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EAB'S NET INCOME UP 32 PERCENT IN THIRD QUARTER 1993 AS EARNINGS REBOUND GAINS MOMENTUM; IMPROVEMENT IN ALL KEY PERFORMANCE MEASURES

 UNIONDALE, N.Y., Oct. 27 /PRNewswire/ -- EAB today reported that its consolidated net income increased 32 percent to $19.8 million in the three months ended Sept. 30, compared with $15 million in the comparable period a year ago. Consolidated net income for the first nine months of 1993 increased 31 percent to $49.7 million, compared with $37.8 million in the year ago period.
 "By any performance measure, EAB's success has been noteworthy," said Edward Travaglianti, EAB's president and chief operating officer. "Profits were up substantially, credit quality remained solid, and the bank's capital position ranked among the highest in the industry. I expect we will sustain this momentum in the fourth quarter, making 1993 one of our best years ever."
 Net interest income in the third quarter increased $2.3 million, or 4.21 percent, compared with the third quarter of 1992. Average interest-earning assets increased to $5.35 billion for the third quarter, compared with $4.59 billion a year ago. Average interest- bearing liabilities were $3.97 billion, compared with $3.40 billion during the prior year quarter.
 The provision for loan losses for the third quarter was $7.5 million, down $.5 million from a year ago. For the first nine months of 1993, the loan loss provision was $21.5 million, compared with $28.1 million during the comparable period last year. At Sept. 30, 1993, the allowance for loan losses was $77.3 million, or 3.94 percent of total loans.
 Other operating income for the current quarter was $15.9 million, representing an increase of $1.0 million over 1992 due principally to increased fees and other income. Other operating expenses for the third quarter totaled $44.8 million, which were $1.0 million lower than the prior year period due to lower foreclosed property expenses and other expenses.
 EAB's continuing earnings growth has further strengthened its solid capital base, resulting in a Tier I risk-based capital ratio of 13.47 percent and a total ratio of 14.74 percent at Sept. 30, 1993.
 EAB is a full-service commercial bank with 88 locations in the New York City/Long Island area. It is New York state-chartered and is a member of the F.D.I.C., the Federal Reserve System, and the New York Clearing House Association.
 EAB is a subsidiary of ABN AMRO Bank N.V., the 15th largest bank in the world, with more than $257 billion in assets and more than 1,800 branches in 55 countries around the world.
 EAB AND SUBSIDIARIES
 Consolidated Financial Highlights
 (In thousands)
 Quarter ended Sept. 30 1993 1992(A)
 Net interest income $56,791 $54,498
 Provision for loan losses 7,500 8,000
 Other operating income 15,853 14,823
 Other operating expenses 44,795 45,819
 Net income 19,849 15,002
 Nine months ended Sept. 30 1993 1992
 Net interest income $173,468 $162,709
 Provision for loan losses 21,500 28,100
 Other operating income 39,371 47,758
 Other operating expenses 140,146 143,065
 Net income 49,693 37,802
 At September 30 1993 1992
 Total assets $5,886,342 $5,169,226
 Loans, net of unearned income 1,962,009 1,876,708
 Total investments 3,541,805 2,914,649
 Deposits 4,392,733 4,220,146
 Shareholder's equity 373,886 307,004
 Daily average for the quarter ended Sept. 30 1993 1992
 Total assets $5,783,370 $4,959,690
 Loans, net of unearned income 1,965,275 1,836,338
 Total investments 3,386,076 2,749,859
 Deposits 4,383,515 4,264,662
 Shareholder's equity 364,001 298,359
 Financial ratios at Sept. 30 1993 1992
 Tier I equity to period end assets (pct.) 6.35 5.94
 Risk-Based Capital Ratios:
 Tier I 13.47 11.26
 Total 14.74 12.53
 Allowance for loan losses to loans 3.94 3.81
 Net interest yield (quarter) 4.25 4.80
 Net interest yield (YTD) 4.44 4.97
 Average loans to average deposits (quarter) 44.83 43.06
 Average loans to average deposits (YTD) 44.78 43.87
 Annualized net income as a percentage of:
 Average total assets 1.17 1.05
 Average shareholder's equity 19.16 17.64
 (A) -- Certain 1992 amounts have been reclassified to conform with the current year's presentation.
 EAB AND SUBSIDIARIES
 Consolidated Balance Sheets
 (In thousands)
 9/30/93 12/31/92 9/30/92
 Assets
 Earning Assets
 Loans, net of unearned income $1,962,009 $1,926,102 $1,876,708
 Allowance for loan losses (77,341) (73,028) (71,555)
 Net loans 1,884,668 1,853,074 1,805,153
 Investment securities 3,527,113 3,162,443 2,863,428
 Trading account assets 12,759 7,675 7,307
 Federal funds sold and securities
 purchased under agreements to resell -- 75,000 40,000
 Interest-bearing deposits with banks 1,933 3,682 3,914
 Total investments 3,541,805 3,248,800 2,914,649
 Total earning assets 5,426,473 5,101,874 4,719,802
 Cash and due from banks 276,411 332,195 273,278
 Premises and equipment, net 59,337 61,249 63,039
 Customers' acceptance liability 10,452 9,995 11,020
 Other real estate 14,363 14,288 10,455
 Other assets 99,306 118,774 91,632
 Total Assets $5,886,342 $5,638,375 $5,169,226
 Liabilities
 Deposits
 Demand $1,278,558 $1,302,968 $1,126,298
 Savings 2,005,559 2,055,060 1,977,862
 Time 897,067 961,430 1,045,890
 Foreign offices 211,549 108,418 70,096
 Total deposits 4,392,733 4,427,876 4,220,146
 Borrowings
 Federal funds purchased and
 securities sold under agreements
 to repurchase 436,043 437,789 269,065
 Short-term borrowings 440,460 112,441 138,951
 Total borrowings 876,503 550,230 408,016
 Total deposits and borrowings 5,269,236 4,978,106 4,628,162
 Acceptances outstanding 11,581 10,836 12,162
 Accrued expenses & other liabilities 231,639 325,240 221,898
 Total Liabilities 5,512,456 5,314,182 4,862,222
 Shareholder's Equity
 Common stock 99,000 99,000 99,000
 Surplus 341,458 341,458 341,458
 Retained earnings (deficit) (66,572) (116,265) (133,454)
 Total Shareholder's Equity 373,886 324,193 307,004
 Total Liabilities and Shareholder's
 Equity $5,886,342 $5,638,375 $5,169,226
 Consolidated Statements of Operations
 (In thousands)
 Periods ended Quarter Nine Months
 Sept. 30 1993 1992(A) 1993 1992(A)
 Interest Income
 Loans, including fees $43,901 $41,907 $130,666 $129,987
 Investment securities and trading
 account assets
 Taxable 46,945 43,943 146,877 131,160
 Non-taxable 63 29 139 154
 Other interest income 29 988 90 2,884
 Deposits with banks 32 139 156 621
 Total interest income 90,970 87,006 277,928 264,806
 Interest Expense
 Deposits
 Savings 9,956 14,248 33,109 46,135
 Time 11,839 14,645 36,823 47,773
 Foreign offices 973 327 1,867 1,078
 Interest expense on deposits 22,768 29,220 71,799 94,986
 Borrowings
 Federal funds purchased and
 securities sold under agreements
 to repurchase 4,159 2,436 12,717 5,636
 Short-term borrowings 3,034 248 8,033 445
 Interest rate swaps 4,218 604 11,911 1,030
 Interest expense on borrowings 11,411 3,288 32,661 7,111
 Total interest expense 34,179 32,508 104,460 102,097
 Net Interest Income 56,791 54,498 173,468 162,709
 Provision for loan losses 7,500 8,000 21,500 28,100
 Net Interest Income After
 Provision for Loan Losses 49,291 46,498 151,968 134,609
 Other Operating Income
 Service charges on deposit
 accounts 9,876 9,144 29,144 27,210
 Other charges and fees 4,573 4,548 14,110 13,093
 Trading gains, net 839 896 2,741 2,501
 Investment securities
 transactions, net (334) -- (8,815) 3,817
 Other income 899 235 2,191 1,137
 Total other operating income 15,853 14,823 39,371 47,758
 Other Operating Expenses
 Salaries and employee benefits 19,803 19,198 60,389 66,259
 Occupancy expense, net 5,599 6,151 16,954 18,697
 Equipment expense 1,577 1,558 5,338 5,818
 Intercompany processing costs 11,565 10,328 32,822 21,785
 Other expenses 6,251 8,584 24,643 30,506
 Total other operating expenses 44,795 45,819 140,146 143,065
 Income Before Income Taxes
 and Extraordinary Item 20,349 15,502 51,193 39,302
 Income taxes, net 500 500 1,500 1,500
 Net Income $19,849 $15,002 $49,693 $37,802
 (A) -- Certain 1992 amounts have been reclassified to conform with the current year's presentation.
 -0- 10/27/93
 /CONTACT: Eric Starkman of Christopher Thomas Associates, 516-794-2400, or Linda Strongin of EAB, 516-296-5540/


CO: EAB ST: New York IN: FIN SU: ERN

CK -- NY093 -- 7474 10/27/93 16:03 EDT
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Date:Oct 27, 1993
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