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FIRST AMERICAN REPORTS IMPROVED EARNINGS

 FIRST AMERICAN REPORTS IMPROVED EARNINGS
 NASHVILLE, Tenn., Jan. 23 /PRNewswire/ -- First American Corporation


(NASDAQ-NMS: FATN), the parent firm of Tennessee's First American National Bank, today reported improved earnings for fourth quarter 1991 and for the year, with net income for the quarter totalling $6.9 million, or $.30 per share; for the full year, $16.9 million or $.73 per share.
 Comparable periods in 1990 were a net loss of $18.3 million, or $.79 per share, for the fourth quarter; and of $62.4 million, or $2.69 per share, for the full year.
 The improvement in operating results was primarily attributable to a lower loan loss provision in 1991, one that reflected improved asset quality for First American, according to President Dennis C. Bottorff.
 "Certainly we are encouraged by these improved results, especially in the area of nonperforming assets," Bottorff said. "They indicate we are advancing on our corporate goals, which are financial soundness, first; profitability, second; and growth, third."
 Nonperforming assets, which include nonperforming loans and foreclosed properties, were $142.2 million at Dec. 31, 1991, down 32 percent from $209.7 million a year earlier. Nonperforming loans of $89.5 million improved even more, down 44 percent from the $160.6-million level at year-end 1990.
 At the end of this past year, First American had 202 percent coverage of nonperforming loans by its allowance for possible loan losses. That coverage compares to 118 percent for the earlier year end. The allowance for possible loan losses was $181.0 million at Dec. 31, 1991, compared with $190.0 million a year earlier.
 Net loan charge-offs were $17.9 million for fourth quarter 1991. They were $23.6 million for fourth quarter 1990. The provision for loan losses totalled $12.8 million and $38.6 million for the same respective periods.
 Net charge-offs for 1991 and 1990 were $60.5 million and $119.0 million, respectively. The provision for loan losses totalled $51.6 million and $193.7 million for the same two comparative years.
 At year-end 1991, First American Corporation's total assets were $6.4 billion; loans, net of unearned discount, $3.8 billion; deposits, $5.3 billion; and shareholders' equity, $385.3 million.
 At Dec. 31, 1991, the total risk-based capital and leverage ratios for the Corporation were 10.48 percent and 5.96 percent, respectively. The improved numbers for 1991 compare with 9.47 percent and 5.44 percent for the previous year end.
 "First American management is dedicated to increasing shareholder value," Bottorff said. "We are now very focused on shared objectives -- primarily meeting the banking needs of individual customers and small- to mid-sized businesses across Tennessee."
 First American Corporation's common stock, traded in the over-the-counter securities market, is quoted on the NASDAQ National Market List under the symbol FATN. First American is also the parent of First American Trust Company and First American Community Development Corporation.
 FIRST AMERICAN CORPORATION AND SUBSIDIARIES
 Condensed Consolidated Statements of Operations
 (in thousands)
 Quarter Ended Year Ended
 December 31, December 31,
 1991 1990 1991 1990
 Interest income $121,225 $143,525 $503,230 $621,192
 Interest expense 64,308 89,265 286,770 394,339
 Net interest income 56,917 54,260 216,460 226,853
 Provision for loan losses 12,770 38,626 51,570 193,677
 Gain on sale of
 branches and
 subsidiary bank - - 3,378 4,050
 Gain on sale of credit
 card receivables - - - 34,323
 Non-interest income 20,584 20,030 81,318 77,822
 Non-interest expense 56,130 56,880 225,888 226,161
 Income (loss) before income
 tax expense (benefit) 8,601 (21,216) 23,698 (76,790)
 Income tax expense (benefit) 1,718 (2,906) 6,761 (14,369)
 Net income (loss) $6,883 $(18,310) $16,937 $(62,421)
 Per common share: $ 0.30 $ (0.79) $ 0.73 $ (2.69)
 Weighted average common
 shares outstanding 23,348 23,307 23,337 23,224
 Return on average
 assets (Pct.) 0.44 - 0.27 -
 Return on average
 equity (Pct.) 7.10 - 4.50 -
 Condensed Consolidated
 Balance Sheets
 (in thousands)
 December 31,
 1991 1990
 Assets
 Cash and due from banks $527,548 $514,082
 Investment securities 1,661,803 1,508,795
 Federal funds sold and
 short-term investments 253,664 96,704
 Loans, net of allowance
 for possible loan
 losses of $181,031
 and $190,000,
 respectively 3,626,226 4,035,854
 Other assets 307,726 324,827
 Total assets $6,376,967 $6,480,262
 Liabilities
 Deposits $5,332,065 $5,556,026
 Borrowed funds 538,099 480,518
 Other liabilities 121,493 75,709
 Total liabilities 5,991,657 6,112,253
 Shareholders' equity 385,310 368,009
 Total liabilities
 and shareholders'
 equity $6,376,967 $6,480,262
 Book value per share $ 16.47 $ 15.79
 -0- 1/23/92
 /CONTACT: (Financial) Alex P. Waddell, 615-748-2739, or (Media) Marta Goodall, 615-748-2912, both of First American Corporation/
 (FATN) CO: First American Corporation; First American National Bank ST: Tennessee IN: FIN SU: ERN


CM-DF -- CH009 -- 3001 01/23/92 16:36 EST
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Date:Jan 23, 1992
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