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BARNETT EARNINGS INCREASED 85 PERCENT IN 1991

 BARNETT EARNINGS INCREASED 85 PERCENT IN 1991
 JACKSONVILLE, Fla., Jan. 9 /PRNewswire/ -- Barnett Banks, Inc.


(NYSE: BBI), Florida's leading banking company, today reported that 1991 earnings increased 85 percent to $123.8 million, or $1.71 per share, from $67.0 million, or $1.06 per share, in 1990.
 Increases in net interest and non-interest income were the primary reasons for the improvement.
 Barnett earned $39.3 million, or $.50 per share, in the fourth quarter compared to a $23.0 million net loss in the 1990 fourth quarter, which included a $24 million pre-tax writedown of a marketable equity security. Fourth-quarter per-share earnings were about the same as third-quarter 1991 results.
 "Our 1991 results were a significant improvement from 1990," said Charles E. Rice, chairman and chief executive officer. "But Barnett continues to feel the impact of the economic slowdown in our markets and loan demand continues to be weak."
 Net interest income rose 8 percent in 1991. The principal factor was an improved net yield on earning assets of 4.69 percent, compared to 4.61 percent in 1990. Non-interest income, excluding securities transactions, was up a strong 11 percent for the year, reflecting increased fee income and better results at Barnett's trust and securities affiliates.
 Non-interest expense rose 11 percent during the year. The main reasons were higher credit-related expenses and a $29 million increase in FDIC insurance premiums. Without those factors, non-interest expense was up 8 percent. Non-interest expense in the fourth quarter was up only 5 percent from the same period a year ago.
 The company set aside $352 million for potential loan losses in 1991 compared to a provision of $375 million in 1990. Net charge-offs were $318 million in 1991 compared to $217 million a year earlier.
 Non-performing assets on Dec. 31 were $960 million, consisting of $574 million of non-performing loans and $386 million of foreclosed real estate. Non-performing assets were $941 million on Sept. 30 and $822 million at the end of 1990. While up from a year ago, non-performing assets were below the year's reported peak of $994 million on March 31, 1991.
 Barnett built its reserve for loan losses in 1991 to $448 million, or 1.91 percent of total loans. That level compared to $411 million, or 1.70 percent, a year earlier.
 Reflecting economic conditions, deposit and loan growth slowed in 1991. Average deposits increased 6 percent during the year to $28.4 billion. Average loans were $23.8 billion in 1991, up only 2 percent from a year ago. Residential mortgage lending was strong, as customers took advantage of the lowest mortgage rates in years. Commercial real estate loans declined, reflecting few loan opportunities as high office and shopping center vacancy rates persisted in many of Barnett's primary markets.
 Barnett's shareholders' equity rose to $2.0 billion Dec. 31 from $1.6 billion a year earlier. The company increased its total risk-based capital ratio to more than 10 percent on Dec. 31, compared to a regulatory requirement of 8 percent. Barnett raised more than $500 million through equity and subordinated debt offerings during the year.
 During 1991, Barnett continued its efforts to improve productivity both through technological innovation and refining its structure.
 With $32.7 billion in assets and 593 offices in Florida and Georgia, Barnett is Florida's leading financial institution and the 20th largest in the United States. Its stock (BBI) is listed on the New York Stock Exchange.
 BARNETT BANKS, INC.
 CONSOLIDATED FINANCIAL HIGHLIGHTS
 Fourth Quarter Full Year
 Percent Percent
 1991 1990 Change 1991 1990 Change
 Dollars in Millions
 Except Per Share Data
 PER SHARE DATA
 Net Income $ .50 $ (.37) -- $ 1.71 $ 1.06 61
 Dividends declared .33 .33 -- 1.32 1.29 2
 Common book
 value (A) 27.14 26.71 2 27.14 26.71 2
 KEY RATIOS (in percents)
 Return on assets .49 (.29) -- .39 .22 77
 Return on equity 7.96 (5.72) -- 7.01 4.14 69
 Leverage ratio 5.47 4.22 30 5.47 4.22 30
 Shareholders' equity
 to assets (A) 6.43 5.25 22 6.43 5.25 22
 AVERAGE BALANCES
 Loans, net $23,504 $24,019 (2) $23,832 $23,477 2
 Securities 4,665 4,162 12 4,480 3,760 19
 Earning assets 29,291 28,633 2 29,080 27,540 6
 Total assets 32,395 31,792 2 32,106 30,508 5
 Interest-bearing
 deposits 24,899 24,605 1 24,895 23,370 7
 Demand deposits 3,546 3,491 2 3,465 3,404 2
 Interest-bearing
 liabilities 26,598 26,321 1 26,590 25,106 6
 Shareholders'
 equity 1,977 1,605 23 1,767 1,620 9
 NET INTEREST INCOME
 Net interest income
 (taxable-equivalent)
 $347.2 $325.3 7 $1,363.3 $1,270.7 7
 Net yield on earning
 assets (pct.) 4.75 4.56 4 4.69 4.61 2
 Loan yield 9.81 10.87 (10) 10.21 10.94 (7)
 Securities
 yield 8.06 9.65 (16) 8.71 9.70 (10)
 Yield on earning
 assets 9.35 10.64 (12) 9.85 10.74 (8)
 Rate on
 interest-bearing
 deposits 5.00 6.54 (24) 5.59 6.63 (16)
 Rate on
 interest-bearing
 liabilities 5.07 6.62 (23) 5.65 6.72 (16)
 ASSET QUALITY
 Net charge-offs:
 Total $76.9 $72.5 6 $317.9 $217.3 46
 As pct. of average
 loans (annualized) 1.31 1.21 8 1.33 .93 43
 Loan loss allowance:
 Total $448.0 $411.0 9 $448.0 $411.0 9
 As pct. of
 period-end loans 1.91 1.70 12 1.91 1.70 12
 As pct. of
 non-performing
 loans 78 71 10 78 71 10
 Non-performing assets:
 Total $960.3 $822.1 17 $960.3 $822.1 17
 As pct. of gross
 loans plus other
 real estate 3.90 3.24 20 3.90 3.24 20
 (A) -- Computed based on equity before deduction of the employee
 stock ownership plan obligation.
 -0- 1/9/92
 /CONTACT: Bob Stickler, 904-791-5437 (office) or 904-396-9284 (home) (media); or Helen Rowan, 904-791-7627 (office) or 904-272-6915 (home) (analysts), both of Barnett Banks, Inc./
 (BBI) CO: Barnett Banks, Inc. ST: Florida IN: FIN SU: ERN


SS-AW -- FL005 -- 8124 01/09/92 10:12 EST
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Date:Jan 9, 1992
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