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FIRST AMERICAN EARNINGS UP FOR FIFTH CONSECUTIVE QUARTER

 FIRST AMERICAN EARNINGS UP FOR FIFTH CONSECUTIVE QUARTER
 NASHVILLE, Tenn., April 23 /PRNewswire/ -- First American


Corporation (NASDAQ-NMS: FATN), the parent of First American National Bank, today reported net income of $8.5 million or $.36 earnings per share for first quarter 1992, compared with $1.4 million or $.06 earnings per share for first quarter 1991.
 The improvement in operating results is attributable to higher net interest income, reflecting an improved net interest margin, and to a lower loan loss provision in 1992, reflecting the Corporation's improved asset quality, according to Dennis C. Bottorff, president and CEO.
 "We're extremely pleased with our fifth consecutive quarter of increases in earnings and asset quality ratios," said Bottorff. "While loan volume continued downward, the level of core deposits was up, and First American realized higher net interest income in this quarter. These financial results demonstrate the underlying strength of First American and the continued improvements in soundness and profitability. We expect positive trends to continue in 1992 given our efforts to improve operating efficiency and asset quality."
 Net interest income increased $6.0 million on a taxable equivalent basis to $61.4 million for the three months ended March 31, 1992, compared to $55.4 million for the three months a year earlier due to a more favorable interest rate environment. The net interest margin was 4.30 percent and 3.91 percent for the respective periods.
 Nonperforming assets, which include nonperforming loans and foreclosed properties, amounted to $129.6 million at March 31, 1992, down 31 percent from $188.5 million a year ago. At March 31, 1992, nonperforming loans were $84.2 million, which was down 24 percent from the $110.8 million level at March 31, 1991.
 First American has 217 percent coverage of nonperforming loans by its allowance for possible loan losses at March 31, 1992, which is among the strongest coverage ratios in the industry. This coverage ratio compares with a 166 percent allowance coverage of nonperforming loans at March 31, 1991. The allowance for possible loan losses was $182.5 million at March 31, 1992, compared with $183.4 million one year earlier.
 Net loan charge-offs were $10.5 million for first quarter 1992 as compared with $24.6 million for first quarter 1991. The provision for loan losses totalled $12.0 million in the 1992 quarter, down 33 percent from the $18.0 million in the 1991 quarter.
 At March 31, 1992, First American's total assets were $6.5 billion; loans, net of unearned discount, $3.7 billion; deposits, $5.4 billion; and shareholders' equity, $394.9 million.
 First American Corporation is based in Nashville, Tenn. and operates 135 banking offices across the state. The Corporation owns First American Trust Company and First American Community Development Corporation, in addition to First American National Bank.
 First American's stock is traded in the over-the-counter securities market and is quoted on the NASDAQ National Market List under the symbol FATN.
 FIRST AMERICAN CORPORATION
 and Subsidiaries
 Consolidated Financial Highlights
 Quarter Ended March 31 Pct.
 (in thousands) 1992 1991 Change
 Per Common Share
 Net income $ 0.36 0.06 500
 Common book value 16.81 15.84 6
 Average Balances
 Loans, net of unearned
 discount and net
 deferred loan fees $ 3,768,769 $4,123,988 -9
 Investment securities 1,653,035 1,332,964 24
 Earning assets 5,741,772 5,748,163 --
 Total assets 6,307,651 6,249,416 1
 Demand deposits 967,521 855,658 13
 Interest-bearing deposits 4,307,769 4,457,232 -3
 Total core deposits 4,934,517 4,889,156 1
 Total deposits 5,275,290 5,312,890 -1
 Shareholders' equity 391,530 370,381 6
 Significant Ratios
 Return on assets 0.54 pct. 0.09 pct.
 Return on equity 8.76 1.51
 Net interest margin 4.30 3.91
 Risk-based capital ratio 10.02 9.16
 Leverage ratio 6.05 5.68
 Equity to assets (average) 6.21 5.93
 Credit Quality Data
 Nonperforming assets:
 Nonperforming loans $ 84,228 $ 110,823 -24
 Foreclosed properties 45,392 77,642 -42
 Total nonperforming assets 129,620 188,465 -31
 Nonperforming assets to
 loans plus foreclosed
 properties 3.43 pct. 4.58 pct.
 Net charge-offs: 10,487 24,581 -57
 Percent of average
 loans (annualized) 1.12 2.42
 Allowance for possible
 loan losses $ 182,544 $ 183,419 --
 Percent of period-end loans 4.88 pct. 4.54 pct.
 Percent of nonperforming loans 216.73 165.51
 Condensed Consolidated Statements of Operations
 Quarter Ended March 31
 1992 1991
 (in thousands)
 Interest income $ 114,110 $ 132,322
 Interest expense 54,022 79,107
 Net interest income 60,088 53,215
 Provision for loan losses 12,000 18,000
 Non-interest income 18,937 19,186
 Non-interest expense 54,722 52,369
 Income before income tax expense 12,303 2,032
 Income tax expense 3,775 655
 Net income $ 8,528 $ 1,377
 Per common share $ 0.36 $ 0.06
 Weighted average common
 shares outstanding 23,428 23,323
 Condensed Consolidated Balance Sheets
 March 31
 1992 1991
 (in thousands)
 Assets
 Cash and due from banks $ 469,280 $ 424,973
 Investment securities 1,705,016 1,217,817
 Federal funds sold and
 short-term investments 457,368 381,685
 Loans, net of allowance for
 possible loan losses of
 $182,544 and $183,419
 respectively 3,555,268 3,853,022
 Other assets 340,594 347,601
 Total assets $6,527,526 $6,225,098
 Liabilities
 Deposits $5,440,951 $5,279,982
 Borrowed funds 546,925 507,056
 Other liabilities 144,728 68,471
 Total liabilities 6,132,604 5,855,509
 Shareholders' equity 394,922 369,589
 Total liabilities and
 shareholders' equity $6,527,526 $6,225,098
 -0- 4/23/92
 /CONTACT: (Financial) Alex P. Waddell, 615-748-2739, or (Media) Vicki Kessler or Janeen Gregory, 615-748-2912, all of First American Corporation/
 (FATN) CO: First American Corporation ST: Tennessee IN: FIN SU: ERN


JZ-CM -- CH001 -- 1643 04/23/92 08:19 EDT
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