept. 30 level to $414 million.
 The corporation liquidated approximately $190 million of real estate assets in the accelerated disposition portfolio during the quarter. These sales represented about 10 percent of the original $2 billion disposition portfolio. At year-end, the carrying value of the remaining disposition portfolio was approximately 46 percent of original contractual value.
 The corporation changed its accounting policy related to costs of sourcing credit card accounts through third-party marketing firms. This resulted in the recognition of $52 million in previously deferred costs, of which $20 million was incurred prior to 1992. Earnings per share were reduced by 7 cents for the fourth quarter and 43 cents for the year. These costs are now expensed when incurred.
 Earnings have been restated for the first three quarters of 1992 to reflect this accounting change.
 Capital ratios at year-end remained well above regulatory minimum guidelines. The estimated Tier 1 risk-adjusted capital ratio was 6.6 percent, and the estimated total risk-adjusted ratio was 10.8 percent.
 NET INTEREST INCOME
 For the fourth quarter, net interest income on a tax-equivalent basis was $326 million. Gains of $12 million were recorded on the sale of Brazilian bonds. Net interest margin was 2.72 percent for the quarter, and average earning assets were $47.7 billion.
 Adjusted for the effects of credit card securitization and the activity of First Chicago Capital Markets Inc., the corporation's investment banking subsidiary, net interest margin was 3.43 percent, compared with 3.39 percent in the third quarter of 1992.
 NONINTEREST INCOME
 Total noninterest income was $436 million for the fourth quarter. Combined trading activities generated profits of $34 million.
 Equity securities gains were $89 million in the fourth quarter, including $74 million of unrealized appreciation under the fair value accounting method. The remaining $15 million reflects net cash gains realized on the sale of equity securities.
 NONINTEREST EXPENSE
 Operating expenses were $461 million for the fourth quarter. The first three quarters of 1992 have been restated to reflect the change in accounting policy for credit card account solicitation costs.
 CREDIT QUALITY
 At Dec. 31, 1992, total exposure in the disposition portfolio was $1.037 billion, down $155 million from Sept. 30, reflecting progress in selling these assets. The carrying value of this portfolio declined to approximately 46 percent of original contractual value from 49 percent at Sept. 30.
 Nonperforming assets, excluding the accelerated disposition portfolio, were $414 million or 1.8 percent of loans and other real estate at year-end.
 The provision for credit losses was $80 million in the fourth quarter, including $31 million for commercial credits and $49 million for the consumer portfolio. The provision for other real estate was $1.5 million.
 Net charge-offs in the fourth quarter were $34 million. Commercial net charge-offs were $9 million, reflecting gross recoveries of $23 million, primarily related to an international credit. Consumer net charge-offs, mainly for the credit card portfolio, were $25 million.
 FULL YEAR 1992 HIGHLIGHTS
 The key factor in 1992 results was the special provision of $625 million ($5.14 per share) related to the decision to accelerate the disposition of $2 billion in commercial real estate exposure.
 The corporation adopted fair value accounting for its venture capital portfolio, resulting in the recognition of $438 million ($3.60 per share) in unrealized appreciation for the portfolio.
 The corporation strengthened its capital position during the year by raising $292 million (9.2 million shares) in a common stock offering and $100 million in preferred equity.
 Pursuant to a program to improve profitability, the commercial loan portfolio declined about $2.2 billion, or 12 percent, during the year. Additional resources were allocated to the consumer and middle-market businesses and total credit card receivables grew 15 percent in 1992.
 Noninterest expense included charges of $86 million, principally for the establishment of reserves associated with occupancy, asset disposition and litigation matters. In addition, the impact of the change in accounting policy for credit card solicitation costs increased noninterest expense in 1992 by $32 million.
 FIRST CHICAGO CORPORATION AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEET
 December 31
 (Dollars in millions) 1992 1991
 Assets
 Cash and due from banks--noninterest-bearing $ 3,222 $ 3,420
 Due from banks--interest-bearing 6,116 6,175
 Federal funds sold and securities under resale
 agreements 6,892 5,208
 Trading account assets 3,312 1,954
 Investment securities 2,400 1,853
 Loans 22,692 25,661
 Less allowance for credit losses 791 884
 Loans, net 21,901 24,777
 Assets held for accelerated disposition 876 -
 Premises and equipment 593 602
 Accrued income receivable 522 643
 Customers' acceptance liability 560 613
 Currency options purchased 622 1,254
 Other assets 2,265 2,464
 Total assets $49,281 $48,963
 LIABILITIES
 Deposits
 Demand $ 7,575 $ 6,200
 Savings 7,618 7,059
 Time 6,262 9,531
 Foreign offices 8,285 9,301
 Total deposits 29,740 32,091
 Federal funds purchased and securities under
 repurchase agreements 6,962 5,145
 Commercial paper 172 226
 Other funds borrowed 3,997 2,712
 Long-term debt 1,705 1,725
 Acceptances outstanding 560 613
 Currency options written 612 1,122
 Other liabilities 2,132 2,359
 Total liabilities 45,880 45,993
 STOCKHOLDERS' EQUITY
 Preferred stock 669 569
 Common stock--$5 par value 412 345
 1992 1991
 Number of shares authorized 150,000,000 150,000,000
 Number of shares issued 82,353,507 68,948,611
 Number of shares outstanding 82,331,001 68,804,448
 Surplus 1,599 1,297
 Retained earnings 721 760
 Translation adjustments 1 3
 Total 3,402 2,974
 LESS TREASURY STOCK AT COST 22,506 SHARES IN 1992
 AND 144,163 SHARES IN 1991 1 4
 Stockholders' equity 3,401 2,970
 Total liabilities and stockholders'
 equity $49,281 $48,963
 FIRST CHICAGO CORPORATION AND SUBSIDIARIES
 CONSOLIDATED INCOME STATEMENT
 Three Months Ended Twelve Months Ended
 December 31 December 31
 (In millions, except per share 1992 1991 1992 1991
 data)
 INTEREST INCOME
 Interest and fees on loans $450.6 $561.8 $1,894.4 $2,476.0
 Interest on bank balances 82.6 104.9 358.0 476.2
 Interest on federal funds sold
 and securities under resale
 agreements 74.8 83.6 284.8 329.3
 Interest on trading account
 assets 61.5 54.4 259.0 230.1
 Interest on investment
 securities (including
 dividends) 17.7 21.8 73.4 93.0
 Total 687.2 826.5 2,869.6 3,604.6
 Interest Expense
 Interest on deposits 186.0 371.0 973.7 1,713.9
 Interest on federal funds
 purchased and securities under
 repurchase agreements 87.5 99.5 345.3 428.2
 Interest on commercial paper 1.7 2.8 8.8 13.8
 Interest on other funds
 borrowed 61.9 59.5 231.9 240.4
 Interest on long-term debt 29.5 32.4 126.9 128.3
 Total 366.6 565.2 1,686.6 2,524.6
 Net Interest Income 320.6 261.3 1,183.0 1,080.0
 Provision for credit losses 80.0 150.0 425.0 440.0
 Provision for loans held for
 accelerated disposition - - 491.0 -
 Net Interest Income After
 Provision for Credit Losses
 and Provision for Loans Held
 for Accelerated Disposition 240.6 111.3 267.0 640.0
 Noninterest Income
 Trading account profits 3.7 24.7 67.8 90.7
 Foreign exchange trading
 profits 30.4 26.2 109.5 95.1
 Equity securities gains 89.2 32.7 204.6 63.0
 Investment security gains
 (losses) - (3.5) 8.6 (3.3)
 Market-driven revenue 123.3 80.1 390.5 245.5
 Fiduciary and investment
 management fees 44.9 47.6 189.8 174.8
 Credit card fee revenue 153.2 113.8 516.1 411.8
 Service charges and commissions 111.7 93.7 381.0 348.7
 Other income 2.9 1.7 10.8 44.4
 Total 436.0 336.9 1,488.2 1,225.2
 Noninterest Expense
 Salaries and employee benefits 188.9 187.7 748.0 722.8
 Occupancy expense of premises,
 net 44.7 41.4 186.0 152.8
 Equipment rentals, depreciation
 and maintenance 28.0 27.8 111.2 107.5
 Other expense 199.6 160.3 719.2 546.9
 Subtotal 461.2 417.2 1,764.4 1,530.0
 Provision for other real estate
 held for accelerated
 disposition - - 134.0 -
 Provision for other real estate 1.5 30.0 56.9 104.3
 Restructuring provision - 32.0 - 67.0
 Total 462.7 479.2 1,955.3 1,701.3
 Income (Loss) Before Income
 Taxes 213.9 (31.0) (200.1) 163.9
 Applicable income taxes
 (benefit) 77.3 (15.9) (85.6) 47.6
 Income (Loss) Before Cumulative
 Effect of Changes in Accounting
 Principles 136.6 (15.1) (114.5) 116.3
 Cumulative Effect of Changes in
 Accounting Principles --
 Valuation of Venture Capital
 Investment Securities - - 220.7 -
 Recognition of credit card
 solicitation costs - - (12.7) -
 Net Income (Loss) $ 136.6 $(15.1) $ 93.5 $116.3
 Net Income (Loss) Attributable
 to Common Stockholders'
 Equity $ 124.7 $(26.1) $ 48.9 $ 78.1
 Earnings Per Share
 Primary
 Income (loss) before cumulative
 effect of changes in
 accounting principles $ 1.53 $(0.40) $(2.08) $1.15
 Cumulative effect of changes
 in accounting principles --
 Valuation of venture
 capital investment
 securities - - 2.89 -
 Recognition of credit card
 solicitation costs - - (0.17) -
 Net income (loss) $ 1.53 $(0.40) $ 0.64 $1.15
 Fully Diluted
 Income (loss) before cumulative
 effect of changes in
 accounting principles $ 1.49 $(0.40) $(2.08) $1.15
 Cumulative effect of changes
 in accounting principles --
 Valuation of venture
 capital investment
 securities - - 2.89 -
 Recognition of credit card
 solicitation costs - - (0.17) -
 Net income (loss) $ 1.49 $(0.40) $ 0.64 $1.15
 FIRST CHICAGO CORPORATION AND SUBSIDIARIES
 FIVE-QUARTER CONSOLIDATED INCOME STATEMENT
 Three Months Ended
 Dec. 31 Sept. 30 June 30 Mar. 31 Dec. 31
 (Dollars in millions, 1992 1992 1992 1992 1991
 except per share data) Restated Restated Restated
 INTEREST INCOME
 Interest and fees on
 loans $450.6 $ 448.6 $490.7 $504.5 $561.8
 Interest on bank
 balances 82.6 90.7 88.8 95.9 104.9
 Interest on federal
 funds sold and
 securities under
 resale agreements 74.8 64.8 73.4 71.8 83.6
 Interest on trading
 account assets 61.5 69.3 65.4 62.8 54.4
 Interest on investment
 securities (including
 dividends) 17.7 16.3 19.4 20.0 21.8
 Total 687.2 689.7 737.7 755.0 826.5
 INTEREST EXPENSE
 Interest on deposits 186.0 229.7 263.9 294.1 371.0
 Interest on federal
 funds purchased and
 securities under
 repurchase
 agreements 87.5 82.5 89.3 86.0 99.5
 Interest on commercial
 paper 1.7 2.5 2.3 2.3 2.8
 Interest on other
 funds borrowed 61.9 57.0 58.6 54.4 59.5
 Interest on long-term
 debt 29.5 31.0 33.5 32.9 32.4
 Total 366.6 402.7 447.6 469.7 565.2
 Net Interest Income 320.6 287.0 290.1 285.3 261.3
 Provision for credit
 losses 80.0 145.0 105.0 95.0 150.0
 Provision for loans
 held for accelerated
 disposition - 491.0 - - -
 Net Interest Income
 (Loss) After Provision
 for Credit Losses and
 Provision for Loans
 Held for Accelerated
 Disposition 240.6 (349.0) 185.1 190.3 111.3
 Noninterest Income
 Trading account
 profits 3.7 26.1 21.1 16.9 24.7
 Foreign exchange
 trading profits 30.4 48.7 15.9 14.5 26.2
 Equity securities
 gains (losses) 89.2 28.4 (7.0) 94.0 32.7
 Investment security
 gains (losses) - 0.1 2.2 6.3 (3.5)
 Market-driven revenue 123.3 103.3 32.2 131.7 80.1
 Fiduciary and
 investment management
 fees 44.9 49.8 48.5 46.6 47.6
 Credit card fee revenue 153.2 138.6 116.6 107.7 113.8
 Service charges and
 commissions 111.7 91.6 87.6 90.1 93.7
 Other income 2.9 1.5 2.9 3.5 1.7
 Total 436.0 384.8 287.8 379.6 336.9
 Noninterest Expense
 Salaries and employee
 benefits 188.9 188.0 183.2 187.9 187.7
 Occupancy expense of
 premises, net 44.7 65.9 37.2 38.2 41.4
 Equipment rentals,
 depreciation and
 maintenance 28.0 28.2 27.3 27.7 27.8
 Other expense 199.6 203.3 155.4 160.9 160.3
 Subtotal 461.2 485.4 403.1 414.7 417.2
 Provision for other
 real estate held for
 accelerated
 disposition - 134.0 - - -
 Provision for other
 real estate 1.5 10.4 22.0 23.0 30.0
 Restructuring
 provision - - - - 32.0
 Total 462.7 629.8 425.1 437.7 479.2
 INCOME (LOSS) BEFORE
 Income Taxes 213.9 (594.0) 47.8 132.2 (31.0)
 Applicable income
 taxes (benefit) 77.3 (221.6) 13.3 45.4 (15.9)
 Income (Loss) Before
 Cumulative Effect of
 Changes in Accounting
 Principles 136.6 (372.4) 34.5 86.8 (15.1)
 Cumulative Effect of
 Changes in Accounting
 Principles --
 Valuation of Venture
 Capital Investment
 Securities - - - 220.7 -
 Recognition of
 credit card
 solicitation costs - - - (12.7) -
 Net Income (Loss) $136.6 $(372.4) $ 34.5 $294.8 $(15.1)
 Net Income (Loss)
 Attributable to Common
 Stockholders' Equity $124.7 $(383.4) $ 23.7 $283.9 $(26.1)
 Earnings Per Share
 Primary
 Income (loss) before
 cumulative effect of
 changes in accounting
 principles $1.53 $(4.74) $0.32 $ 1.08 $(0.40)
 Cumulative effect of
 changes in accounting
 principles --
 Valuation of venture
 capital investment
 securities - - - 3.16 -
 Recognition of
 credit card
 solicitation costs - - - (0.18) -
 Net Income (loss) $1.53 $(4.74) $0.32 $ 4.06 $(0.40)
 Fully Diluted
 Income (loss) before
 cumulative effect of
 changes in accounting
 principles $1.49 $(4.74) $0.32 $ 1.06 $(0.40)
 Cumulative effect of
 changes in accounting
 principles --
 Valuation of venture
 capital investment
 securities - - - 3.02 -
 Recognition of
 credit card
 solicitation costs - - - (0.17) -
 Net Income (loss) $1.49 $(4.74) $0.32 $ 3.91 $(0.40)
 FIRST CHICAGO CORPORATION
 CREDIT DATA -- Excluding Accelerated Disposition Portfolio(A)
 For the Quarter Ending
 (Dollars in millions, except
 for per-share data) 12/31/92 9/30/92 6/30/92 3/31/92 12/31/91
 PROVISION FOR CREDIT LOSSES:
 Commercial $ 31 $102 $ 65 $ 63 $103
 Consumer 49 43 40 32 47
 Total 80 145 105 95 150
 Total Charge-offs 69 131 133 128 162
 Total Recoveries 35 18 18 17 20
 Net Charge-offs:
 Commercial:
 Highly Leveraged Transactions
 (HLT) - 16 6 24 23
 Commercial Real Estate 10 53 45 19 53
 Other Commercial (1) 20 30 33 36
 Total Commercial 9 89 81 76 112
 Consumer 25 24 34 35 30
 Total 34 113 115 111 142
 NONPERFORMING ASSETS:
 Highly Leveraged Transactions
 (HLT) 94 91 132 153 115
 Commercial Real Estate 93 103 368 273 309
 Troubled-Country Debtor
 (TCD) 76 84 83 149 150
 Other 128 184 212 272 269
 Nonperforming loans (NPL) 391 462 795 847 843
 Other Real Estate, net 23 54 479 486 457
 Total Nonperforming
 Assets (NPA) 414 516 1,274 1,333 1,300
 NPA as Percentage of Loans and
 Other Real Estate (pct.) 1.8 2.3 5.1 5.3 5.0
 Total Reserve as a
 Percentage of Loans 3.5 3.4 3.5 3.5 3.4
 Total Reserve as a
 Percentage of
 Nonperforming Loans 202 161 108 102 105
 (A) Accelerated disposition portfolio was established September
 1992; prior periods have not been adjusted.
 FIRST CHICAGO CORPORATION
 CREDIT DATA--ACCELERATED DISPOSITION PORTFOLIO
 (In m/30/92
 Loans
 Performing $ 504 $ 570
 Nonperforming 115 130
 Other Real Estate Assets 257 350
 Subtotal 876 1,050
 Off-Balance Sheet Exposure 161 142
 Total Portfolio $1,037 $1,192
 Carrying Value as a Percentage of Original
 Contractual Exposure 46% 49%
 CAPITAL DATA
 12/31/92 9/30/92 6/30/92 3/31/92 12/31/91
 Restated Restated Restated
 Restated Restated
 (In Percent)
 Common Equity/Assets(A) 5.9 5.5 6.5 5.9 5.1
 Risk-Based Capital
 Ratios:(B)
 Tier 1 6.6 6.0 6.8 6.3 5.5
 Total 10.8 10.1 11.0 10.4 9.4
 Leverage Ratio 6.6 6.1 7.0 6.3 5.8
 Book Value of Common
 Equity $33.19 $32.51 $37.62 $38.42 $34.90
 (A) Net of investment in First Chicago Capital Markets, Inc.
 (B) Based on 1992 guidelines. 12/31/92 ratios are estimated.
 -0- 1/14/93
 /END FIRST AND FINAL ADD/
 /PRNewswire -- Jan. 14/
 (FNB)


CO: First Chicago Corporation ST: Illinois IN: FIN SU: ERN PS -- NY007A -- 4738 01/14/93 09:40 EST
COPYRIGHT 1993 PR Newswire Association LLC
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