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FIRST AMERICAN REPORTS SECOND QUARTER EARNINGS

 NASHVILLE, Tenn., July 15 /PRNewswire/ -- First American Corporation (NASDAQ-NMS: FATN) today reported net income of $26.0 million, or $1.01 earnings per share during the second quarter of 1993, an increase of 140 percent on a per share basis from $9.8 million, or $.42 per share in the 1992 second quarter. The return on average assets (ROA) and return on average equity (ROE) were 1.55 and 20.96 percent, respectively.
 For the first six months of 1993, net income equaled $44.7 million, up 144 percent from the comparable 1992 period. The increases were a result of higher net interest income, a negative provision for loan losses, higher non interest income and controlled non interest expenses.
 "We are extremely pleased with our second quarter results," said Dennis C. Bottorff, president and CEO. "Net loan chargeoffs and nonperforming assets are down 63 and 38 percent, respectively, from 1992 second quarter levels. The negative provision in the current quarter reflects this continued improvement in the quality of our loan portfolio.
 "Another significant achievement was the record pre-tax, pre- provision earnings of $32.2 million in the 1993 second quarter, a 35 percent increase (on a tax equivalent basis) from a year ago," he said.
 First American's credit quality trends improved significantly during the quarter. Net loan chargeoffs were $3.1 million, or .33 percent of average loans, for the quarter ended June 30, 1993, down from $8.3 million, or .90 percent of average loans in the comparable 1992 quarter. Nonperforming assets, which include nonperforming loans of $38.7 million and foreclosed properties of $33.0 million, were $71.7 million at June 30, 1993, down from $116.1 million one year ago. Nonperforming assets were 1.88 percent of total loans and foreclosed property at quarter-end.
 The pipeline of other potential problem loans also diminished. These loans, internally categorized as "substandard" but still performing, were $110 million at June 30, 1993, down 45 percent from $201 million at June 30, 1992.
 As a result of the continued improvements in asset quality, First American reduced its allowance for loan losses from $180.7 million at March 31, 1993, to $167.6 million at June 30, 1993. The reduction in the allowance for loan losses resulted from a $10.0 million negative provision for loan losses in the quarter, plus $3.1 million of net loan chargeoffs.
 "In light of further improvements in the company's credit quality, we will be reviewing our allowance for loan loss methodology to determine if any refinements are advisable. This is to ensure that we continuously arrive at the appropriate allowance level on a quarterly basis," Bottorff said.
 The $10.0 million negative provision for loan losses contributed $.25 to per share earnings during the 1993 second quarter. First American's allowance for loan losses equaled 4.43 percent of net loans at June 30, 1993.
 Net interest income for the 1993 second quarter was $67.6 million on a tax equivalent basis, up 9.7 percent from $61.6 million from the quarter ended June 30, 1992, and up 2.7 percent from $65.8 million in the preceding 1993 first quarter. The net interest margin was 4.44 percent in the current quarter, up from 4.22 percent in the year-ago quarter and down slightly from 4.45 percent in the 1993 first quarter.
 Average net loans were $3.76 billion for the second quarter, an increase of $46 million from the first quarter and $79 million from the
1992 second quarter. At June 30, 1993, First American Corporation's total assets were $6.7 billion; loans net of unearned discount, $3.8 billion; and deposits, $5.4 billion. Shareholders' equity equaled $508.9 million, breaking the half-billion mark for the first time in the company's history. The total risk-based capital, Tier I and leverage ratios for the corporation were 13.49, 10.81 and 7.40 percent, respectively.
 First American Corporation, the Nashville-based parent company of First American National Bank, also owns First American Trust Company and First American Community Development Corporation. Approximately 3,100 people work for First American in 135 banking offices.
 First American's stock is traded in the over-the-counter securities market and is quoted on the NASDAQ National Market System under the symbol FATN.
 FIRST AMERICAN CORPORATION
 and Subsidiaries
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 Quarter Ended Six Months Ended
 June 30 June 30
 1993 1992 Pct. 1993 1992 Pct.
 Change Change
 (in thousands)
 Interest income $ 106,568 $ 111,256 (4) $ 211,136 $225,366 (6)
 Interest expense 39,903 50,792 (21) 79,658 104,814 (24)
 Net interest
 income 66,665 60,464 10 131,478 120,552 9
 Provision for loan
 losses (10,000) 8,500 (218) (8,000) 20,500 (139)
 Non-interest
 income 22,624 19,028 19 42,053 37,965 11
 Non-interest
 expense 57,990 56,848 2 112,591 111,570 1
 Income before income
 tax expense 41,299 14,144 192 68,940 26,447 161
 Income tax expense 15,269 4,393 248 25,490 8,168 212
 Net income before
 cumulative effect of
 accounting principle
 changes $ 26,030 $ 9,751 167 $ 43,450 $ 18,279 138
 Cumulative effect
 of changes in
 accounting
 principles net of
 tax, for post-
 retirement benefits
 and income taxes --- --- 1,216 --- NA
 Net income $ 26,030 $ 9,751 167 $ 44,666 $ 18,279 144
 Per common share:
 Income before
 cumulative effect
 of accounting
 principle
 changes $ 1.01 $ 0.42 140 $ 1.68 $ 0.78 115
 Net income 1.01 0.42 140 1.73 0.78 122
 Cash dividends $ 0.15 $ --- NA $ 0.25 $ --- NA
 Weighted average
 common shares
 outstanding 25,903 23,553 25,864 23,490
 CONDENSED CONSOLIDATED BALANCE SHEETS
 (in thousands)
 June 30
 1993 1992
 Assets
 Cash and due from
 banks $ 388,657 $ 596,429
 Investment
 securities 2,179,792 2,014,243
 Federal funds
 sold and short-
 term investments 221,308 202,586
 Loans, net of
 allowance for
 possible loan
 losses of $167,600
 and $182,768,
 respectively 3,618,808 3,468,040
 Other assets 312,612 291,270
 Total assets $ 6,721,177 $ 6,572,568
 Liabilities
 Deposits $ 5,446,055 $ 5,439,930
 Borrowed funds 684,964 510,891
 Other liabilities 81,250 216,363
 Total
 liabilities 6,212,269 6,167,184
 Shareholders'
 equity 508,908 405,384
 Total liabilities
 and shareholders'
 equity $ 6,721,177 $ 6,572,568
 FIRST AMERICAN CORPORATION and Subsidiaries
 Consolidated Financial Highlights
 Quarter Ended Six Months Ended
 June 30, Pct. June 30, Pct.
 (in thousands) 1993 1992 Change 1993 1992 Change
 Per Common
 Share
 Net income
 before
 cumulative
 effect of
 acctg principle
 changes $1.01 $0.42 140 $1.68 $0.78 115
 Net income 1.01 0.42 140 1.73 0.78 122
 Dividends 0.15 - 0.25 - -
 Common Book Value - - 19.63 17.19 14
 Average
 Balances
 Loans, net
 of unearned
 discount and
 net deferred
 loan fees $3,760,699 $3,682,191 2 $3,737,931 $3,725,480 0
 Securities 2,217,325 1,601,229 38 2,152,098 1,627,132 32
 Earning
 assets 6,111,883 5,879,266 4 6,054,911 5,810,519 4
 Total
 assets 6,735,339 6,426,411 5 6,679,025 6,367,031 5
 Demand
 deposits 1,113,487 1,019,681 9 1,085,123 993,601 9
 Interest-
 bearing
 deposits 4,389,364 4,406,597 (0) 4,384,707 4,357,183 -
 Total core
 deposits 5,094,746 5,015,117 2 5,074,138 4,974,817 2
 Total
 deposits 5,502,851 5,426,278 1 5,469,830 5,350,784 2
 Shareholders'
 equity 498,043 403,310 23 489,817 397,420 23
 Significant
 Rat
 Return on
 average
 assets 1.55 0.61 1.31(A) 0.58
 Return on
 average
 equity 20.96 9.72 17.89(A) 9.25
 Net interest
 margin 4.44 4.22 4.44 4.26
 Equity to assets
 (average) 7.39 6.28 7.33 6.24
 Total risk-based
 capital ratio 13.49 10.78
 Leverage ratio 7.40 6.10
 Credit
 Quality Data
 Nonperforming
 assets:
 Nonperforming
 loans $38,708 $71,713 (46)
 Foreclosed
 properties 33,014 44,340 (26)
 Total
 nonperforming
 assets 71,722 116,053 (38)
 Nonperforming
 assets to loans
 plus foreclosed
 properties (percent) 1.88 3.14
 Allowance for possible
 loan losses $167,600 $182,768 (8)
 Percent of
 period-end loans 4.43 5.01
 Percent of
 nonperforming loans 432.98 254.86
 Net charge-offs: $ 3,071 $8,276 (63) $5,508 $18,763 (71)
 Percent of
 average loans
 (annualized) 0.33 0.90 0.30 1.01
 (A) Excluding the effect of changes in accounting principles.
 -0- 7/15/93
 /CONTACT: (Financial) Carroll Kimball, 615-748-2455, Fax 615-748-2755, or (Media) Anna Grimes or Janeen Gregory, 615-748-2 Fax 615-748-2535/
 (FATN)


CO: First American Corporation ST: Tennessee IN: FIN SU: ERN

DF -- CH013 -- 2365 07/16/93 09:41 EDT
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