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BOATMEN'S BANCSHARES REPORTS 36.7 PERCENT GAIN IN THIRD QUARTER NET INCOME

 BOATMEN'S BANCSHARES REPORTS 36.7 PERCENT GAIN
 IN THIRD QUARTER NET INCOME
 ST. LOUIS, Oct. 15 /PRNewswire/ -- Boatmen's Bancshares, Inc. (NASDAQ-NMS: BOAT) reported that third quarter net income climbed 36.7 percent to $53.6 million, or $1.32 per share, from $39.2 million, or $0.98 per share, the year before.
 Return on assets improved to 1.12 percent from 0.91 percent, marking the third consecutive quarter that return on assets exceeded one percent. "We were also encouraged by the continuing improvement in asset quality, as indicated by a number of measurements," commented Andrew B. Craig, III, chairman, president and chief executive officer.
 "The year's positive earnings momentum increased during the third quarter, as we again posted double-digit percentage gains in net interest income and noninterest income," the executive explained.
 For the nine months, net income rose 33 percent to $154.1 million, or $3.82 per share, from $115.9 million, or $3.00 per share. Return on assets was 1.09 percent, versus 0.89 percent the year before.
 Prior periods have been restated to reflect the "pooling-of- interests" acquisition of First Interstate of Iowa, Inc. on April 1, 1992.
 Net interest income in the third quarter totaled $182.2 million, a 19.4 percent increase over a year ago. The net interest margin, continuing to reflect widening interest rate spreads, showed marked improvement, to 4.44 percent from 4.17 percent, and was modestly ahead of the second quarter's margin of 4.40 percent.
 Noninterest income was up 15.7 percent, again registering strong across-the-board gains: trust fees rose 16.6 percent; service charges, 26.7 percent, and investment banking profits and fees, 36.5 percent. Excluding the effect of purchase acquisitions, noninterest income increased 7.4 percent.
 Noninterest expense was relatively flat with the second quarter and rose 14.9 percent over last year's third quarter. Excluding higher expenses from purchase acquisitions, higher FDIC premiums, and costs associated with foreclosed property, noninterest expense increased 6.7 percent.
 Turning to asset quality, the executive reported that continuing the year's positive trend, net loan charge-offs in the third quarter decreased to $11.4 million from $21.3 million the year before. "For the nine months, charge-offs of $36.8 million were 0.46 percent of annualized average net loans, well within our targeted range," Craig pointed out. The comparable 1991 figures were $52.2 million and 0.71 percent.
 Nonperforming assets at September 30 were $298.1 million, down sharply from $369.1 million a year ago, and $9.8 million less than at June 30, 1992. Nonperforming assets represented 2.71 percent of total loans and foreclosed property, versus 3.57 percent the year before, and 2.82 percent at the end of the second quarter.
 In light of this continued improvement in asset quality, the provision for loan losses was reduced to $21.2 million from $26.4 million in the 1991 third quarter. "Even so, we remain committed to maintaining strong coverage ratios," Craig emphasized. At Sept. 30, the loan loss reserve approximated 128 percent of nonperforming loans, compared with 85.1 percent a year ago and 121.1 percent at the end of this year's second quarter.
 On October 1, Boatmen's completed the previously announced acquisition of Sunwest Financial Services, Inc., the largest financial institution in New Mexico. The third quarter results discussed above do not include Sunwest's operations. Subsequent financial statements will include Sunwest's results and prior periods will be restated on a "pooling of interests" basis.
 The Sunwest acquisition increased Boatmen's assets to over $23 billion and moved the company into the ranks of the 30 largest U.S. bank holding companies. Boatmen's currently operates approximately 400 locations in Missouri, Illinois, Tennessee, Oklahoma, Arkansas, Iowa, New Mexico and Texas. Boatmen's is also one of the nation's 15 largest providers of trust services with assets under management of about $32 billion.
 BOATMEN'S BANCSHARES, INC.
 Consolidated Statement of Income
 (In thousands)
 Periods ended Quarter Nine Months
 Sept. 30 1992 1991 1992 1991
 Interest and dividend income
 Interest and fees on
 loans $221,455 $242,903 $678,762 $728,108
 Interest on short-term
 investments 403 1,343 1,561 6,024
 Interest on Federal funds
 sold and securities
 purchased under
 resale agreements 9,879 14,918 33,212 45,813
 Interest and dividends
 on investment securities:
 Taxable 79,658 72,235 237,905 209,471
 Tax-exempt 13,828 14,553 42,636 42,864
 Dividends 226 401 695 1,208
 Total interest and
 dividends on investment
 securities 93,712 87,189 281,236 253,543
 Interest on trading securities 750 1,931 2,590 5,628
 Interest on receivable due from
 Resolution Trust Company 0 0 0 28,955
 Total interest and dividend
 income 326,199 348,284 997,361 1,068,071
 Interest expense
 Interest on deposits 121,808 165,350 394,504 521,859
 Interest on Federal funds
 purchased and other
 short-term borrowings 15,096 23,869 53,133 81,902
 Interest on capital lease
 obligation 983 999 2,947 2,996
 Interest on long-term debt 6,110 5,444 18,465 16,569
 Total interest expense 143,997 195,662 469,049 623,326
 Net interest income 182,202 152,622 528,312 444,745
 Provision for loan losses 21,186 26,362 62,660 69,918
 Net interest income after
 provision for loan
 losses 161,016 126,260 465,652 374,827
 Noninterest income
 Trust fees 32,097 27,518 94,364 80,031
 Service charges 27,659 21,824 78,202 59,112
 Credit card 5,571 4,717 15,540 13,363
 Investment banking profits
 and fees 8,120 5,948 22,959 13,523
 Investment securities gains
 (losses) 393 (609) 7,434 376
 Other 15,290 17,619 44,180 45,311
 Total noninterest income 89,130 77,017 262,679 211,716
 Noninterest expense
 Staff 84,885 73,740 249,249 212,998
 Net occupancy 14,037 11,019 38,298 31,497
 Equipment 14,137 12,343 40,330 34,682
 FDIC Insurance 8,420 7,769 25,021 20,693
 Credit card 4,674 3,870 13,305 11,078
 Other 44,856 40,156 136,736 114,650
 Total noninterest expense 171,009 148,897 502,939 425,598
 Inc. bef. income tax expense 79,137 54,380 225,392 160,945
 Income tax expense 25,546 15,172 71,244 45,063
 Net income $53,591 $39,208 $154,148 $115,882
 Net income per share $ 1.32 $ 0.98 $ 3.82 $ 3.00
 Dividends declared per share $ 0.56 $ 0.54 $ 1.64 $ 1.60
 Average shares (YTD) 40,306,359 38,578,394
 Returns (as a percent):
 Return on assets 1.12 0.91 1.09 0.89
 Return on equity 14.18 11.26 13.93 11.67
 Return on common equity 14.18 11.25 13.92 11.66
 Preferred dividends declared $22 $22 $66 $67
 Fully taxable equivalent (FTE)
 adjustment 7,874 8,400 24,347 25,200
 BOATMEN'S BANCSHARES, INC.
 Consolidated Balance Sheet
 (In thousands)
 Sept. 30: 1992 1991
 Assets
 Cash and due from banks $ 1,231,098 $ 1,519,143
 Short-term investments 56,541 70,701
 Investment securities 5,289,337 4,674,976
 Trading securities 35,129 149,048
 Federal funds sold and
 securities purchased
 under resale agreement 1,860,176 1,120,928
 Loans (net of unearned income
 of $39,322 and $61,406,
 respectively) 10,822,763 ?10,131,291
 Less reserve for loan losses 227,399 190,624
 Loans, net 10,595,364 9,940,667
 Property and equipment 321,154 294,512
 Other assets 608,508 632,425
 Total assets $19,997,307 $18,402,400
 Liabilities and Stockholders'
 Equity
 Liabilities:
 Demand deposits $ 3,118,056 $ 2,920,909
 Retail savings deposits and
 interest-bearing
 transaction accounts 5,743,184 4,660,659
 Time deposits 6,380,715 6,580,167
 Total deposits 15,241,955 14,161,735
 Federal funds purchased and
 securities sold
 under repurchase agreements 1,987,296 1,679,368
 Short-term borrowings 759,906 706,974
 Capital lease obligation 40,191 40,891
 Long-term debt 256,279 222,954
 Other liabilities 183,538 185,280
 Total liabilities 18,469,165 16,997,202
 Redeemable preferred stock 1,248 1,267
 Stockholders' Equity:
 Common stock ($1 par value;
 75,000,000 shares
 authorized; 40,503,938 and
 39,965,365 shares issued,
 respectively) 40,504 39,965
 Surplus 635,203 617,296
 Retained earnings 851,187 746,670
 Total stockholders' equity $ 1,526,894 $ 1,403,931
 Total liabilities and
 stockholders' equity $19,997,307 $18,402,400
 Book value per share $ 37.70 $ 35.13
 BOATMEN'S BANCSHARES, INC.
 Summary of Reserve Loan Losses
 (In thousands)
 Nine months ended Sept. 30: 1992 1991
 Balance, beginning of year $189,299 $164,225
 Loans charged off:
 Domestic
 Commercial (22,574) (18,375)
 Real estate
 Commercial real estate (7,953) (11,022)
 Construction (3,513) (9,972)
 1-4 family residential (2,097) (3,199)
 Consumer (19,383) (24,700)
 Foreign -- --
 Total charge-offs (55,520) (67,268)
 Recoveries on loans previously
 charged off:
 Domestic
 Commercial 8,341 4,734
 Real estate
 Commercial real estate 1,377 408
 Construction 262 942
 1-4 Family Residential 469 421
 Consumer 8,284 8,385
 Foreign 0 159
 Total recoveries 18,733 15,049
 Net charge-offs (36,787) (52,219)
 Provision for loan losses 62,660 69,918
 Reserve of purchased subsidiaries 12,227 8,700
 Balance, end of period $227,399 $190,624
 Reserve at September 30:
 Loan reserve as percent
 of net loans 2.10 1.88
 Loan reserve as percent
 of nonperforming loans 127.75 85.14
 Loan reserve as multiple of
 annualized net charge offs 4.64 2.74
 Net charge-offs during first nine
 months:
 Net charge-offs annualized as
 percent of net loans 0.45 0.69
 Net charge-offs as percent
 of net loans (avg.) 0.46 0.71
 Net charge-offs as percent
 of loan reserve 21.57 36.52
 BOATMEN'S BANCSHARES, INC.
 Nonperforming Assets
 (In thousands)
 Sept. 30 June 30
 1992 1991 1992
 Nonaccrual $149,553 $181,676 $150,954
 Restructured 15,574 21,222 14,516
 Past due 90 days or more 12,883 21,008 12,446
 Total nonperforming loans 178,010 223,906 177,916
 Foreclosed property 120,051 145,209 129,951
 Total nonperforming assets $298,061 $369,115 $307,867
 Nonperforming Asset Ratios
 Nonperforming loans
 as percent of total
 loans 1.64 2.20 1.65
 Nonperforming assets as
 percent of total loans and
 foreclosed property 2.71 3.57 2.82
 Nonperforming assets as
 percent of total assets 1.49 2.01 1.56
 Loan reserve as percent of
 nonperforming loans 127.75 85.14 121.14
 BOATMEN'S BANCSHARES, INC.
 Consolidated Average Balance Sheet and Net Interest Margin
 (In millions)
 Quarter ended September 30
 1992 1991
 Average balances Balance Rate Balance Rate
 Assets:
 Loans, net of unearned
 income $ 10,700.5 8.32 $9,899.5 9.88
 Short-term investments 43.8 3.68 89.0 5.84
 Federal funds sold &
 securities purchased
 under resale agreements 1,185.7 3.33 1,025.7 5.81
 Investment securities:
 Taxable 4,307.0 7.40 3,442.8 8.39
 Tax-exempt 807.9 10.13 853.0 9.99
 Equity securities 21.8 5.66 24.1 8.30
 Total investment
 securities 5,136.7 7.82 4,319.9 8.70
 Trading securities 49.5 6.35 104.8 7.25
 Receivable due from Resolution
 Trust Corporation -- -- --
 Total earning assets 17,116.2 7.81 15,438.9 9.24
 Less reserve for
 loan losses (221.1) (185.8)
 Cash and due from banks 1,248.0 1,215.6
 All other assets 937.5 839.1
 Total assets $19,080.6 $17,307.8
 Liabilities:
 Retail savings deposits and
 interest-bearing
 transaction accounts $5,709.3 2.99 $4,559.5 4.91
 Time deposits 6,477.4 4.89 6,621.4 6.61
 Total interest-bearing
 deposits 12,186.7 4.00 11,180.9 5.92
 Federal funds purchased and
 other short-term
 borrowings 1,811.9 3.33 1,652.7 5.78
 Capital lease obligation 40.3 9.72 41.0 9.72
 Long-term debt 257.4 9.50 223.1 9.68
 Total interest-bearing
 liabilities 14,296.3 4.03 13,097.7 5.98
 Demand deposits 3,105.6 2,640.8
 All other liabilities 166.1 174.9
 Total liabilities 17,568.0 15,913.4
 Redeemable preferred
 stock 1.3 1.3
 Total stockholders' equity 1,511.3 1,393.1
 Total liabilities and
 stockholders' equity $ 19,080.6 17,307.8
 Interest rate spread 3.78 3.26
 Effect of noninterest-bearing funds 0.66 0.91
 Net interest margin 4.44 4.17
 Nine Months ended Sept. 30 1992 1991
 (In thousands)
 Average balances Balance Rate Balance Rate
 Assets:
 Loans, net of unearned
 income $ 10,591.5 8.59 $9,738.1 10.04
 Short-term investments 49.9 4.17 117.6 6.80
 Federal funds sold &
 securities purchased
 under resale agreements 1,180.1 3.75 1,007.3 6.06
 Investment securities:
 Taxable 4,161.7 7.62 3,271.8 8.54
 Tax-exempt 832.8 10.08 839.7 9.96
 Equity securities 19.2 6.57 24.4 8.74
 Total investment
 securities 5,013.7 8.03 4,135.9 8.83
 Trading securities 56.4 6.39 101.7 7.47
 Receivable due from Resolution
 Trust Corporation 478.5 8.08
 Total earning assets 16,891.6 8.07 15,579.1 9.36
 Less reserve for
 loan losses (210.9) (176.1)
 Cash and due from banks 1,274.2 1,168.3
 All other assets 937.5 819.9
 Total assets $18,892.4 $17,391.2
 Liabilities:
 Retail savings deposits and
 interest-bearing
 transaction accounts $5,596.5 3.36 $4,335.5 4.98
 Time deposits 6,419.8 5.27 6,907.3 6.95
 Total interest-bearing
 deposits 12,016.3 4.38 11,242.8 6.19
 Federal funds purchased
 and other short-term
 borrowings 1,901.5 3.73 1,837.6 5.94
 Capital lease obligation 40.4 9.72 41.1 9.72
 Long-term debt 261.0 9.44 229.0 9.61
 Total interest-bearing
 liabilities 14,219.2 4.40 13,350.5 6.22
 Demand deposits 3,028.3 2,541.2
 All other liabilities 168.0 173.8
 Total liabilities 17,415.5 16,065.5
 Redeemable preferred
 stock 1.3 1.3
 Total stockholders' equity 1,475.6 1,324.4
 Total liabilities and
 stockholders' equity $18,892.4 $17,391.2
 Interest rate spread 3.67 3.14
 Effect of noninterest-bearing funds 0.69 0.88
 Net interest margin 4.36 4.02
 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- 10/15/92
 /CONTACT: Philip N. McCarty of Boatmen's Bancshares, 314-466-7720/
 (BOAT) CO: Boatmen's Bancshares ST: Missouri IN: FIN SU: ERN


TS -- NY026 -- 0437 10/15/92 12:40 EDT
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