Printer Friendly

BARNETT EARNINGS INCREASE 66 PERCENT IN SECOND QUARTER

 JACKSONVILLE, Fla., July 12 /PRNewswire/ -- Barnett Banks, Inc. (NYSE: BBI) today reported that second quarter earnings rose 66 percent to a record $104.2 million, or $.99 per fully diluted share. Earnings represented a 1.11 percent return on assets, also a new high for the company, and a 15.51 percent return on shareholders' equity.
 A year ago, the company earned $62.6 million, or $.60 per share. For the first half of 1993, Barnett earned $196.5 million, or $1.87 per fully diluted share, a 51 percent increase from $130.2 million, or $1.26 per share, in the same period of 1992.
 A focused cost-cutting strategy that produced a 9 percent decline in non-interest expense was the primary factor in improved earnings. Another major element was the sharply improved credit quality that resulted in significantly lower charge-offs, provision expense and writedowns on foreclosed properties. The company reduced non-performing assets by $101 million during the quarter to the lowest level in three years.
 "This quarter represented a milestone for Barnett because we earned more than $100 million in a three-month period for the first time," said Charles E. Rice, Barnett's chairman and chief executive officer. "Our return on assets was a record and is in line with our strategic plan to increase profitability."
 Non-interest expense fell primarily because of lower salary and benefit costs as well as reduced writedowns on real estate owned due to steadied commercial real estate markets. Barnett reduced its overhead ratio to 65 percent in the second quarter, from 67 percent in the first quarter and 71 percent for all of 1992.
 Net charge-offs of $35 million represented an annualized .54 percent of total loans and were 37 percent below a year ago. Provision expense dropped 33 percent from last year to $35 million. Barnett's reserve for potential loan losses was $540 million on June 30, representing 2.09 percent of total loans and 134 percent of non-performing loans.
 Non-performing assets totaled $684 million on June 30, a drop of $364 million from a year earlier. Non-performing assets consisted of $404 million in non-performing loans, 36 percent of which were less than 90 days past due, and $280 million in other real estate owned. The company sold $48 million in real estate owned during the quarter, up significantly from $27 million in the first quarter. Non-performing assets represented 2.58 percent of total loans and other real estate owned on June 30.
 Net interest income was $428 million, as the company's net yield on earning assets rose to 5.10 percent from 5.02 percent a year earlier. Non-interest income continued to rise, increasing 4 percent to $153 million.
 Total loans were $25.9 billion on June 30, down 2 percent from a year ago. Commercial and commercial real estate balances dropped while consumer loans grew 6 percent. This was due in part to Barnett's initiatives that continue to improve the risk profile of the company's loan portfolio.
 Deposits declined 2 percent to $32.4 billion, as some customers switched to higher-yielding alternatives such as Barnett's "Emerald" family of mutual funds.
 "Installment lending, which had begun to pick up in the first quarter, accelerated in the second quarter," Rice said. "Lending to small business has also been getting stronger. We have booked more than $80 million in small business loans this year."
 Barnett continued to build its strong capital ratios in the quarter. Total risk-based capital exceeded 12 percent on June 30 and the leverage ratio was 6.73 percent. Both substantially exceed regulatory requirements.
 In June, the company increased its estimate of savings related to the acquisition of First Florida Banks, Inc. to $80 million this year, compared to a previous projection of $66 million. The company said savings in 1994 would reach $100 million, up from a previous projection of $87 million. The company also said that its goal is to earn 1.20-1.30 percent on assets by the mid-1990s.
 With $37 billion in assets and 633 offices in Florida and Georgia, Barnett Banks, Inc. is the leading financial institution in Florida and the 18th largest in the United States. The company's stock (BBI) is listed on the New York Stock Exchange.
 BARNETT BANKS, INC.
 CONSOLIDATED FINANCIAL HIGHLIGHTS
 Dollars In Millions Except Per Share Data
 Second Quarter First Half
 1993 1992 Change 1993 1992 Change
 INCOME/EXPENSE
 Net interest
 income (taxable-
 equivalent) $427.9 $428.1 --- $864.7 $849.5 2 pct.
 Provision for
 loan losses 34.5 51.6 (33) pct. 77.7 127.7 (39)
 Non-interest
 income, excluding
 securities
 transactions 152.5 146.3 4 301.0 287.3 5
 Securities
 transactions (.8) (.4) --- (1.0) 23.0 ---
 Non-interest
 expense 378.5 418.0 (9) 773.3 818.2 (5)
 Net income 104.2 62.6 66 196.5 130.2 51
 PER SHARE DATA
 Net income --
 fully diluted $ .99 $ .60 65 pct. $ 1.87 $1.26 48 pct.
 Net income --
 primary 1.01 .60 68 1.91 1.26 52
 Dividends
 declared .36 .33 9 .69 .66 5
 Common book
 value (A) 26.71 25.23 6 26.71 25.23 6
 KEY RATIOS (IN PERCENTS)
 Return on
 assets 1.11 .66 68 1.04 .69 51
 Return on
 equity 15.51 10.07 54 14.83 10.68 39
 Net yield on
 earning assets 5.10 5.02 2 5.11 5.00 2
 Overhead ratio 65.21 72.77 (10) 66.35 71.98 (8)
 Leverage ratio 6.73 6.10 10 6.73 6.10 10
 Shareholders'
 equity to
 assets (A) 7.55 6.98 8 7.55 6.98 8
 AVERAGE BALANCES
 Loans, net $25,816 $26,397 (2) pct. $25,839 $26,330 (2) pct.
 Earning
 assets 33,576 34,100 (2) 33,876 33,940 ---
 Total assets 37,469 37,990 (1) 37,807 37,924 ---
 Total deposits 32,688 33,327 (2) 32,956 33,316 (1)
 Interest-bearing
 liabilities 28,932 30,360 (5) 29,364 30,438 (4)
 Shareholders'
 equity 2,687 2,486 8 2,651 2,437 9
 PERIOD END
 Assets $37,255 $37,723 (1) pct.
 Loans 25,855 26,360 (2)
 Deposits 32,416 33,062 (2)
 Shareholders' equity 2,703 2,513 8
 ASSET QUALITY
 Net charge-offs:
 Total $34.5 $55.2 (37) pct. $ 85.0 $122.5 (31) pct.
 As percent of
 average loans
 (annualized) .54 .84 (36) .66 .93 (29)
 Loan loss
 allowance:
 Total $540.1 $557.9 (3)
 As percent of
 period-end loans 2.09 2.12 (1)
 As percent of
 non-performing loans 134 90 49
 Non-performing assets:
 Total $683.8 $1,048.0 (35)
 Non-performing loans 404.4 621.9 (35)
 Other real estate owned 279.4 426.1 (34)
 Non-performing asset ratio (pct. 2.58 3.82 (32)
 (A) -- Computed based on equity before deduction of the employee
 stock ownership plan obligation.
 -0- 7/12/92
 /CONTACT: Bob Stickler, (media), 904-791-5437, or home, 904-396-9284; or Helen Rowan, (analysts), 904-791-7627, or home, 904-272-6915, both of Barnett Banks, Inc./
 (BBI)


CO: Barnett Banks, Inc. ST: Florida IN: FIN SU: ERN

JB-CM -- FL004 -- 0299 07/12/93 09:52 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 12, 1993
Words:1188
Previous Article:AT&T DISCOUNTS CALLS TO CANADA
Next Article:SUNAIR ELECTRONICS ANNOUNCES RESULTS
Topics:


Related Articles
BARNETT EARNINGS INCREASED 85 PERCENT IN 1991
BARNETT EARNINGS RISE 58 PERCENT TO $58.5 MILLION IN THIRD QUARTER
BARNETT 'BBB+' SENIOR DEBENTURES AFFIRMED, REMOVED FROM FITCHALERT -- FITCH FINANCIAL WIRE --
BARNETT EARNS $275 MILLION BEFORE RESTRUCTURING CHARGE; NON-PERFORMING ASSETS FALL SHARPLY
BARNETT EARNS A RECORD $92 MILLION IN FIRST QUARTER
BARNETT EARNINGS SET NEW PER-SHARE RECORD
Waxman Industries, Inc. Reports Continued Strong Operating Performance in the Second Quarter
Double-Digit Revenue Growth Drives 23 Percent Increase In Operating Earnings At Nationsbank
DECK THE HALLS WITH JOLLY EARNINGS REPORTS; GROWTH CONTINUES IN LOCAL, NATIONAL COMPANIES.

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