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BOATMEN'S BANCSHARES REPORTS 10.9 PERCENT GAIN IN FOURTH QUARTER NET INCOME

          BOATMEN'S BANCSHARES REPORTS 10.9 PERCENT GAIN
                   IN FOURTH QUARTER NET INCOME
    ST. LOUIS, Jan. 22 /PRNewswire/ -- Boatmen's Bancshares, Inc. (NASDAQ-NMS: BOAT) reported that fourth quarter net income increased 10.9 percent to $38.8 million, or $1.02 per share, from $35 million, or $1.01 per share, a year ago, reflecting a continuation of the favorable trends evident in the third quarter of 1991.
    For the full year, net income totaled $150.1 million, or $4.07 per share, up 11 percent over the $135.2 million, or $3.90 per share, earned in 1990.
    The percentage improvement in earnings per share both for the quarter and the full year was less than net income because of more average shares outstanding, the result of a successful $111 million common stock offering in April 1991.
    "Our performance was satisfactory in light of the stubbornly sluggish economy," observed Andrew B. Craig, III, chairman, president and chief executive officer.  "Moreover, we were particularly encouraged by the continued improvement in the net interest margin, substantial growth in noninterest income and apparent stabilization of asset quality."
    The executive continued, "In addition, our strategic acquisition program made significant strides, as we strengthened our leadership position in the central United States by entering Oklahoma and Iowa."
    While Boatmen's does not expect a rebound in the economy until the second half of 1992, Craig pointed out, "We believe we are well positioned to continue our positive earnings momentum, although the strength of the economy will determine the degree of improvement for the year."
    Fourth quarter net interest income rose 16.1 percent to $148.3 million from $127.8 million the year before, with the net interest margin improving by 15 basis points to 4.21 percent from 4.06 percent the year before.  "Throughout the year our asset/liability management strategy was structured to take advantage of declining short-term interest rates, which resulted in a steady improvement in the margin," Craig explained.  "We now believe that the falling interest rate scenario will soon have run its course, and we are adjusting our strategy accordingly."  Net interest income also benefited from additional volume resulting from the acquisition of Boatmen's First National Bank of Oklahoma in August 1991.
    Noninterest income climbed 33.7 percent to $77.2 million from $57.7 million during the prior year's fourth quarter; the gains were widespread and included improvements in trust fees, service charge income, trading account profits and securities gains.  For the full year, trust fees reached a milestone, exceeding $100 million for the first time.
    "As expected, loan demand remained soft during the fourth quarter," Craig pointed out.  Loans outstanding at Dec. 31, 1991 were $9.69 billion, versus $9.18 billion a year earlier, with the Oklahoma acquisition solely responsible for the increase.
    The corporation's provision for loan losses for the quarter was $23.9 million, compared with $21.3 million the year before and $22.2 million in the 1991 third quarter.
    Nonperforming loans were $185 million, versus $188.6 million in the 1990 fourth quarter and $210.9 million in the 1991 third quarter. Nonperforming assets totaled $322.1 million, or 3.26 percent of total loans and foreclosed property, down $27.8 million from $349.9 million in the third quarter.
    At Dec. 31, 1991, the reserve for loan losses stood at 1.80 percent of loans outstanding, compared with 1.64 percent a year ago.  The loan reserve as a percentage of nonperforming loans increased to 94.4 percent, compared with 79.7 percent a year ago and 82.6 percent at the end of the third quarter.  Net charge-offs were 0.79 percent of average loans for 1991, compared with 0.64 percent in 1990.
    Noninterest expense, continuing to be adversely affected by the dramatic increase in F.D.I.C. insurance premiums, rose 24.8 percent in the fourth quarter.  Year-to-year noninterest expenses are to a significant degree noncomparable due to the higher F.D.I.C. insurance premiums, costs associated with foreclosed property and ongoing operating expenses stemming from purchase acquisitions.  Excluding these noncomparable items, noninterest expense increased 8.8 percent for the quarter and 6 percent for the year.
    Boatmen's, with assets of $17.6 billion at year-end 1991, is among the 40 largest U.S. bank holding companies and is the largest banking organization in Missouri.  Boatmen's operates more than 220 locations in Missouri, Illinois, Tennessee and Oklahoma.  In addition, the corporation announced last October plans to expand into Iowa with an agreement to acquire First Interstate of Iowa.  Boatmen's also ranks among the nation's dozen largest providers of trust services, with $31 billion in assets under management.
                      BOATMEN'S BANCSHARES, INC.
                  Consolidated Statement of Income
                           (In thousands)
     Quarter ended Dec. 31;                       1991        1990
    Interest and dividend income
       Interest and fees on loans               $223,265   $244,893
       Interest on short-term investments            749      1,194
       Interest on Federal funds sold and
         securities purchased under resale
         agreements                                9,691      8,552
       Interest and dividends on investment
         securities:
         Taxable                                  71,959     56,974
         Tax-exempt                               14,584     14,611
         Dividends                                   350        458
         Total interest and dividends on
           investment securities                  86,893     72,043
       Interest on trading securities              2,098      1,109
       Interest on receivable due from
        Resolution Trust Corporation                 --       5,359
         Total interest and dividend income      322,696    333,150
    Interest expense
       Interest on deposits                      144,433    161,796
       Interest on Federal funds purchased and
         other short-term borrowings              23,811     37,526
       Interest on capital lease obligation          998      1,001
       Interest on long-term debt                  5,123      5,031
         Total interest expense                  174,365    205,354
         Net interest income                     148,331    127,796
    Provision for loan losses                     23,888     21,323
         Net interest income after provision
           for loan losses                       124,443    106,473
    Noninterest income
       Trust fees                                 28,815     23,452
       Service charges                            21,102     15,371
       Credit card                                 4,989      4,804
       Trading account profits and commissions     6,646      3,033
       Investment securities gains                 3,675        443
       Other                                      11,949     10,604
         Total noninterest income                 77,176     57,707
    Noninterest expense
       Staff                                      70,693     59,333
       Net occupancy                              10,716      9,398
       Equipment                                  11,682     10,393
       FDIC insurance                              7,316      3,193
       Credit card                                 4,405      3,875
       Other                                      43,987     33,051
         Total noninterest expense               148,799    119,243
         Income before income tax expense         52,820     44,937
    Income tax expense                            14,021      9,951
    Net income                                  $ 38,799   $ 34,986
    Net income per share                       $    1.02  $    1.01
    Dividends declared per share               $    0.54  $    0.53
    Returns:
      Return on assets (percent)                     .92        .93
      Return on equity                             11.65      12.29
      Return on common equity                      11.64      12.28
    Preferred dividends declared                     $22        $23
    Fully taxable equivalent (FTE)
      adjustment                                  $8,429     $8,561
     Year ended Dec. 31;                         1991        1990
    Interest and dividend income
       Interest and fees on loans               $905,615   $970,506
       Interest on short-term investments          6,459      4,024
       Interest on Federal funds sold and
         securities purchased under resale
         agreements                               48,708     38,302
       Interest and dividends on investment
         securities:
         Taxable                                 260,657    212,240
         Tax-exempt                               56,869     58,161
         Dividends                                 1,539      1,508
         Total interest and dividends on
           investment securities                 319,065    271,909
       Interest on trading securities              6,951      3,813
       Interest on receivable due from
        Resolution Trust Corporation              28,955      5,359
         Total interest and dividend income    1,315,753  1,293,913
    Interest expense
       Interest on deposits                      629,325    622,402
       Interest on Federal funds purchased and
         other short-term borrowings             100,431    162,138
       Interest on capital lease obligation        3,994      4,042
       Interest on long-term debt                 19,543     20,298
         Total interest expense                  753,293    808,880
         Net interest income                     562,460    485,033
    Provision for loan losses                     88,476     69,215
         Net interest income after provision
           for loan losses                       473,984    415,818
    Noninterest income
       Trust fees                                105,991     93,867
       Service charges                            74,121     56,695
       Credit card                                18,132     18,080
       Trading account profits and commissions    19,632     11,370
       Investment securities gains                 3,730      1,344
       Other                                      50,188     39,788
         Total noninterest income                271,794    221,144
    Noninterest expense
       Staff                                     264,778    235,046
       Net occupancy                              39,588     34,845
       Equipment                                  42,664     40,959
       FDIC insurance                             26,483     12,690
       Credit card                                15,483     14,836
       Other                                     149,519    122,517
         Total noninterest expense               538,515    460,893
         Income before income tax expense        207,263    176,069
    Income tax expense                            57,114     40,828
    Net income                                  $150,149   $135,241
    Net income per share                       $    4.07  $    3.90
    Dividends declared per share               $    2.14  $    2.12
    Average shares (YTD)                      36,886,865 34,679,740
    Returns:
      Return on assets (percent)                     .92        .92
      Return on equity                             11.87      12.11
      Return on common equity                      11.86      12.10
    Preferred dividends declared                     $89        $97
    Fully taxable equivalent (FTE)
      adjustment                                 $33,166    $34,483
    Income tax expense for 1990 reflects a reclassification of state income tax expense from noninterest expense to conform to 1991 presentation.
                    Consolidated Balance Sheet
                        (In thousands)
                                                Dec. 31
    Assets (in thousands)                1991              1990
    Cash and due from banks          $ 1,400,652        $ 1,788,918
    Short-term investments               157,430            296,439
    Investment securities (market
      value: $4,404,304 and
      $3,625,241, respectively)        4,237,203          3,589,293
    Debt securities held for sale         96,177              --
    Trading securities                   124,113             47,627
    Receivable due from Resolution
     Trust Corporation                     --             1,432,742
    Federal funds sold and
      securities purchased
      under resale agreement           1,235,953            547,354
    Loans (net of unearned income
      of $54,142
      and $73,570, respectively)       9,694,930          9,182,332
      Less reserve for loan losses       174,643            150,209
      Loans, net                       9,520,287          9,032,123
    Property and equipment               277,829            245,376
    Other assets                         585,069            488,675
       Total assets                  $17,634,713        $17,468,547
    Liabilities and Stockholders'
      Equity
    Liabilities:
    Demand deposits                  $ 2,874,524        $ 2,765,859
    Retail savings deposits and
      interest-bearing
      transaction accounts             4,763,281          3,906,390
    Time deposits                      5,839,423          6,993,367
      Total deposits                  13,477,228         13,665,616
    Federal funds purchased and
      securities sold
      under repurchase agreements      1,468,831          2,093,471
    Short-term borrowings                903,073            147,822
    Capital lease obligation              40,728             41,380
    Long-term debt                       238,128            204,682
    Other liabilities                    162,167            167,293
       Total liabilities              16,290,155         16,320,264
    Redeemable preferred stock             1,267              1,356
    Stockholders' Equity:
    Common stock ($1 par value;
      50,000,000 shares
      authorized; 37,977,195 and
      34,691,145 shares issued,
      respectively)(A)                    37,977            346,911
    Surplus                              569,140            138,460
    Retained earnings                    736,174            661,556
      Total stockholders' equity     $ 1,343,291        $ 1,146,927
      Total liabilities and
      stockholders' equity           $17,634,713        $17,468,547
    Book value per share             $     35.37        $     33.06
    (A) -- On April 23, 1991, the shareholders approved a change in the par value of the corporation's common stock to $1.00 per share from $10.00 per share.
                     Summary of Reserve Loan Losses
                           (In thousands)
     Year Ended Dec. 31;                1991             1990
    Balance, beginning of year       $150,209           $138,989
    Loans charged off:
       Domestic
         Commercial                   (51,145)           (39,489)
         Real estate
           Mortgage                    (4,416)            (4,167)
           Construction                (2,928)            (5,250)
         Consumer                     (32,803)           (30,674)
       Foreign                           --                  (35)
       Total charge-offs              (91,292)           (79,615)
    Recoveries on loans previously
      charged off:
       Domestic
         Commercial                     7,082              7,580
         Real estate
           Mortgage                       462                561
           Construction                   442                 28
         Consumer                      10,405             11,764
       Foreign                            159              1,687
       Total recoveries                18,550             21,620
       Net charge-offs                (72,742)           (57,995)
    Provision for loan losses          88,476             69,215
    Reserve of purchased subsidiary     8,700               --
    Balance, end of year             $174,643           $150,209
    Reserve at end of year
       Loan reserve as
        percent of net loans             1.80               1.64
       Loan reserve as percent
         of nonperforming loans         94.41              79.65
       Loan reserve as multiple of
         net charge-offs                 2.40               2.59
    Net charge-offs:
       Net charge-offs as
        percent of net loans             0.75               0.63
       Net charge-offs as percent
        of net loans (avg.)              0.79               0.64
       Net charge-offs as
        percent of loan reserve         41.65              38.61
                      Nonperforming Assets
                          (In thousands)
                                        December 31      September 30
                                     1991       1990           1991
    Domestic
       Nonaccrual                  $156,913     $151,417      $171,476
       Restructured                  15,852       23,915        19,122
       Past due 90 days or more      12,218       13,205        20,308
       Total domestic               184,983      188,537       210,906
    Foreign nonaccrual                 --             43          --
       Total nonperforming loans    184,983      188,580       210,906
    Foreclosed property             137,137       72,646       139,009
    Total nonperforming assets     $322,120     $261,226      $349,915
                                        December 31      September 30
    Nonperforming Asset Ratios        1991       1990        1991
       Nonperforming loans
         as percent of total loans    1.90       2.04        2.20
       Nonperforming assets as percent
         of total loans and
         foreclosed property          3.26       2.80        3.60
       Nonperforming assets as percent
         of total assets              1.83       1.50        2.04
       Loan reserve as percent of
         nonperforming loans         94.41      79.65       82.58
    Consolidated Average Balance Sheet and Net Interest Margin
     Quarter ended Dec. 31;             1991                 1990
    Average balances
    (in thousands)                 Balance    Rate    Balance     Rate
    Assets:
       Loans, net of unearned
         income                   $9,577,526   9.38   $9,151,788  10.79
       Short-term investments         54,542   5.49       59,411   8.04
       Federal funds sold &
         securities purchased
         under resale agreements     782,784   4.95      432,678   7.91
       Investment securities:
         Taxable                   3,492,161   8.24    2,596,531   8.78
         Tax-exempt                  850,642  10.06      851,307   9.91
         Equity securities            22,939   8.27       19,406  12.84
         Total investment
           securities              4,365,742   8.60    3,467,244   9.08
       Trading securities            130,832   6.57       48,312   9.36
       Receivable due from Resolution
         Trust Corporation             --                268,507   7.98
         Total earning assets     14,911,426   8.88   13,427,940  10.18
       Less reserve for
         loan losses                (179,476)           (154,588)
       Cash and due from banks     1,232,541           1,146,931
       All other assets              859,500             680,208
           Total assets          $16,823,991         $15,100,491
    Liabilities:
       Retail savings deposits and
         interest-bearing
         transaction accounts     $4,515,478   4.67   $3,354,178   5.46
       Time deposits               5,991,263   6.12    5,861,927   7.91
         Total interest-bearing
           deposits               10,506,741   5.50    9,216,105   7.02
       Federal funds purchased and
         other short-term
         borrowings                1,898,998   5.02    1,969,636   7.62
       Capital lease obligation       40,785   9.72       41,443   9.72
       Long-term debt                211,627   9.68      204,838   9.82
         Total interest-bearing
           liabilities            12,658,151   5.51   11,432,022   7.19
       Demand deposits             2,678,333           2,369,036
       All other liabilities         153,527             159,609
         Total liabilities        15,490,011          13,960,667
       Redeemable preferred
         stock                         1,267               1,376
       Total stockholders' equity  1,332,713           1,138,448
    Total liabilities and
         stockholders' equity    $16,823,991         $15,100,491
    Interest rate spread (percent)             3.37                2.99
    Effect of noninterest-bearing funds        0.84                1.07
    Net interest margin (percent)              4.21                4.06
     Year ended Dec. 31;                1991                 1990
    Average balances
    (in thousands)                 Balance    Rate    Balance     Rate
    Assets:
       Loans, net of unearned
         income                   $9,257,344   9.85   $9,051,321  10.81
       Short-term investments         95,881   6.77       47,342   8.50
       Federal funds sold &
         securities purchased
         under resale agreements     838,565   5.81      462,690   8.28
       Investment securities:
         Taxable                   3,089,531   8.44    2,479,783   8.56
         Tax-exempt                  827,817  10.03      849,888   9.85
         Equity securities            23,915   8.75       20,051  10.23
         Total investment
           securities              3,941,263   8.77    3,349,722   8.90
       Trading securities             98,129   7.21       43,538   9.04
       Receivable due from Resolution
         Trust Corporation           357,902   8.02       67,127   7.98
       Total earning assets       14,589,084   9.25   13,021,740  10.20
       Less reserve for
         loan losses                (166,592)           (148,990)
       Cash and due from banks     1,126,246           1,110,790
       All other assets              784,262             663,369
           Total assets          $16,333,000         $14,646,909
    Liabilities:
       Retail savings deposits and
         interest-bearing
         transaction accounts     $4,152,355   4.91   $3,261,865   5.54
       Time deposits               6,317,943   6.73    5,511,332   8.01
         Total interest-bearing
           deposits               10,470,298   6.01    8,773,197   7.09
       Federal funds purchased
        and other short-term
        borrowings                 1,763,056   5.70    2,050,888   7.91
       Capital lease obligation       41,031   9.72       41,662   9.72
       Long-term debt            1   7.30
       Demand deposits             2,435,992           2,303,294
       All other liabilities         154,043             151,536
         Total liabilities        15,066,332          13,528,511
       Redeemable preferred
         stock                         1,285               1,412
       Total stockholders' equity  1,265,383           1,116,986
    Total liabilities and
      stockholders' equity       $16,333,000         $14,646,909
    Interest rate spread (percent)             3.21               2.90
    Effect of noninterest-bearing funds        0.87               1.09
    Net interest margin (percent)              4.08               3.99
    Rates are computed on a fully taxable equivalent basis using the Federal statutory income tax rate of 34 percent, net of non-deductible interest expense.
    -0-          1/22/92
    /CONTACT:  Philip N. McCarty of Boatmen's Bancshares, 314-466-7720/
    (BOAT) CO:  Boatmen's Bancshares, Inc. ST:  Missouri IN:  FIN SU:  ERN FC -- NY075 -- 2402 01/22/92 14:43 EST
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Date:Jan 22, 1992
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