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BOATMEN'S BANCSHARES REPORTS 31.3 PERCENT GAIN IN SECOND QUARTER NET INCOME

 BOATMEN'S BANCSHARES REPORTS 31.3 PERCENT GAIN
 IN SECOND QUARTER NET INCOME
 ST. LOUIS, July 15 /PRNewswire/ -- Boatmen's Bancshares, Inc. (NASDAQ: BOAT), today reported that second quarter net income increased 31.3 percent to $52.3 million, or $1.30 per share, from $39.9 million, or $1.02 per share, the year before, reflecting continued strength in net interest income and noninterest income, as well as contributions to earnings per share from recent acquisitions. Prior periods have been restated to reflect the April 1, 1992, acquisition of First Interstate of Iowa Inc., which was accounted for as a "pooling-of-interests."
 "The second quarter performance reaffirms our conviction that the strategic initiatives implemented two years ago have resulted in a basic step-up in our underlying earnings power," observed Andrew B. Craig, III, chairman, president and chief executive officer. "For the second consecutive quarter, return on assets exceeded 1 percent, improving from 0.93 percent in the 1991 second quarter to 1.10 percent. We were also pleased by further improvement in asset quality from the first quarter."
 For the first half, earnings rose 31.1 percent to $100.6 million, or $2.50 per share, from $76.7 million, or $2.02 per share, the year before. Return on assets was 1.07 percent, versus 0.88 percent.
 Net interest income in the second quarter increased 22.6 percent to $179.8 million from $146.6 million a year ago. The net interest margin, continuing to benefit from widening interest rate spreads, reached 4.40 percent, compared with 4.05 percent in the comparable 1991 period and 4.24 percent in this year's first quarter. "Recent interest rate reductions should not have a material effect on our third quarter since we will adjust our liability costs appropriately," Craig noted.
 Noninterest income again reflected broad-based strengths and rose 23.6 percent to $87.4 million from $70.7 million. Trust fees were up 16 percent, while service charges and credit card income rose nearly 33 percent and more than 17 percent, respectively. Trading account profits and commissions increased to $7.5 million from $3.4 million a year ago. Excluding the effect of purchase acquisitions, the improvement in noninterest income still would have been nearly 10 percent.
 Noninterest expense increased 22.8 percent and included higher expenses from purchase acquisitions, higher FDIC premiums and costs associated with foreclosed property. Excluding these factors, noninterest expense would have risen 5.5 percent.
 Net loan charge-offs continued to decline, totaling $13.4 million, compared with $17.3 million a year ago.
 Nonperforming assets further declined to $307.9 million from $339.9 million at March 31, 1992, and represented 2.82 percent of total loans and foreclosed property versus 3.11 percent the prior quarter.
 Reflecting this improvement, the second quarter's provision for loan losses declined to $20.4 million from $22.7 million the year before. At June 30, the loan loss reserve exceeded 120 percent of nonperforming loans, and was equivalent to 2.00 percent of loans, up from 1.82 percent a year ago and 1.94 percent at the end of the 1992 first quarter.
 Boatmen's loans at June 30 were up 10.6 percent, primarily reflecting the effect of purchase acquisitions. "Nonetheless, there is clearly a steady improvement in loan demand throughout our markets," Craig stressed. "We believe the long-awaited recovery has arrived and expect the pick-up in loan demand to continue."
 Boatmen's, the 34th largest U.S. bank holding company, has the leading market share position in Missouri, and operates more than 300 locations in Missouri, Illinois, Tennessee, Oklahoma, Arkansas and Iowa. Boatmen's expects to complete in the fourth quarter the acquisition of Sunwest Financial Services, Inc., the largest financial institution in New Mexico. In addition, Boatmen's Trust Company is among the nation's dozen largest providers of trust services, with assets under management of approximately $31 billion.
 BOATMEN'S BANCSHARES, INC.
 Consolidated Statement of Income
 (In thousands)
 Periods ended Quarter Six months
 June 30 1992 1991 1992 1991
 Interest and dividend income
 Interest and fees on loans $230,445 $239,302 $457,307 $485,205
 Interest on short-term
 investments 410 2,191 1,158 4,681
 Interest on Federal funds
 sold and securities
 purchased under
 resale agreements 10,634 16,024 23,333 30,895
 Interest and dividends
 on investment securities:
 Taxable 80,965 67,970 158,247 137,236
 Tax-exempt 14,252 14,169 28,808 28,311
 Dividends 249 378 469 807
 Total interest and
 dividends on investment
 securities 95,466 82,517 187,524 166,354
 Interest on trading securities 677 2,514 1,840 3,697
 Interest on receivable due from
 Resolution Trust Corporation -- 6,292 -- 28,955
 Total interest and dividend
 income 337,632 348,840 671,162 719,787
 Interest expense
 Interest on deposits 133,660 171,434 272,696 356,509
 Interest on Federal funds
 purchased and other
 short-term borrowings 17,124 24,342 38,037 58,033
 Interest on capital lease
 obligation 982 998 1,964 1,997
 Interest on long-term debt 6,113 5,493 12,355 11,125
 Total interest expense 157,879 202,267 325,052 427,664
 Net interest income 179,753 146,573 346,110 292,123
 Provision for loan losses 20,358 22,652 41,474 43,556
 Net interest income after
 provision for loan losses 159,395 123,921 304,636 248,567
 Noninterest income
 Trust fees 31,344 27,021 62,267 52,513
 Service charges 25,487 19,221 50,543 37,288
 Credit card 5,418 4,616 9,969 8,646
 Trading account profits and
 commissions 7,461 3,381 14,839 7,575
 Investment securities gains 1,895 1,026 7,041 985
 Other 15,824 15,479 28,890 27,692
 Total noninterest income 87,429 70,744 173,549 134,699
 Noninterest expense
 Staff 83,973 69,607 164,364 139,258
 Net occupancy 12,575 9,942 24,261 20,478
 Equipment 13,560 11,076 26,193 22,339
 Credit card 4,565 3,866 8,631 7,208
 Other 56,353 44,763 108,481 87,418
 Total noninterest expense 171,026 139,254 331,930 276,701
 Income before income tax
 expense 75,798 55,411 146,255 106,565
 Income tax expense 23,460 15,558 45,698 29,891
 Net income $52,338 $39,853 $100,557 $ 76,674
 Net income per share $ 1.30 $ 1.02 $ 2.50 $ 2.02
 Dividends declared per share $ 0.54 $ 0.53 $ 1.08 $ 1.06
 Average shares (YTD) 40,233,825 37,883,426
 Returns (As a percent):
 Return on assets 1.10 0.93 1.07 0.88
 Return on equity 14.27 11.90 13.80 11.89
 Return on common equity 14.27 11.89 13.79 11.88
 Preferred dividends declared $22 $23 $44 $47
 Fully taxable equivalent (FTE)
 adjustment 8,115 8,300 16,473 16,800
 BOATMEN'S BANCSHARES, INC.
 Consolidated Balance Sheet
 (In thousands)
 June 30 1992 1991
 Assets
 Cash and due from banks $ 1,431,814 $ 1,169,014
 Short-term investments 68,671 292,480
 Investment securities 5,092,280 4,099,724
 Trading securities 28,202 93,004
 Federal funds sold and
 securities purchased
 under resale agreement 1,632,691 1,332,896
 Loans (net of unearned income
 of $43,618 and $59,298,
 respectively) 10,751,386 9,717,191
 Less reserve for loan losses 215,525 176,837
 Loans, net 10,535,861 9,540,354
 Property and equipment 318,617 276,189
 Other assets 636,035 562,797
 Total assets $19,744,171 $17,366,458
 Liabilities and Stockholders'
 Equity
 Liabilities:
 Demand deposits $ 3,116,213 $ 2,596,507
 Retail savings deposits and
 interest-bearing
 transaction accounts 5,644,647 4,305,841
 Time deposits 6,556,027 6,640,267
 Total deposits 15,316,887 13,542,615
 Federal funds purchased and
 securities sold
 under repurchase agreements 1,950,791 1,283,360
 Short-term borrowings 504,715 736,876
 Capital lease obligation 40,370 41,054
 Long-term debt 258,207 226,314
 Other liabilities 180,885 153,460
 Total liabilities 18,251,855 15,983,679
 Redeemable preferred stock 1,248 1,270
 Stockholders' Equity:
 Common stock ($1 par value;
 50,000,000 shares
 authorized; 40,373,173 and
 39,897,096 shares issued,
 respectively) 40,373 39,897
 Surplus 630,401 614,790
 Retained earnings 820,294 726,822
 Total stockholders' equity $ 1,491,068 $ 1,381,509
 Total liabilities and
 stockholders' equity $19,744,171 $17,366,458
 Book value per share $ 36.93 $ 34.63
 BOATMEN'S BANCSHARES, INC.
 Summary of Reserve Loan Losses
 (In thousands)
 Six months ended June 30 1992 1991
 Balance, beginning of year $189,299 $164,225
 Loans charged off:
 Domestic
 Commercial (15,023) (12,753)
 Real estate
 Commercial real estate (6,507) (3,367)
 Construction (1,733) (7,783)
 1-4 family residential (1,576) (2,058)
 Consumer (12,935) (15,848)
 Foreign -- --
 Total charge-offs (37,774) (41,809)
 Recoveries on loans previously
 charged off:
 Domestic
 Commercial 5,598 3,386
 Real estate
 Commercial real estate 516 332
 Construction 169 762
 1-4 family residential 338 274
 Consumer 5,719 5,952
 Foreign -- 159
 Total recoveries 12,340 10,865
 Net charge-offs (25,434) (30,944)
 Reserve of purchased subsidies 10,186 --
 Provision for loan losses 41,474 43,556
 Balance, end of year $215,525 $176,837
 Reserve at June 30:
 Loan reserve as percent
 of net loans 2.00 1.82
 Loan reserve as percent
 of nonperforming loans 121.14 80.04
 Loan reserve as multiple of
 net charge-offs 4.24 2.86
 Net charge-offs during first six
 months:
 Net charge-offs annualized as
 percent of net loans 0.47 0.64
 Net charge-offs annualized as
 percent of net loans (avg.) 0.48 0.64
 Net charge-offs annualized as
 percent of loan reserve 23.60 35.00
 Nonperforming Assets
 (In thousands)
 June 30 March 31
 1992 1991 1992
 Nonaccrual $150,954 $176,818 $157,044
 Restructured 14,516 29,231 24,015
 Past due 90 days or more 12,446 14,898 17,371
 Total nonperforming loans 177,916 220,947 198,430
 Foreclosed property 129,951 93,230 141,432
 Total nonperforming assets $307,867 $314,177 $339,862
 Nonperforming Asset Ratios
 Nonperforming loans
 as percent of total
 loans 1.65 2.26 1.84
 Nonperforming assets as percent
 of total loans and
 foreclosed property 2.82 3.18 3.11
 Nonperforming assets as
 percent of total assets 1.56 1.81 1.71
 Loan reserve as percent of
 nonperforming loans 121.14 80.04 105.03
 BOATMEN'S BANCSHARES, INC.
 Consolidated Average Balance Sheet and Net Interest Margin
 (In millions)
 Quarter ended June 30 1992 1991
 Average balances
 Balance Rate Balance Rate
 Assets:
 Loans, net of unearned
 income $ 10,742.1 8.63 $9,603.1 10.03
 Short-term investments 39.9 4.11 128.6 6.84
 Federal funds sold &
 securities purchased
 under resale agreements 1,102.9 3.86 1,078.5 5.93
 Investment securities:
 Taxable 4,280.1 7.57 3,176.3 8.56
 Tax-exempt 834.9 10.06 833.1 9.99
 Equity securities 18.2 7.57 24.5 8.16
 Total investment
 securities 5,133.2 7.97 4,033.9 8.85
 Trading securities 43.3 6.61 135.5 7.38
 Receivable due from Resolution
 Trust Corporation -- 319.6 7.88
 Total earning assets 17,061.4 8.11 15,299.2 9.34
 Less reserve for
 loan losses (214.5) (174.6)
 Cash and due from banks 1,260.5 1,147.0
 All other assets 962.6 809.1
 Total assets $19,070.0 $17,080.7
 Liabilities:
 Retail savings deposits and
 interest-bearing
 transaction accounts $5,707.6 3.35 $4,283.8 4.97
 Time deposits 6,569.1 5.22 6,853.2 6.90
 Total interest-bearing
 deposits 12,276.7 4.35 11,137.0 6.16
 Federal funds purchased and
 other short-term
 borrowings 1,804.9 3.80 1,672.1 5.81
 Capital lease obligation 40.4 9.72 41.1 9.72
 Long-term debt 260.7 9.38 229.3 9.59
 Total interest-bearing
 liabilities 14,382.7 4.39 13,079.5 6.18
 Demand deposits 3,044.6 2,500.3
 All other liabilities 174.5 159.9
 Total liabilities 17,601.8 15,739.7
 Redeemable preferred stock 1.3 1.3
 Total stockholders' equity 1,466.9 1,339.7
 Total liabilities and
 stockholders' equity $ 19,070.0 17,080.7
 Interest rate spread 3.72 3.16
 Effect of noninterest-bearing funds 0.68 0.89
 Net interest margin 4.40 4.05
 Six Months ended June 30 1992 1991
 Average balances (in thousands)
 Balance Rate Balance Rate
 Assets:
 Loans, net of unearned
 income $ 10,536.4 8.73 $9,655.9 10.12
 Short-term investments 53.0 4.37 132.3 7.11
 Federal funds sold &
 securities purchased
 under resale agreements 1,177.3 3.96 998.0 6.19
 Investment securities:
 Taxable 4,088.2 7.74 3,184.7 8.62
 Tax-exempt 845.4 10.06 833.0 9.94
 Equity securities 17.8 7.14 24.6 8.94
 Total investment
 securities 4,951.4 8.13 4,042.3 8.89
 Trading securities 60.0 6.40 100.1 7.59
 Receivable due from Resolution
 Trust Corporation 721.7 8.02
 Total earning assets 16,778.1 8.20 15,650.3 9.41
 Less reserve for
 loan losses (205.8) (171.1)
 Cash and due from banks 1,287.4 1,144.4
 All other assets 937.5 810.1
 Total assets $18,797.2 $17,433.7
 Liabilities:
 Retail savings deposits and
 interest-bearing
 transaction accounts $5,539.5 3.55 $4,221.7 5.03
 Time deposits 6,390.7 5.46 7,052.6 7.10
 Total interest-bearing
 deposits 11,930.2 4.57 11,247.3 6.32
 Federal funds purchased
 and other short-term
 borrowings 1,946.8 3.91 1,931.5 6.01
 Capital lease obligation 40.5 9.72 41.2 9.72
 Long-term debt 262.7 9.40 232.0 9.57
 Total interest-bearing
 liabilities 14,180.2 4.58 13,479.0 6.34
 Demand deposits 2,989.3 2,490.6
 All other liabilities 168.9 173.3
 Total liabilities 17,338.4 16,142.9
 Redeemable preferred stock 1.3 1.3
 Total stockholders' equity 1,457.5 1,289.5
 Total liabilities and
 stockholders' equity $18,797.2 $17,433.7
 Interest rate spread 3.62 3.07
 Effect of noninterest-bearing funds 0.70 0.88
 Net interest margin 4.32 3.95
 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- 7/15/92
 /CONTACT: Philip N. McCarty of Boatmen's Bancshares, 314-466-7720/
 (BOAT) CO: Boatmen's Bancshares Inc. ST: Missouri IN: FIN SU: ERN


TS -- NY007 -- 9421 07/15/92 09:43 EDT
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