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FIRST CHICAGO EARNS $68.2 MILLION IN SECOND QUARTER; EARNINGS CONTINUE TO TREND HIGHER

 FIRST CHICAGO EARNS $68.2 MILLION IN SECOND QUARTER;
 EARNINGS CONTINUE TO TREND HIGHER
 CHICAGO, July 13 /PRNewswire/ -- First Chicago Corp. (NYSE: FNB) today issued its second quarter earnings report.
 FIRST CHICAGO CORP. AND SUBSIDIARIES
 Comparative Summary
 (Dollars in millions, except for per share data)
 Periods ended Three months Percent
 June 30 1992 1991 Change
 Net interest income --
 tax-equivalent basis $300.9 $275.0 + 9
 Provision for credit losses 105.0 90.0 +17
 Noninterest income 336.6 307.5 + 9
 Noninterest expense 420.4 394.8 + 6
 Net income (loss) 68.2 57.3 +19
 Earnings per common and common
 equivalent share 0.79 0.73 + 8
 Average balances
 Loans 25,113 27,601 - 9
 Earning assets 45,865 44,107 + 4
 Total assets 53,491 52,639 + 2
 Common equity 2,533 2,441 + 4
 Stockholders' equity 3,102 2,913 + 6
 Net interest margin (in percents) 2.64 2.50 + 6
 Return on assets (in percents) 0.51 0.44 +16
 Return on common stockholders'
 equity (in percents) 9.1 8.0 +14
 Periods ended Six months Percent
 June 30 1992 1991 Change
 Net interest income --
 tax-equivalent basis $ 597.1 $ 566.5 + 5
 Provision for credit losses 200.0 185.0 + 8
 Noninterest income 668.0 576.0 +16
 Noninterest expense 851.2 776.8 +10
 Net income 128.9 106.8 +21
 Earnings per common and common
 equivalent share 1.50 1.36 +10
 Average balances
 Loans 25,383 28,137 -10
 Earning assets 45,745 44,892 + 2
 Total assets 53,608 53,240 + 1
 Common equity 2,475 2,419 + 2
 Stockholders' equity 3,044 2,864 + 6
 Net interest margin (in percents) 2.62 2.54 + 3
 Return on assets (in percents) 0.48 0.40 +20
 Return on common stockholders'
 equity (in percents) 8.7 7.6 +14
 Percent
 At June 30 1992 1991 Change
 Total assets $47,391 $48,097 - 1
 Total deposits 29,623 30,716 - 4
 Loans 24,458 25,616 - 5
 Stockholders' equity 3,356 3,015 +11
 First Chicago Corp. today reported that earnings continued to improve in the second quarter of 1992. Net income rose 19 percent from the year-ago quarter to $68.2 million or 79 cents per common share, which was the highest level in eight quarters.
 In the 1992 first quarter, net income was $60.7 million or 71 cents per share, while 1991 second quarter earnings were $57.3 million or 73 cents per share.
 "We are encouraged by the performance of our core businesses, all of which are on track to achieving our objectives for this year," Chairman Richard L. Thomas said. "Stronger net interest income, higher fee revenues, and expense control efforts contributed to these improved results.
 "The quality of the commercial and industrial loan portfolio improved in the quarter. However, the depression in the commercial real estate sector continues unabated, and values have not yet stabilized," Thomas added. "Consequently, as we highlighted in our recent stock offering, we are evaluating the feasibility of various alternatives for accelerating the disposition of non-performing and non-strategic assets, particularly those involving real estate."
 At June 30, 1992, the Corporation's common equity-to-assets ratio, net of the investment in its capital markets subsidiary, increased to 6.1 percent. The issuance of 9.2 million shares of common stock on June 11 added approximately $292 million to the Corporation's capital account.
 The estimated risk-adjusted Tier 1 capital ratio under 1992 regulatory rules was 6.4 percent and the total risk-adjusted capital ratio was 10.7 percent. Book value of First Chicago's common equity was $35.09 per share at June 30.
 For the first six months of 1992, net income was $128.9 million or $1.50 per share compared with $106.8 million or $1.36 per share in 1991.
 Return on assets for the second quarter was 0.51 percent and return on common equity was 9.1 percent. For six months, return on assets was 0.48 percent and return on common equity was 8.7 percent.
 NET INTEREST INCOME
 Net interest income on a tax-equivalent basis increased to $300.9 million from $275.0 million a year ago.
 Average earning assets were $45.9 billion for the second quarter, compared with $44.1 billion a year ago.
 The corporation's net interest margin was 2.64 percent in the second quarter, compared with 2.61 percent in the 1992 first quarter and 2.50 percent in the year-ago period. Adjusted for the effects of credit card securitization, the comparable margins were 3.08 percent in the second quarter, 3.07 percent in the 1992 first quarter and 2.92 percent in the 1991 second quarter.
 NONINTEREST INCOME
 Noninterest income for the second quarter was $336.6 million, compared with $307.5 million in the year-ago quarter. Foreign exchange trading profits decreased to $15.9 million from $19.3 million in the 1991 second quarter. Trading account profits were $21.1 million, compared with $22.5 million a year ago.
 Net equity securities gains were $41.8 million in the second quarter, substantially all of which were generated by the venture capital business, compared with $11.0 million a year-ago. Investment securities gains in the 1992 second quarter were $2.2 million compared with $100,000 in the year-earlier period.
 Credit card fees increased to $116.6 million from $98.5 million a year ago. Fiduciary and investment management fees were $48.5 million, compared with $43.0 million last year. Service charges and commissions were $87.6 million, compared with $99.2 million in the year-ago quarter.
 NONINTEREST EXPENSE
 Noninterest expense, excluding the provision for other real estate, was $398.4 million in the second quarter, compared with $407.8 million in the 1992 first quarter, and $375.1 million in the year-ago period. The provision for other real estate assets was $22.0 million in the second quarter, compared with $23.0 million in the 1992 first quarter and $19.7 million in the year-ago quarter.
 CREDIT QUALITY
 The provision for credit losses was $105 million in the second quarter. Of the total, $65 million was allocated for commercial exposure and $40 million for consumer exposure.
 Total net charge-offs in the second quarter were $115 million. Commercial loan net charge-offs were $81 million. Consumer loan net charge-offs were $34 million.
 At June 30, 1992, the Corporation's allowance for credit losses was $858 million or 3.5 percent of loans. While the allowance is available to absorb potential losses in the Corporation's entire credit portfolio, its composition reflects internal allocations to specific portfolio sectors. The reserve related to the commercial portfolio was 3.4 percent of commercial loans. The reserve related to consumer credit was 3.9 percent of consumer loans.
 Total nonperforming loans were $795 million in the second quarter or 3.3 percent of loans at June 30, 1992. Of these, nonperforming commercial real estate loans were $368 million. Nonperforming loans in the highly-leveraged-transaction portfolio were $132 million. Troubled- country debtor nonperforming loans were $83 million.
 The ratio of reserves to nonperforming loans was 108 percent at quarter-end.
 At June 30, 1992, the Corporation had $479 million of other real estate assets that are carried at the lower of cost or fair market value.
 -0- 7/13/92
 /CONTACT: Lisabeth Weiner of First Chicago, 312-732-4455/
 /FIRST AND FINAL ADD -- TABULAR MATERIAL -- TO FOLLOW/
 (FNB) CO: First Chicago Corporation ST: Illinois IN: FIN SU: ERN


SH -- NY019 -- 8517 07/13/92 09:45 EDT
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