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BANK OF BOSTON SUMMARY AND THIRD QUARTER '92 RESULTS

 BANK OF BOSTON SUMMARY AND THIRD QUARTER '92 RESULTS
 BOSTON, Mass., Oct. 22 /PRNewswire/ -- Common Dividend Declaration: Bank of Boston Corporation (NYSE: BKB) announced a decision by its Board of Directors to declare a quarterly common dividend of 10 cents per common share. This maintains the corporation's standing as among institutions having the longest history of paying dividends in consecutive years.
 -- Third Quarter Profits: The corporation today reported its fifth consecutive quarter of profitability, posting $70 million in net income, or 73 cents per common share, for the third quarter. This compares to net income of $18 million, or 20 cents per share, for the same quarter a year ago. Bank of Boston had net income of $57 million for the first quarter of 1992 and $62 million for the second quarter bringing total 1992 profits to $189 million.
 -- Nonperforming Assets Continue Steep Decline: Bank of Boston reduced nonaccrual loans and Other Real Estate Owned by $178 million, or 17 percent in the third quarter. This represents a 51 percent decrease from one year ago. The current level of nonperforming assets, at $846 million, or 3.8 percent of related assets, is at its lowest point in over five years. OREO properties with a total carrying value of $69 million were sold in the third quarter alone, bringing the total of OREO sold since the beginning of 1989 to approximately $560 million.
 -- Credit Quality Continues To Improve: This marks the fourth consecutive quarter in which nonperforming assets have been reduced before the effect of chargeoffs. Inflow of nonperformers for the third quarter totaled $163 million. Outflows before the effect of chargeoffs and write-downs were $250 million.
 -- Capital Strengthened: Stockholders equity and reserves grew to $3 billion at Sept. 30, 1992, and estimated Tier 1 and total risk based capital ratios increased in the third quarter to 7.0 percent and 11.4 percent. This strengthened capital position includes the effect of the $223 million of net proceeds from the corporation's preferred stock offering in August.
 -- New Business Generation: The corporation has issued loan commitments exceeding $1.2 billion since the announcement of its $3 billion Bank of Boston Credit Initiative in May. This represents transactions involving 858 customers regionwide, 390 of which are new to the bank.
 -- New England Expansion: The corporation also announced in the third quarter agreements in principle to acquire Multibank Financial Corporation, a five bank holding company based in Dedham, Mass., and Society for Savings, a 19-branch institution based in Hartford, Conn. Society for Savings also operates Fidelity Acceptance Corporation, a nationwide consumer finance company with 102 offices in 22 states.
 ---- BANK OF BOSTON REPORTS THIRD QUARTER NET INCOME OF $70 MILLION; DECLARES COMMON DIVIDEND; NONPERFORMING ASSETS DECLINED $178 MILLION
 Bank of Boston Corporation reported today net income of $70 million, or 73 cents per common share on a fully diluted basis. This compares with net income of $18 million, or 20 cents per share in the third quarter of 1991. Net income for the first nine months of 1992 was $189 million, compared with a net loss of $120 million for the same period in 1991. On a fully diluted basis, net income per share for 1992's nine month period was $2.10, compared with a loss of $1.74 for the same period in the prior year.
 The corporation announced today a decision by its Board of Directors to declare a quarterly common dividend of 10 cents per common share. For the third quarter:
 -- Nonaccrual loans and OREO were $846 million, a reduction of $178 million, or 17 percent, since June 30, 1992, and a reduction of $866 million, or 51 percent, from the Sept. 30, 1991 level. During the quarter, OREO properties with a total carrying value of $69 million were sold;
 -- Net credit losses were $46 million, compared with $45 million in the prior quarter and $75 million in the third quarter of 1991;
 -- The provision for credit losses was $20 million, compared with $25 million in the previous quarter and $75 million in the third quarter of 1991;
 -- The reserve for credit losses as a percent of nonaccrual loans rose to 167 percent from 142 percent at June 30, 1992 and 83 percent at Sept. 30, 1991;
 -- Pre-tax income before credit costs (loan loss provision and OREO expense) and special items was $138 million, compared with $136 million in the prior quarter and $134 million in the last year's third quarter;
 -- Net interest revenue, on a taxable equivalent basis, was $281 million, compared with $270 million in the prior quarter and $231 million in the third quarter of 1991;
 -- Noninterest income of $155 million included a $14 million charge to mortgage servicing fees as a result of a reduction in the estimated life for purchased mortgage servicing rights and the write-down of excess mortgage servicing receivables, reflecting a higher rate of mortgage prepayments in the current low interest rate environment. This compares with noninterest income of $157 million in the prior quarter and $184 million in the third quarter of 1991;
 -- Noninterest expense, excluding OREO costs and special items, was $296 million, compared with $289 million in the second quarter of 1992 and $277 million in the third quarter of 1991;
 -- Stockholders' equity and reserves equaled $3.0 billion, and estimated tier 1 and total risk-based capital ratios increased in the quarter to 7.0 percent and 11.4 percent from 6.0 percent and 10.3 percent, respectively, at the end of the prior quarter. The increase in these ratios included the effect of $223 million of net proceeds from the corporation's preferred stock offering completed on August 13.
 Chairman and Chief Executive Officer Ira Stepanian said, "This has been an excellent quarter for Bank of Boston, one marked by several important milestones. Foremost was the decision to restore the common dividend. Integral to that decision was the consistent improvement in operating performance, which included additional earnings growth this quarter along with further significant reductions in nonperforming assets. We are very pleased to share our progress with our loyal and patient stockholders and maintain our standing among U.S. institutions having the longest history of paying dividends in consecutive years. We also raised $223 million of capital through the issuance of preferred stock -- our second successful equity offering this year. Since the beginning of the year, we have grown capital by $558 million, both from external sources and internal equity generation. In looking toward the future, we announced agreements to acquire two very attractive banking franchises in Society for Savings Bancorp in Connecticut and Multibank Financial Corp. in Massachusetts, subject to approval by regulators and the stockholders of these two institutions. These are strategic transactions to expand our retail and community presence in key New England markets and demonstrate our strong commitment to the regional marketplace."
 President Charles K. Gifford added, "We continue to be at the forefront of the industry in improving credit quality. We have consistently and aggressively written down our problem real estate assets to values that have enabled us to sell these assets in the aggregate at prices slightly above book value in each of the past five quarters. We are currently carrying OREO at approximately 46 percent of the original loan amounts and our level of nonperforming real estate has been reduced by 60 percent since its peak in 1990. In fact, total nonperforming assets and our credit loss experience are at their lowest levels in several years. This, in conjunction with our current reserve position, has provided us confidence to further reduce the provision for credit losses, while our reserve coverage to nonaccrual loans increased to 167 percent. We are especially encouraged that the ratio of nonaccrual loans and OREO to related assets has been cut in half to 3.8 percent from a year ago. Our focus remains on business generation as we continue to aggressively seek new and profitable relationships throughout the markets we serve. The response to our $3 billion New England Credit Initiative has been superb with over $1 billion in new loan commitments since its announcement in mid-May. We are continuing to do everything possible to meet the financing needs of credit-worthy businesses and to dispel perceptions of a credit crunch." Net Interest Revenue
 Net interest revenue, on a fully taxable equivalent basis, was $281 million for the third quarter of 1992, compared with $270 million in the prior quarter and $231 million for the same period in 1991. Net interest margin was 3.96 percent for the third quarter of 1992. This compares with 3.95 percent in the second quarter of 1992 and 3.19 percent in the third quarter of 1991. The increase in net interest revenue from the second quarter mainly reflects higher domestic loan fees principally from one large loan, and a higher volume of earning assets, primarily from the domestic securities portfolio and Latin American loans. For the first nine months of 1992, net interest revenue was $800 million and net interest margin was 3.82 percent, up from $665 million and 3.14 percent, respectively, for the same period last year. This increase in net interest revenue and margin over the comparable period last year reflected wider domestic spreads caused by lower funding costs, a decline in the level of nonperforming assets and higher net interest revenue in Latin America. The improvements in Latin American operations stem, in part, from currency positions taken in Brazil, based on management's evaluation of existing opportunities to maximize revenue; this was partially offset by translation/hedge losses in noninterest income. Noninterest income
 Noninterest income is comprised of the following:
 (in millions)
 Second
 Quarter Third Quarter Nine Months
 1992 1992 1991 Change 1992 1991 Change
 $83 Financial service fees $72 $82 $(10) $238 $233 $5
 38 Trust and agency fees 38 35 3 115 110 5
 5 Trading profits and 5 8 (3) 15 20 (5)
 commissions
 9 Securities portfolio 8 3 5 26 13 13
 gains
 22 Other income 32 56 (24) 96 129 (33)
 $157 Total $155 $184 $(29) $490 $505 $(15)


Financial Service Fees
 The details of financial service fees are as follows:
 Second
 Quarter Third Quarter Nine Months
 1992 1992 1991 Change 1992 1991 Change
 $25 Deposit fees $27 $24 $3 $78 $66 $12
 13 Letters of credit and 15 13 2 40 38 2
 acceptance fees
 Mortgage servicing fees:
 23 Fee income 24 23 1 73 67 6
 (11) Amortization of mortgage
 servicing intangibles (26) (10) (16) (48) (28) (20)
 12 Net mortgage (2) 13 (15) 25 39 (14)
 servicing fees
 9 Loan-related fees 9 8 1 25 22 3
 7 Factoring fees 8 9 (1) 23 25 (2)
 17 Other 15 15 0 47 43 4
 $83 Total $72 $82 $(10) $238 $233 $5
 In connection with its regular review of the mortgage servicing portfolio, the corporation reduced the estimated life of its purchased mortgage servicing rights and wrote down its excess mortgage servicing receivables as a result of the increased level of mortgage prepayments in the current low interest rate environment. This resulted in a $14 million charge to mortgage servicing fees in the third quarter of 1992. The corporation manages its economic exposure to mortgage prepayment risk principally by maintaining securities hedging positions. Other Income
 The components of other income are as follows:
 Second
 Quarter Third Quarter Nine Months
 1992 1992 1991 Change 1992 1991 Change
 $7 Mezzanine/venture $5 $19 $(14) $17 $29 $(12)
 capital profits, net
 4 Foreign exchange 13 9 4 21 23 (2)
 trading profits
 Gains from:
 4 Sale of mortgage 4 8 (4) 11 11 0
 servicing rights
 0 Recognition of deferred 0 0 0 16 0 16
 gain from 1984 sale of
 headquarters building
 (12) Net translation/hedge (10) (3) (7) (30) (2) (28)
 results from highly
 inflationary economies
 19 Other 20 23 (3) 61 68 (7)
 $22 Total $32 $56 $(24) $96 $129 $(33)
 Foreign exchange trading profits increased from prior quarters reflecting, in part, income earned from volatile European currency markets. In addition, net translation/hedge losses from highly inflationary economies reflect losses from currency positions taken in Brazil that were more than offset by increased net interest revenue from these same positions. Other income in the first nine months of 1992 included the recognition in the first quarter of the remaining unamortized gain from the 1984 sale of the corporation's headquarters building following the termination of the original lease agreement and subsequent entry into a new lease of the building. Noninterest expense
 The details of noninterest expense are as follows:
 (in millions)
 Second
 Quarter Third Quarter Nine months
 1992 1992 1991 Change 1992 1991 Change
 $157 Employee costs $164 $145 $19 $471 $444 $27
 49 Occupancy & equipment 49 52 (3) 149 158 (9)
 12 Professional fees 12 14 (2) 37 48 (11)
 71 Other 71 66 5 210 205 5
 289 Noninterest expense, 296 277 19 867 855 12
 excluding OREO costs
 and special charges
 27 OREO costs-(a) 28 29 (1) 89 91 (2)
 0 Restructuring expenses 0 0 0 0 47 (47)
 0 Acquisition-related costs 0 0 0 0 16 (16)
 $316 Total $324 $306 $18 $956 $1,009 $(53)
 ----
 NOTE: (a) See Page 14 for details of OREO costs.
 Noninterest expense, excluding OREO costs and special charges, was $296 million in the third quarter, compared with $289 million in the prior quarter and $277 million for the same quarter of 1991. The increase from the prior quarter was primarily caused by higher employee costs, related to incentive compensation connected with improved operating performance and domestic salary increases, and higher expenses from Latin American operations, including government-mandated wage increases. The total number of employees grew by 400 during the third quarter of 1992, mainly reflecting an expansion of the corporation's Latin American operations, increased loan generation efforts, and greater volume of business in our securities processing area. The increase in employee costs in the nine-month comparison was moderated by a decline in professional fees reflecting, in part, lower legal fees.
 OREO costs in the third quarter included $25 million of valuation write-downs. This compares with valuation write-downs of $25 million in the prior quarter and $24 million for the same quarter a year ago. The restructuring expenses in the first nine months of 1991 stemmed from the corporation's decision to consolidate and downsize various domestic and international operations. In addition, the acquisition-related expenses in the first nine months of 1991 were incurred in connection with the corporation's unsuccessful bid to acquire the failed Bank of New England franchise. Income Taxes
 The second and third quarter 1992 income tax provisions each amounted to $39 million and were partially offset by the recognition of $18 million and $19 million, respectively, of prior years' federal income tax benefit carryforwards as extraordinary items. Credit Profile Loan and Lease Portfolio
 The segments of the lending portfolio are as follows:
 (in millions)
 9/30/92 6/30/92 3/31/92 12/31/91 9/30/91
 Loans and Leases:
 Domestic commercial
 real estate-(a) $3,117 $3,196 $3,241 $3,210 $3,430
 Highly leveraged
 transactions (HLT) 1,719 2,064 2,217 2,620 2,755
 Lesser developed
 countries (LDC)-(b) 8 21 53 69 79
 Subtotal 4,844 5,281 5,511 5,899 6,264
 All other loans and
 leases 17,256 16,510 16,168 15,532 15,784
 Total $22,100 $21,791 $21,679 $21,431 $22,048
 ----
 Note (a) -- Excludes HLTs collateralized by real estate.
 Note (b) Non-trade-related loans subject to country debt
 rescheduling agreements.
 The increase in total loans from the prior quarter reflected growth in overseas portfolios, arising from expansion of indigenous retail and middle market activities in Latin America. Overall, the corporation's total domestic commercial real estate, HLT and LDC loans, which are generally considered as having a higher degree of risk have declined 55 percent from their peak levels in 1989. These loans were down by $437 million, or 8 percent from the prior quarter and by $1.4 billion, or 23 percent from a year ago. Nonaccrual Loans, and OREO
 Nonaccrual loans and OREO amounted to $846 million at Sept. 30, 1992, compared with $1,024 million at June 30, 1992, and $1,712 million at Sept. 30, 1991.
 The details of consolidated nonaccrual loans and OREO are as follows:
 (dollars in millions)
 9/30/92 6/30/92 3/31/92 12/31/91 9/30/91
 Nonaccrual loans:
 Domestic commercial
 real estate-(a) $183 $215 $313 $313 $446
 HLT financings 36 69 84 155 234
 LDC-(b) 5 18 50 66 76
 Other 290 320 331 374 352
 Total 514 622 778 908 1,108
 OREO 332 402 495 601 604
 Total $846 $1,024 $1,273 $1,509 $1,712
 ----
 Note (a) -- Excludes HLTs collateralized by real estate.
 Note (b) -- Non-trade related loans subject to country debt
 rescheduling agreements.
 Nonaccrual assets and OREO as a
 percent of related
 asset categories 3.8 pct. 4.6 pct. 5.7 pct. 6.9 pct. 7.6 pct.
 Total domestic commercial
 real estate nonaccrual
 loans and OREO included
 above $521 $622 $814 $933 $1,069
 This quarter marked the fourth consecutive quarter in which nonperforming assets have been reduced before the effect of charge-offs. The gross inflow into nonaccrual loans totaled $163 million in the third quarter of 1992, up from $123 million in the previous quarter and represented a decline of $119 million, or 42 percent from the same period a year ago. Outflows before the effect of chargeoffs and write- downs for the third quarter of 1992 were $248 million, compared with $277 million in the second quarter of 1992 and $207 million in the third quarter of 1991.
 The corporation sold $69 million of OREO, continuing its aggressive efforts to dispose of foreclosed properties. Since the beginning of 1989, the corporation has sold OREO with an approximate aggregate carrying value of about $560 million at or near book value. OREO properties at the end of the quarter had an aggregate carrying value of approximately 46 percent of the original loan amount. Renegotiated Loans
 As part of its approach to managing credit, the corporation has renegotiated certain of its loans when a determination was made that greater economic value will ultimately be received under the new terms than through foreclosure or liquidation. Renegotiated loans totaled $409 million at Sept. 30, 1992, of which $280 million were real estate- related and the remaining were commercial loans. These loans, which had a yield of approximately 8 percent, are performing in accordance with their new terms, and are not included in nonaccrual loans. During the third quarter of 1992, $98 million of loans were renegotiated and $20 million of renegotiated loans were returned to nonaccrual status. The Sept. 30, 1992, renegotiated loan portfolio had a carrying value of approximately 71 percent of the original loan amount.
 Since early in 1990, when the corporation began actively restructuring certain of its loans under current accounting guidelines, it has renegotiated a total of $605 million of loans. Under these guidelines, any renegotiated loan that sustains an appropriate market rate of interest no longer needs to be reported as a renegotiated loan and it is treated the same as all other fully performing loans. However, under current regulatory guidelines, these loans must be reported as renegotiated until the calendar year-end subsequent to the renegotiation. Of the total loans renegotiated over this period, $120 million have met these criteria and are no longer reported in this category, and the corporation expects to remove additional amounts from renegotiated loan totals in the first quarter of 1993. In addition a total of $35 million of renegotiated loans were returned to nonaccrual status, since early 1990.
 The trends in renegotiated loans are shown below:
 (Dollars in Millions)
 9/30/92 6/30/92 3/31/92 12/31/91 9/30/91
 Renegotiated loans $409 $347 $305 $339 $255
 Approximate yield on
 renegotiated loans 8 pct. 8 pct. 8 pct. 8 pct. 8 pct.


Provision and Reserve for Credit Losses
 The reserve for credit losses at Sept. 30, 1992 was $858 million, or 3.88 percent of outstanding loans and leases, compared with $884 million, or 4.06 percent at June 30, 1992, and $924 million, or 4.19 percent at Sept. 30, 1991. The reserve for credit losses was 167 percent of nonaccrual loans at Sept. 30, 1992, 142 percent of nonaccrual loans at June 30, 1992, and 83 percent at Sept. 30, 1991.
 The provision for credit losses was $20 million for the third quarter of 1992 compared with $25 million in the prior quarter and $75 million for the comparable period last year. For the first nine months of 1992, the provision for credit losses was $90 million, compared with $250 million in the same period last year.
 Net credit losses were $46 million for the third quarter of 1992, compared with 45 million for the prior quarter and $75 million for the comparable period last year. Recoveries were $22 million in third quarter of 1992, compared with $24 million in the previous quarter and $17 million in the third quarter of 1991. Included in these amounts were recoveries pertaining to non-trade related LDC loans of $11 million, $12 million and $3 million, respectively. For the first nine months of 1992, net credit losses were $156 million, compared with $250 million for the same period a year ago. Net credit losses as a percent of average loans and leases on an annualized basis were .83 percent in 1992's third quarter, compared with .84 percent for the second quarter of 1992 and 1.37 percent for the third quarter of 1991.
 Net credit losses/(recoveries) were as follows:
 (in millions)
 Second Quarter Third Quarter Nine Months
 1992 1992 1991 1992 1991
 $32 Domestic real $36 $45 $99 $140
 estate-(a)
 13 HLT financings 1 5 29 16
 (12)LDC (11) (2) (38) 19
 12 Other 20 27 66 75
 $45 Total $46 $75 $156 $250
 ----
 Note: (a) Excludes HLTs collateralized by real estate Capital
 Stockholders' equity and reserves amounted to $3 billion at Sept. 30, 1992. The corporation's estimated risk-based capital ratios based on the 1992 rules, were 7.0 percent for tier 1 and 11.4 percent for total capital and the estimated leverage ratio for Sept. 30, 1992 was 6.5 percent. These exceeded the minimum requirements of current regulations as well as those effective at the end of 1992 and compare with the capital ratio aspect of the regulatory criteria for an institution to be considered well-capitalized of 6 percent for tier 1, 10 percent for total capital and 5 percent for leverage. The higher capital ratios in the third quarter reflected, in part, the $223 million of net proceeds from the sale of 9.2 million depositary shares each representing a one-tenth interest in a share of Series E preferred stock, which was completed on Aug. 13, 1992. Common and Preferred Dividends
 The board of directors today declared a quarterly dividend of $.10 per share of the corporation's common stock. The dividend is payable Nov. 27, 1992, to stockholders of record on Nov. 2, 1992.
 Separately, the board declared quarterly dividends of $.75 per share on the corporation's adjustable rate cumulative preferred stock, Series A (BKB pfA); $.75 per share on its adjustable rate cumulative preferred stock, Series B (BKB pfB); $1.37 per share on its adjustable rate cumulative preferred stock, Series C (BKB pfC); and 72.861 cents on each depositary share representing its 8.60
percent cumulative preferred stock, series E. These dividends are payable on Dec. 15, 1992 to stockholders of record on Nov. 27, 1992. For the period Sept. 16, 1992 through Dec. 15, 1992, the preferred stock dividend rates are 6.00 percent for the Series A stock, 6.00 percent for the series B stock, and 5.50 percent for the Series C stock. Dividends on the depositary shares representing the Series E stock are for the period Aug. 13, 1992 (the date of issuance of such shares) through Dec. 15, 1992. The Corporation
 Bank of Boston Corporation with assets of $33 billion at Sept. 30, 1992, is a New England-based superregional bank holding company with both national and international operations. Its major banking subsidiaries are The First National Bank of Boston, with headquarters in Massachusetts; Casco Northern Bank, N.A., in Maine; Bank of Boston Connecticut; Rhode Island Hospital Trust National Bank, and Bank of Vermont. The corporation and its subsidiaries provide a broad range of financial services to individual, corporate, institutional and governmental customers, as well as to other banks. The corporation's common and preferred stocks are listed on the New York and Boston exchanges.
 Consolidated Statement of Income
 (dollars in millions, except per share amounts)
 Quarter Ended Quarters Ended Nine Months Ended
 June 30 Sept. 30 Sept. 30
 1992 1992 1991 1992 1991
 $1,163.0 Interest income $1,184.4 $960.3 $3,475.3 $2,753.4
 894.7 Interest expense 904.5 733.1 2,680.2 2,102.1
 Net interest
 268.3 revenue 279.9 227.2 795.1 651.3
 Provision for
 25.0 credit losses 20.0 75.0 90.0 250.0
 Net interest
 revenue after
 provision for
 243.3 credit losses 259.9 152.2 705.1 401.3
 Noninterest income:
 Financial service
 83.2 fees 71.8 82.0 237.7 233.4
 Trust and agency
 37.3 fees 37.8 35.0 114.5 109.5
 Trading profits
 5.4 and commissions 5.5 7.8 15.4 20.2
 Securities
 9.2 portfolio gains 8.0 3.4 26.6 13.1
 21.6 Other income 31.4 55.6 96.2 129.2
 Total noninterest
 156.7 income 154.5 183.8 490.4 505.4
 Noninterest expense:
 127.8 Salaries 137.0 118.3 386.7 364.1
 29.2 Employee benefits 27.3 26.8 84.6 80.1
 Occupancy
 27.2 expense 27.4 29.2 81.9 89.3
 22.1 Equipment expense 22.0 22.5 67.3 68.9
 83.0 Other expense 82.6 80.4 246.6 252.9
 289.3 Subtotal 296.3 277.2 867.1 855.3
 26.9 OREO costs 27.8 28.5 89.4 91.4
 Restructuring
 0 expense 0 0 0 46.6
 Acquisition-
 0 related costs 0 0 0 16.0
 Total noninterest
 316.2 expense 324.1 305.7 956.5 1,009.3
 Income (loss) before
 income taxes and
 extraordinary
 83.8 item 90.3 30.3 239.0 (102.6)
 Provision for
 39.2 income taxes 38.7 12.2 103.5 25.3
 Net income (loss)
 before extraord.
 44.6 items 51.6 18.1 135.5 (127.9)
 Extraordinary
 items:
 Use of prior
 years' tax
 benefit
 17.8 carryforwards 18.6 0 53.9 0
 Early
 extinguishment
 of debt, net
 0 of tax 0 0 0 7.8
 $62.4 Net income (loss)$70.2 $18.1 $189.4 ($120.1)
 Per common share:
 Income (loss)
 before extraord.
 items:
 49 cents Primary 54 cents 20 cents $1.52 ($1.84)
 48 cents Fully diluted 53 cents 20 cents $1.47 ($1.84)
 Net income (loss):
 71 cents Primary 76 cents 20 cents $2.18 ($1.74)
 68 cents Fully diluted 73 cents 20 cents $2.10 ($1.74)
 Dividends
 0 declared 0 0 0 10
 Other data:
 Net interest
 revenue, taxable
 $269.7 equivalent $281.3 $231.3 $799.8 $665.1
 Net interest
 3.95 pct margin 3.96pct 3.19pct 3.82pct 3.14pct
 Average number of
 common shares,
 in thousands:
 84,139 Primary 84,427 75,171 81,343 74,783
 89,322 Fully diluted 89,302 75,297 86,261 74,783
 Return on average
 total assets
 .81 pct (annualized) .88pct .22pct .80pct (.51pct)
 Return on average
 common equity
 14.94 pct (annualized) 14.74pct 4.46pct 15.02pct (12.72pct)
 Preferred dividends
 $3.1 declared $5.7 $3.4 $11.9 $10.0
 Consolidated Balance Sheet
 (dollars in millions)
 June 30 Sept. 30
 1992 1992 1991
 Assets
 $21,791 Loans and lease financing $22,100 $22,048
 (884) Reserve for credit losses (858) (924)
 Net loans and lease
 20,907 financing 21,242 21,124
 Securities:
 2,023 Held for investment 1,949 3,880
 707 Held for sale 2,079 ---
 3,874 Other earning assets 2,966 2,347
 Cash and other nonearning
 4,766 assets 4,505 5,006
 $32,277 Total assets $32,741 $32,357
 Liabilities and Stockholders' Equity
 $25,259 Deposits $25,175 $25,047
 3,243 Funds borrowed 3,545 3,738
 1,045 Notes payable 1,053 1,040
 853 Other liabilities 796 1,008
 30,400 Total liabilities 30,569 30,833
 Stockholders' Equity
 208 Preferred equity 438 208
 1,669 Common equity 1,734 1,316
 1,877 Total stockholders' equity 2,172 1,524
 Total liabilities and
 $32,277 stockholders' equity $32,741 $32,357
 Selected Average Balances
 (dollars in millions)
 Quarter Ended Quarters Ended Nine Months Ended
 June 30 Sept. 30 Sept. 30
 1992 1992 1991 1992 1991
 Assets
 Loans and lease
 $21,550 financing $21,988 $21,702 $21,634 $21,431
 2,869 Securities 3,215 4,113 3,257 3,485
 Total earning
 27,468 assets 28,266 28,768 27,935 28,276
 31,077 Total assets 31,830 31,970 31,467 31,665
 Liabilities and
 Stockholders' Equity
 Interest bearing
 21,370 deposits 21,364 21,581 21,289 21,691
 Noninterest
 bearing
 3,599 deposits 3,703 3,432 3,611 3,447
 24,969 Total deposits 25,067 25,013 24,900 25,138
 1,038 Notes payable 1,049 1,035 1,043 1,050
 Interest bearing
 24,829 liabilities 25,168 26,138 25,143 25,718
 Common
 stockholders'
 1,598 equity 1,741 1,309 1,579 1,367
 Total stockholders'
 1,806 equity 2,069 1,517 1,829 1,575
 Capital
 Common Stockholders' Equity
 June 30, Sept. 30,
 1992 1992 1991
 $ 1,669 Common stockholders' equity $1,734 $1,316
 84,285 Common shares outstanding (000s) 84,505 75,193
 Per common share:
 $19.80 Book value $20.52 $17.50
 $24-5/8 Market value $19-7/8 $9-3/8
 Risk-based Capital
 June 30 Sept. 30
 1992 1992 1991
 (Estimated)
 Under 1992 regulatory rules:
 Risked-based capital ratios
 6.0 pct Tier 1 capital ratio (minimum 7.0 pct 4.8 pct
 required 4.00 pct by Dec. '92)
 Total capital ratio (minimum
 10.3 pct required 8.00 pct by Dec. '92) 11.4 pct 9.0 pct
 5.7 pct Leverage ratio 6.5 pct 4.4 pct
 $1,760 Tier 1 capital $2,056 $1,399
 $3,035 Total capital $3,328 $2,619
 $29,575 Total risk-adjusted assets $29,308 $29,040
 Other Data
 June 30 September 30
 1992 1992 1991
 16,100 Number of employees 16,500 16,200
 Credit Information
 Nonaccrual Loans and OREO
 Detail of Activity by Quarter
 (dollars in millions)
 1990 1991
 Q3 Q4 Q1 Q2 Q3 Q4
 Beginning balance $1,957 $1,857 $1,815 $1,796 $1,753 $1,712
 Additions 350 406 379 337 282 198
 Resturucturings (77) (48) (51) (77) (45) (83)
 Sales, payments (149) (194) (208) (175) (162) (175)
 and other decreases
 Charge-offs and (224) (206) (139) (128) (116) (143)
 valuation write-downs
 Ending balance $1,857 $1,815 $1,796 $1,753 $1,712 $1,509
 Real estate additions, $256 $200 $152 $173 $162 $106
 included above
 (dollars in millions)
 1992
 Q1 Q2 Q3
 Beginning balance $1,509 $1,273 $1,024
 Additions 124 123 163
 Resturucturings (60) (50) (98)
 Sales, payments (185) (227) (150)
 and other decreases
 Charge-offs and (115) (95) (93)
 valuation write-downs
 Ending balance $1,273 $1,024 $846
 Real estate additions, $69 $44 $74
 included above
 Breakdown of Balances By Quarter
 1990 1991
 Q3 Q4 Q1 Q2 Q3 Q4
 Nonaccrual loans $1,192 $1,159 $1,190 $1,178 $1,108 $908
 OREO 665 656 606 575 604 601
 Total nonaccrual $1,857 $1,815 $1,796 $1,753 $1,712 $1,509
 loans and OREO
 Total as a percent of 7.8 8.0 8.3 7.9 7.6 6.9
 related asset categories
 1992
 Q1 Q2 Q3
 Nonaccrual loans $778 $622 $514
 OREO 495 402 332
 Total nonaccrual $1,273 $1,024 $846
 loans and OREO
 Total as a percent of 5.7 4.6 3.8
 related asset categories
 OREO Activity
 Detail by Quarter
 1990 1991
 Q3 Q4 Q1 Q2 Q3 Q4
 Valuation write-downs $35.7 $32.8 $24.9 $21.6 $24.5 $30.1
 (Gain)/loss on sale, net .1 1.1 (.4) .8 (3.1) (1.2)
 Operating expense 3.0 8.5 5.2 10.9 7.1 6.8
 Total OREO expense $38.8 $42.4 $29.7 $33.3 $28.5 $35.7
 Net book value of $29 $76 $43 $57 $20 $28
 OREO properties sold
 1992
 Q1 Q2 Q3
 Valuation write-downs $25.8 $25.0 $25.0
 (Gain)/loss on sale, net (.9) (1.0) (2.4)
 Operating expense 9.8 2.9 5.2
 Total OREO expense $34.7 $26.9 $27.8
 Net book value of $37 $43 $69
 OREO properties sold
 Reserve for Credit Losses
 (dollars in millions)
 Quarter Ended Quarters Ended 9 Months Ended
 June 30 Sept. 30 Sept. 30
 1992 1992 1991 1992 1991
 $903.9 Beginning balance $883.7 $924.0 $923.7 $923.5
 Provision for
 25.0 credit losses 20.0 75.0 90.0 250.0
 (69.0) Credit losses (67.8) (92.0) (225.9) (311.9)
 23.8 Recoveries 22.2 16.9 70.3 62.3
 (45.2) Net credit losses (45.6) (75.1) (155.6) (249.6)
 $883.7 Ending balance $858.1 $923.9 $858.1 $923.9
 Reserve as a
 percent of loans
 4.06 pct and leases 3.88 pct 4.19 pct 3.88 pct 4.19 pct
 Reserve as a pct.
 of nonaccrual
 142 pct loans 167 pct 83 pct 167 pct 83 pct
 -0- 10/22/92 R
 /CONTACT: Constance Hubbell, 617-434-6883, or John Kahwaty, 617-434-3650, both of Bank of Boston/
 (BKB) CO: Bank of Boston ST: Massachusetts IN: FIN SU: ERN


KD -- NE009 -- 4393 10/23/92 18:08 EDT
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Date:Oct 23, 1992
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