Printer Friendly

BANK OF BOSTON SUMMARY OF SECOND QUARTER '92 RESULTS

 BANK OF BOSTON SUMMARY OF SECOND QUARTER '92 RESULTS
 BOSTON, July 23 /PRNewswire/ -- Bank of Boston (NYSE: BKB) today


reported today the following summary of earnings results and the full earnings report that follows:
 -- Second Quarter Profits: Bank of Boston Corporation (NYSE: BKB) reported a profit of $62 million, or 68 cents per common share, for the second quarter of 1992. This compares to a $49 million net loss, or (70 cents) per common share, for the same quarter a year ago. The corporation had net income of $57 million for the first quarter of 1992.
 -- Full Year of Profitability: Today's earnings announcement marks four quarters of profitability for the bank totaling $231 million, a dramatic turnaround from the 12 months ending June 30, 1991 when the bank lost a total of $580 million. This marks a year-to-year turnaround of $811 million.
 -- Nonperforming Assets Continue to Decline: In the second quarter alone, Bank of Boston dramatically reduced its nonaccrual loans and Other Real Estate Owned by $249 million. This is a 20 percent decrease since March 31, 1992 and a 42 percent decrease from a year ago. For three consecutive quarters, nonperforming assets have declined by more than $200 million. The current level of nonperforming assets, at $1,024 million, is the lowest in nearly five years.
 -- Credit Quality Improves: This is the third consecutive quarter in which nonperforming assets have declined before the effect of chargeoffs. In the first quarter of 1992, outflows, before chargeoffs, exceeded inflows by $121 million. In the quarter ending June 30, outflows exceeded inflows by $154 million ($277 million vs. $123 million). The decrease in incoming nonperformers coupled with the increased level of outflows clearly illustrates that credit quality is dramatically improving.
 -- Reserve Coverage: The reserve for credit losses increased to 142 percent of nonaccrual loans at the end of the second quarter, a 64 percentage-point increase in coverage from June 30, 1991 levels.
 -- Capital Strength Improves: Tier 1 and total capital ratios increased in the second quarter to 6.0 percent and 10.4 percent, respectively. The strengthened capital position incorporates the $147 million of net proceeds from the corporation's common stock offering completed in the second quarter. At June 30, 1992, stockholders' equity and reserves amounted to $2.8 billion, a significant increase over the June 30, 1991 figure of $2.4 billion.
 ----
 BANK OF BOSTON REPORTS SECOND QUARTER NET INCOME OF $62 MILLION; NONPERFORMING ASSETS DECLINE $249 MILLION, OR 20 PERCENT, FROM 3/31/92
 Bank of Boston Corporation reported today net income of $62 million, or 68 cents per common share on a fully diluted basis. This compares with a net loss of $49 million, or 70 cents per share in the second quarter of 1991. Net income for the first half of 1992 was $119 million, compared with a net loss of $138 million for the comparable period in 1991. On a fully diluted basis, net income per share for 1992's first half was $1.36, compared with a loss of $1.94 for the same period in the prior year.
 For The Second Quarter:
 -- nonaccrual loans and other real estate owned (OREO) were $1,024 million, a reduction of $249 million, or 20 percent, since March 31, 1992 and a reduction of $729 million, or 42 percent, from the June 30, 1991 level;
 -- Net credit losses were $45 million, compared with $65 million in the prior quarter and $75 million in the second quarter of 1991. Recoveries were $24 million, equal to the prior quarter's amount and compare with $32 million in the same period a year ago;
 -- The provision for credit losses was $25 million compared with $45 million in the prior quarter and $75 million in the second quarter of 1991;
 -- The reserve for credit losses as a percent of nonaccrual loans rose to 142 percent from 116 percent at March 31, 1991 and 78 percent at June 30, 1991;
 -- Pre-tax income before credit costs (loan loss provision and OREO) and special items was $136 million, compared with $128 million in the prior quarter and $103 million in last year's second quarter;
 -- Net interest margin was 3.95 percent, compared with 3.57 percent in the prior quarter and 3.25 percent in the second quarter of 1991;
 -- Noninterest expense, excluding OREO costs and special items, was $289 million, compared with 281 million in the first quarter of 1992 and $286 million in the previous year's second quarter;
 -- Stockholders' equity and reserves equaled $2.8 billion, and estimated Tier 1 and total capital ratios increased in the quarter to 6.0 percent and 10.3 percent from 5.3 percent and 9.7 percent, respectively, at the end of the prior quarter. The increase in these ratios included the $147 million of net proceeds from the corporation's common stock offering completed on April 2.
 Chairman and Chief Executive Officer Ira Stepanian said, "We are greatly encouraged by our earnings growth this quarter and by the continued strengthening of our operating fundamentals, with improvements in core earnings, margin and capital. These factors were integral to the recent upgrades in our debt ratings. We continue to make exceptional headway in improving credit quality, having reduced nonperforming assets by over $200 million for the third consecutive quarter. The level of nonperforming assets is now at its lowest point in almost five years, while our reserve coverage of nonaccruals has increased significantly to 142 percent. This track record has given us the confidence to further reduce the credit loss provision this quarter."
 President Charles K. Gifford added, "We are excited about our future and have accelerated our business generation efforts in New England and in key national and global markets. The response to our recently announced $3 billion Credit Initiative has been quite strong thus far. We believe the result of these combined efforts coupled with the modest economic growth anticipated will help sustain our momentum." Net interest revenue
 Net interest revenue, on a fully taxable equivalent basis, was $270 million for the second quarter of 1992, compared with $249 million in the prior quarter and $226 million for the same period in 1991. Net interest margin was 3.95 percent for the second quarter of 1992, the highest level since the first quarter of 1989. This compares with 3.57 percent in the first quarter of 1992 and 3.25 percent in the second quarter of 1991. The increase in net interest revenue and margin from the first quarter reflected both the effect of a lower level of nonaccrual loans and OREO as well as a lower funding cost for these assets. In addition, the increase from the first quarter included higher net interest revenue from Latin America operations. For the first half of 1992, net interest revenue was $518 million and net interest margin was 3.76 percent. These were up from $434 million and 3.12 percent, respectively, for the same period last year. This increase over the comparable period last year reflected wider domestic spreads caused by lower funding costs and a decline in the level of nonperforming assets and higher net interest revenue in Brazil. The improvement in Brazilian operations stemmed from currency positions taken based on management's evaluation of existing opportunities to maximize revenue; this was partially offset by translation/hedge losses in noninterest income. Noninterest income
 The details of noninterest income are as follows:
 (in millions)
 First Quarter Second Quarter Six months
 1992 1992 1991 Change 1992 1991 Change
 $122 Fee-based income $121 $116 $5 $243 $226 $17
 Trading profits
 5 & commissions 5 5 0 10 12 (2)
 Securities
 9 portfolio gains 9 4 5 18 10 8
 Other income:
 Mezzanine/venture
 5 capital profits 7 8 (1) 12 10 2
 Gains from:
 3 Sale of mortgage
 servicing rights 4 1 3 7 3 4
 Recognition of
 deferred gain from
 the 1984 sale of the
 16 headquarters building 0 0 0 16 0 16
 Foreign exchange:
 4 Trading profits 4 9 (5) 8 15 (7)
 Net translation/
 (8) hedge results (12) 1 (13) (20) 1 (21)
 23 Other 19 23 (4) 42 45 (3)
 $179 TOTAL $157 $167 $(10) $336 $322 $14
 Noninterest income in 1992 included foreign exchange translation/ hedge losses, which arose from currency positions taken in Brazil, but were more than offset by increased net interest revenue from these same positions. Also, noninterest income in the first quarter and first half of 1992 included the recognition of the remaining unamortized gain from the 1984 sale of the corporation's headquarters building as a result of 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)
 First Quarter Second Quarter Six months
 1992 1992 1991 Change 1992 1991 Change
 $150 Employee costs $157 $147 $10 $307 $299 $8
 Occupancy and
 50 equipment 49 49 0 99 107 (8)
 13 Professional fees 12 17 (5) 25 34 (9)
 68 Other 71 73 (2) 139 138 1
 Noninterest expense,
 excluding OREO costs
 281 and special charges 289 286 3 570 578 (8)
 35 OREO costs-(a) 27 33 (6) 62 63 (1)
 0 Restructuring expenses 0 40 (40) 0 47 (47)
 Acquisition-related
 0 costs 0 0 0 0 16 (16)
 $316 TOTAL $316 $359 $(43) $632 $704 $(72)
 Note: (a)-See Credit Information tables below for details.
 Noninterest expense, excluding OREO costs and special charges, was $289 million in the second quarter, compared with $281 million in the prior quarter and $286 million for the same quarter of 1991. The increase from the prior quarter was primarily caused by higher employee costs, which included the effect of domestic salary and unemployment tax increases, government mandated wage increases in Latin America, use of contract help in support of expanded securities processing business and the operation of branches acquired in Federal Deposit Insurance Corporation (FDIC) assisted transactions. The increase from the second quarter of 1991 reflected higher employee costs partially offset by lower professional fees. OREO costs of $27 million in the second quarter included $25 million of valuation write-downs. This compares with valuation write-downs of $26 million in the prior quarter and $22 million for the same quarter a year ago. The restructuring expenses in the first half of 1991 were related to consolidations and downsizing of various domestic and international operations. In addition, the acquisition-related expenses in the first half 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 quarter 1992 income tax provision amounted to $39 million. This compares with an income tax provision of $26 million in the first quarter of 1992. In each of the first and second quarters, the income tax provisions were partially offset by the recognition of $18 million of prior years' federal income tax benefit carryforwards as extraordinary items. The higher tax provision, net of the extraordinary item, in the second reflected higher foreign and state tax provisions. Credit profile


Loan and Lease Portfolio
 The segments of the leading portfolio are as follows:
 (in millions) 6/30/92 3/31/92 12/31/91 9/30/91 6/30/91
 Loans and leases:
 Domestic commercial
 real estate-(a) $3,196 $3,241 $3,210 $3,430 $3,585
 Highly leveraged
 transactions (HLT) 2,064 2,217 2,620 2,755 2,808
 Lesser developed
 countries (LDC)-(b) 21 53 69 79 87
 Subtotal 5,281 5,511 5,899 6,264 6,480
 All other loans
 and leases 16,510 16,168 15,532 15,784 15,188
 Total $21,791 $21,679 $21,431 $22,048 $21,668
 Notes: (a) Excludes HLTs collateralized by real estate.
 (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, primarily in indigenous lending in Latin America. Overall, the corporation's total of domestic commercial real estate, HLT and LDC loans, which are generally considered as having a higher degree of risk, have declined 51 percent from their peak levels in 1989. These loans were down by $230 million, or 4 percent from the prior quarter and by $1.2 billion, or 19 percent from a year ago. Nonaccrual Loans, and OREO
 Nonaccrual loans and OREO amounted to $1,024 million at June 30, 1992, compared with $1,273 million at March 31, 1992 and $1,753 million at June 30, 1991.
 The details of consolidated nonaccrual loans and OREO are as follows:
 ($ in millions) 6/30/92 3/31/92 12/31/91 9/30/91 6/30/91
 Nonaccrual loans:
 Domestic commercial
 real estate-(a) $215 $313 $313 $446 $536
 HLT financings 69 84 155 234 243
 LDC-(b) 18 50 66 76 82
 Other 320 331 374 352 317
 Total 622 778 908 1,108 1,178
 OREO 402 495 601 604 575
 Total $1,024 $1,273 $1,509 $1,712 $1,753
 Notes: (a) Excludes HLTs collateralized by real estate.
 (b) Non-trade-related loans subject to country debt
 rescheduling agreements.
 Nonaccrual assets and
 OREO as a percent of
 related asset
 categories 4.6 pct 5.7 pct 6.9 pct 7.6 pct 7.9 pct
 Total domestic
 commercial real estate
 non-accrual loans and
 OREO included above $622 $814 $933 $1,069 $1,130
 The overall favorable trend in nonaccrual loans and OREO reflects the steady decline in the amounts of loans added to nonaccrual status coupled with continued success in reducing these problem assets through recovery efforts, including sales, payment receipts and renegotiations. The gross inflow into nonaccrual loans totaled $123 million in the second quarter of 1992, about even with inflows in the prior quarter and represented a decline of $214 million, or 64 percent from the same period a year ago. This decrease marks the third consecutive quarter in which nonperforming assets have been reduced before the effect of charge-offs. Also during the quarter, the corporation reduced its non-trade-related LDC nonaccruals to $18 million.
 In the second quarter of 1992, OREO properties with a carrying value of $43 million were sold for a minimal net gain. OREO properties at the end of the quarter had an aggregate carrying value of approximately 48 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 $347 million at June 30, 1992, of which $230 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 second quarter of 1992, $50 million of loans were renegotiated and $8 million of renegotiated loans were returned to nonaccrual status. The June 30, 1992, renegotiated loan portfolio had a carrying value of approximately 74 percent of the original loan amount.
 Since early 1990, when the corporation began actively restructuring certain of its loans under current accounting guidelines, it has renegotiated a total of $507 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 is treated the same as all other fully performing loans. Of the total loans renegotiated over this period, $120 million have met these criteria and are no longer reported in the category. In addition, a total of $15 million of renegotiated loans wer returned to nonaccrual status.
 The trends in renegotiated loans are shown below:
 ($ in millions) 6/30/92 3/31/92 12/30/91 9/30/91 6/30/91
 Renegotiated loans $347 $305 $339 $255 $213
 Approxiate yield on
 renegotiated loans 8 pct 8 pct 8 pct 8 pct 7 pct


Reserve for Credit Losses
 The reserve for credit losses at June 30, 1992, was $884 million, or 4.06 percent of outstanding loans and leases, compared with $904 million, or 4.17 percent at March 31, 1992, and $924 million, or 4.26 percent at June 30, 1991. The reserve for credit losses was 142 percent of nonaccrual loans at June 30, 1992, 116 percent of nonaccrual loans at March 31, 1992, and 78 percent at June 30, 1991.
 The provision for credit losses was $25 million for the second quarter of 1992 compared with $45 million in the prior quarter and $75 million for the comparable period last year. For the first half of 1992, the provision for credit losses was $70 million, compared with $175 million in the same period last year.
 Net credit losses were $45 million for the second quarter of 1992, compared with $65 million for the prior quarter and $75 million for the comparable period last year. Recoveries were $24 million in the second quarter of 1992, of which $12 million pertained to non-trade- related LDC loans. This compares with recoveries of $24 million in the prior quarter and $32 million in the second quarter of 1991. For the first half of 1992, net credit losses were $110 million, compared with $175 million for the same period a year ago. Net credit losses as a percentage of average loans and leases on an annualized basis were .84 percent in 1992's second quarter, compared with 1.22 percent for the first quarter of 1992 and 1.42 percent for the second quarter of 1991. This loss experience ratio was at its lowest level in over three years.
 Net credit losses/(recoveries) were as follows:
 (in millions)
 First Quarter Second Quarter Six Months
 1992 1992 1991 1992 1991
 $31 Domestic real estate-(a) $32 $44 $63 $95
 15 HLT financings 13 2 28 11
 (15) LDC (12) 12 (27) 21
 34 Other 12 17 46 48
 $65 TOTAL $45 $75 $110 $175
 Note: (a)-Excludes HLTs collateralized by real estate. Capital
 Stockholders' equity and reserves amounted to $2.8 billion at June 30, 1992. The corporation's estimated risk-based capital ratios, based on 1992 rules, were 6.0 percent for Tier 1 and 10.3 percent for total capital and exceeded the minimum requirements of current regulations as well as those effective at the end of 1992. In addition, the estimated leverage ratio for June 30, 1992 was 5.7 percent. The improvement in the capital ratios in the second quarter reflected, in part, the $147 million of net proceeds from the sale of 8.5 million shares of common stock, which was completed on April 2, 1992. Securities Portfolio
 In response to discussions with the Securities and Exchange Commission (SEC) in connection with the corporation's recent filing of a shelf registration statement and consistent with accounting actions taken recently by others in the banking industry, the corporation has adopted a broader definition of securities held for sale. This resulted in an increase in the amount of securities classified as held for sale, principally securities held for asset/liability management purposes, and a corresponding reduction in securities classified as held for investment. In connection with adopting this new definition, the corporation is amending its 1991 Form 10-K and its first quarter 1992 Form 10-Q to reclassify certain of its investment securities to the held for sale category. There was no effect on earnings, capital or total assets for the second quarter of 1992 or for the periods reclassified. After giving effect to this reclassification, securities held for sale amounted to $3 billion at Dec. 31, 1991 and $1 billion at March 31, 1992. This new definition was not applied to periods prior to year-end 1991. Securities held for sale are accounted for at the lower of cost or market value. The corporation believes that this change conforms with the direction the banking industry is being asked to take by the SEC regarding the accounting for securities.
 At June 30, 1992, the investment securities portfolio, with a carrying value of $2,023 million had unrealized appreciation of $57 million and the securities held for sale portfolio, with a carrying value of $707 million had unrealized appreciation of $39 million. FDIC-assisted Transactions
 During the quarter, The First National Bank of Boston began operating Workingmens Co-Operative Bank's five branches, located in the greater Boston area. The bank acquired $190 million of Workingmens deposits as well as the option to acquire certain assets of the bank's branches from the FDIC. As of the end of the quarter, the bank had not purchased any assets of the failed institution. The Corporation
 Bank of Boston Corporation, with assets of $32 billion at June 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 share amounts)
 Quarter Ended Quarters Ended Six Months Ended
 March 31 June 30 June 30
 1992 1992 1991 1992 1991
 $1,127.9 Interest income $1,163.0 $871.1 $2,290.9 $1,793.1
 881.1 Provision for
 45.0 credit losses 25.0 75.0 70.0 175.0
 Net interest revenue
 after provision for
 201.8 credit losses 243.3 146.7 445.1 249.1
 Noninterest income:
 82.8 Financial service fees 83.2 78.4 166.0 151.4
 39.4 Trust and agency fees 37.3 37.6 76.7 74.5
 Trading profits and
 4.5 commissions 5.4 4.9 9.9 12.4
 Securities portfolio
 9.3 gains 9.2 3.8 18.5 9.7
 43.2 Other income 21.6 42.2 64.8 73.6
 Total noninterest
 179.2 income 156.7 166.9 335.9 321.6
 Noninterest expense:
 121.9 Salaries 127.8 121.2 249.7 245.8
 28.1 Employee benefits 29.2 25.7 57.3 53.3
 27.4 Occupancy expense 27.2 28.4 54.6 60.1
 23.1 Equipment expense 22.1 20.5 45.2 46.4
 81.0 Other expense 83.0 90.1 164.0 172.5
 281.5 Subtotal 289.3 285.9 570.8 578.1
 34.7 OREO costs 26.9 33.2 61.6 62.9
 0 Restructuring expense 0 40.0 0 46.6
 Acquisition-related
 0 costs 0 0 0 16.0
 Total noninterest
 316.2 expense 316.2 359.1 632.4 703.6
 Income (Loss) before
 income taxes and
 64.8 extraordinary item 83.8 (45.5) 148.6 (132.9)
 Provision for
 25.5 income taxes 39.2 4.0 64.7 13.1
 Net income (loss)
 before extraordinary
 39.3 items 44.6 (49.5) 83.9 (146.0)
 Extraordinary items:
 Utilization of prior
 years' tax benefit
 17.5 carryforwards 17.8 0 35.3 0
 Early extinguishment
 0 of debt, net of tax 0 0 0 7.8
 $56.8 NET INCOME (LOSS) $62.4 $(49.5) $119.2 $(138.2)
 Per Common Share:
 Income (Loss) before
 extraordinary items:
 48 cents Primary 49 cents (70 cents) 97 cents $(2.05)
 46 cents Fully diluted 48 cents (70 cents) 94 cents $(2.05)
 Net income (loss):
 71 cents Primary 71 cents (70 cents) $1.42 $(1.94)
 68 cents Fully diluted 68 cents (70 cents) $1.36 $(1.94)
 0 Dividends declared 0 0 0 10 cents
 Other Data:
 Net interest revenue,
 $248.8 taxable equivalent $269.7 $226.0 $518.5 $433.8
 3.57 pct Net interest margin 3.95 pct 3.25 pct 3.76 pct 3.12 pct
 Average number of
 common shares,
 in thousands:
 75,429 Primary 84,139 74,939 79,784 74,587
 80,153 Fully diluted 89,322 74,939 84,726 74,587
 Preferred dividends
 $3.1 declared $3.1 $3.3 $6.2 $6.6
 Consolidated Balance Sheet
 (dollars in millions)
 March 31 June 30
 1992 1992 1991
 Assets
 $21,679 Loans and lease financing $21,791 $21,668
 (904) Reserve for credit losses (884) (924)
 20,775 Net loans and lease financing 20,907 20,744
 Securities:
 1,781 Held for investment 2,023 3,798
 1,009 Held for sale 707
 3,106 Other earning assets 3,874 2,666
 4,613 Cash and other nonearning assets 4,766 5,071
 $31,284 Total Assets $32,277 $32,279
 Liabilities and Stockholders' Equity
 $25,266 Deposits $25,259 $25,964
 2,392 Funds borrowed 3,243 2,869
 1,042 Notes payable 1,045 1,035
 914 Other liabilities 853 902
 29,614 Total Liabilities 30,400 30,770
 Stockholders' Equity
 208 Preferred equity 208 208
 1,462 Common equity 1,669 1,301
 1,670 Total Stockholders' Equity 1,877 1,509
 Total Liabilities and
 $31,284 Stockholders' Equity $32,277 $32,279
 Selected Average Balances
 (dollars in millions)
 Quarter Quarters Ended Six Months Ended
 Ended June 30 June 30
 3/31/92 1992 1991 1992 1991
 Assets:
 Loans and
 $21,358 lease financing $21,550 $21,102 $21,455 $21,294
 3,689 Securities 2,869 3,824 3,279 3,165
 28,066 Total earning assets 27,468 27,911 27,767 28,025
 31,518 Total assets 31,077 31,392 31,302 31,510
 Liabilities and
 Stockholders' Equity
 Interest-bearing
 21,036 deposits 21,370 21,530 21,202 21,748
 Noninterest-bearing
 3,529 deposits 3,599 3,426 3,564 3,455
 24,565 Total deposits 24,969 24,956 24,766 25,203
 1,043 Notes payable 1,038 1,040 1,040 1,058
 Interest-bearing
 25,435 liabilities 24,829 25,449 25,131 25,505
 Common stockholders'
 1,429 equity 1,598 1,387 1,518 1,397
 Total stockholders'
 1,637 equity 1,806 1,595 1,726 1,605
 Capital
 Common Stockholders' Equity
 March 31 June 30
 1992 1992 1991
 $1,670 Common stockholders' equity $1,877 $1,509
 75,667 Common shares outstanding, in thousands 84,285 75,124
 Per common share:
 $19.32 Book value $19.80 $17.31
 $18-1/8 Market value $24-5/8 $6-7/8
 Risk Based Capital
 March 31 June 30
 1992 1992 1991
 Under 1992 regulatory rules:
 Risk-based capital ratios Estimate
 5.3 pct Tier 1 capital ratio
 (minimum required 4.00 pct by Dec. '92) 6.0 pct 4.8 pct
 9.7 pct Total capital ratio
 (minimum required 8.00 pct by Dec. '92) 10.3 pct 9.0 pct
 4.9 pct Leverage ratio 5.7 pct 4.4 pct
 $1,551 Tier 1 capital $1,760 $1,372
 $2,820 Total capital $3,036 $2,581
 $29,053 Total risk-adjusted assets $29,603 $28,826
 Other Data
 March 31 June 30
 1992 1992 1991
 16,000 Number of employees 16,100 16,300
 CREDIT INFORMATION
 Nonaccrual Loans and OREO
 Detail of Activity by Quarter
 (dollars in millions) 1990
 Q2 Q3 Q4
 Beginning balance $1,981 $1,957 $1,857
 Additions 528 350 406
 Restructurings (16) (77) (48)
 Sales, payments and
 other decreases (306) (149) (194)
 Charge-offs and
 valuation write-downs (230) (224) (206)
 Ending balance $1,957 $1,857 $1,815
 Real estate additions,
 included above $285 $256 $200
 (dollars in millions) 1991 1992
 Q1 Q2 Q3 Q4 Q1 Q2
 Beginning balance $1,815 $1,796 $1,753 $1,712 $1,509 $1,273
 Additions 379 337 282 198 124 123
 Restructurings (51) (77) (45) (83) (60) (50)
 Sales, payments and
 other decreases (208) (175) (162) (175) (185) (227)
 Charge-offs and
 valuation write-downs (139) (128) (116) (143) (115) (95)
 Ending balance $1,796 $1,753 $1,712 $1,509 $1,273 $1,024
 Real estate additions,
 included above $152 $173 $162 $106 $69 $44
 BREAKDOWN OF BALANCES BY QUARTER
 1990
 Q2 Q3 Q4
 Nonaccrual loans $1,240 $1,192 $1,159
 OREO 717 665 656
 Total nonaccrual loans
 and OREO $1,957 $1,857 $1,815
 Total as a percent of
 related asset categories 8.3pct 7.8pct 8.0pct
 1991 1992
 Q1 Q2 Q3 Q4 Q1 Q2
 Nonaccrual loans $1,190 $1,178 $1,108 $908 $778 $622
 OREO 606 575 604 601 495 402
 Total nonaccrual
 loans and OREO $1,796 $1,753 $1,712 $1,509 $1,273 $1,024
 Total as a percent
 of related asset
 categories 8.3pct 7.9pct 7.6pct 6.9pct 5.7pct 4.6pct
 OREO ACTIVITY
 Detail by Quarter
 1990
 Q2 Q3 Q4
 Valuation write-downs $12.5 $35.7 $32.8
 (Gain)/loss on sale, net (6.8) .1 1.1
 Operating expense 4.3 3.0 8.5
 Total OREO expense $10.0 $38.8 $42.4
 Net book value of OREO
 properties sold $51 $29 $76
 1991 1992
 Q1 Q2 Q3 Q4 Q1 Q2
 Valuation write-downs $24.9 $21.6 $24.5 $30.1 $25.8 $25.0
 (Gain)/loss on sale, net (.4) .8 (3.1) (1.2) (.9) (1.0)
 Operating expense 5.2 10.9 7.1 6.8 9.8 2.9
 Total OREO expense $29.7 $33.3 $28.5 $35.7 $34.7 $26.9
 Net book value of OREO
 properties sold $43 $57 $20 $28 $37 $43
 RESERVE FOR CREDIT LOSSES
 (dollars in
 millions)
 Quarter ended Quarters ended Six months ended
 $923.5
 Provision for
 45.0 credit losses 25.0 75.0 70.0 175.0
 (89.1) Credit losses (69.0) (106.4) (158.1) (219.9)
 24.3 Recoveries 23.8 31.8 48.1 45.4
 (64.8) Net credit losses (45.2) (74.6) (110.0) (174.5)
 $903.9 Ending balance $883.7 $924.0 $883.7 $924.0
 Reserve for credit
 losses to loans
 4.17 pct and leases 4.06 pct 4.26 pct 4.06 pct 4.26 pct
 Reserve as a percent
 116 pct of nonaccrual loans 142 pct 78 pct 142 pct 78 pct
 -0- 7/23/92
 /CONTACT: Constance Hubbell of Bank of Boston, 617-434-6883/
 (BKB) CO: Bank of Boston Corporation ST: Massachusetts IN: FIN SU: ERN


DD-SH -- NE012 -- 2732 07/23/92 16:55 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 23, 1992
Words:5079
Previous Article:TRAVEL PORTS OF AMERICA, INC. 1992 FISCAL RESULTS
Next Article:PYRAMID TECHNOLOGY REPORTS THIRD QUARTER LOSS
Topics:


Related Articles
BOSTON BANCORP REPORTS NET INCOME OF $15.5 MILLION FOR FIRST HALF OF FISCAL 1992
BOSTON FIVE REPORTS SECOND QUARTER RESULTS
BANK OF BOSTON SUMMARY AND THIRD QUARTER '92 RESULTS
BANK OF BOSTON SUMMARY AND THIRD QUARTER '92 RESULTS
BOSTON FIVE REPORTS IMPROVED ASSET QUALITY, HIGHER CORE EARNINGS AND RECORD MORTGAGE PRODUCTION FOR 1992
PARK NATIONAL CORPORATION, NEWARK, OHIO REPORTS FIRST QUARTER, 1993 EARNINGS
PARK NATIONAL CORPORATION, NEWARK, OHIO REPORTS SECOND QUARTER, 1993 EARNINGS
MELLON REPORTS INCREASED SECOND QUARTER 1993 EARNINGS
MELLON REPORTS SHARPLY HIGHER THIRD QUARTER 1993 EARNINGS
/ SECOND AND FINAL ADD -- CHW001 -- First Union Earnings /

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters