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CORESTATES FINANCIAL CORP REPORTS STRONG SECOND QUARTER, FIRST HALF

 CORESTATES FINANCIAL CORP REPORTS
 STRONG SECOND QUARTER, FIRST HALF
 PHILADELPHIA, July 21 /PRNewswire/ -- CoreStates Financial Corp (NASDAQ: CSFN) today reported second quarter net income of $65,244,000 or $1.18 per share, up 24 percent from a year earlier. Net income for the first six months was $123,440,000 or $2.24 per share.
 Last year's second quarter net income was 97 cents per share, after restatement to reflect FAS 109, a new rule changing the way companies account for deferred taxes. Restated net income for the first half of 1991 was $1.91 per share.
 The second quarter 1992 net also was up strongly from the $1.06 per share CoreStates reported for the first quarter.
 The quarterly earnings reflected a return on average assets of 1.24 percent and a return on average equity of 16.45 percent. For the first six months ROA was 1.18 percent and ROE was 15.75 percent.
 "Our earnings continue to rebound in step with the recovery our customers are experiencing," said Terrence A. Larsen, chairman.
 The quarterly loan loss provision was $32 million, down from $48 million a year ago, reflecting both the sale since the fourth quarter of consumer credit outstandings totaling $1.3 billion and the general improvement in credit outlook this year, he said.
 "The improvement on the credit side is gratifying," Larsen added, "though loan demand is still sluggish. We look forward to the next stage of the economic recovery, in which our customers will begin to invest in expansion, and we stand ready to finance their needs as they move into that phase."
 Net interest income was down 4 percent from a year ago, reflecting decreased average earning assets. The net interest margin, however, was up year-to-year by 23 basis points to 5.71 percent for the quarter.
 Non-interest revenues from fee-based services were up in all categories except debit and credit card fees, which declined year-to-year because of the sale of $1 billion credit card outstandings in last year's fourth quarter.
 Compared with the first quarter of 1992, second quarter net interest income was up slightly and revenues from fee-based services showed solid improvement.
 Larsen said the results reflected benefits from CoreStates' continuing cost management efforts. Non-financial expenses were down slightly for the quarter compared to a year ago.
 Non-performing assets were flat compared to the first quarter, he said. The addition of a single credit of $61 million to the total offset a significant level of repayments during the quarter. The total as of June 30 was $433 million, of which $335 million were non-accrual loans, $32 million renegotiated loans and $66 million was real estate foreclosed or under in-substance foreclosure.
 After transfer of $15 million of loan loss reserves as a result of the second quarter sale of CoreStates' Signal consumer finance subsidiary assets, the $32 million provision for loan losses brought the total loan loss reserves to $324 million, or 88 percent of non-performing loans.
 Net charge-offs were $32 million for the second quarter and $65 million for the first six months, compared with $60 million and $121 million, respectively, a year ago.
 CoreStates' consolidated total assets at June 30 were $21.6 billion, including consolidated net loans of $14.7 billion. Consolidated total deposits were $15.9 billion.
 Shareholders' equity was $1.6 billion, representing 7.5 percent of total assets. CoreStates' Tier 1 leverage ratio (Tier 1 or core capital as a percentage of quarterly average assets) was 7.4 percent for the second quarter.
 Tier 1 capital at June 30 was 8.5 percent of risk-adjusted assets and total capital was 12.6 percent of risk-adjusted assets, compared to 1992 yearend regulatory requirements of 4 percent and 8 percent, respectively.
 Adoption of the FAS 109 tax accounting rule requires that past earnings be restated, with the general effect of changing the years in which certain tax benefits are recognized. For the full year 1991, this effect will be to reduce earnings from the originally reported $4.19 per share to $4.03 per share; for the year 1990, the effect will be to increase earnings from the originally reported $2.06 to $2.21 per share. The restatements have no material impact on CoreStates' current financial position.
 CORESTATES FINANCIAL CORP
 (in thousands, except per share amounts)
 Three Months Ended June 30 1992 1991
 Net income applicable to common stock $65,244 $52,643(A)
 Per common share $1.18 $.97(A)
 Average number of shares outstanding 55,320 54,384
 Six Months Ended June 30 1992 1991
 Net income applicable to common stock $123,440 $103,846(A)
 Per common share $2.24 $1.91(A)
 Average number of shares outstanding 55,162 54,358
 (A) Restated to reflect CoreStates' retroactive adoption of Statement of Financial Accounting Standards No. 109, Accounting for Income Taxes (FAS 109). The impact of FAS 109 on the second quarter and six month period of 1991 provision for income taxes was an increase of $3.4 million or $.06 per share, and $3.0 million or $.06 per share, respectively.
 /delval/
 -0- 7/21/92
 /CONTACT: Gary Brooten or Gregg Feistman, 215-973-3546, both of CoreStates Financial/
 (CSFN) CO: CoreStates Financial Corp ST: Pennsylvania IN: FIN SU: ERN


LJ -- PH021 -- 1279 07/21/92 11:26 EDT
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Date:Jul 21, 1992
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