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FIRST CHICAGO REPORTS FIRST QUARTER NET INCOME OF $60.7 MILLION

 FIRST CHICAGO REPORTS FIRST QUARTER NET INCOME OF $60.7 MILLION
 CHICAGO, April 10 /PRNewswire/ -- First Chicago Corp. (NYSE: FNB) today released the following:
 FIRST CHICAGO CORP. AND SUBSIDIARIES
 Comparative Summary
 (Dollars in millions, except for per share data)
 Percent
 Three Months Ended March 31 1992 1991 Change
 Earnings
 Net interest income
 --tax-equivalent basis $296.2 $291.5 +2
 Provision for credit losses 95.0 95.0 --
 Noninterest income 331.4 268.5 +23
 Noninterest expense 430.8 382.0 +13
 Net income 60.7 49.5 +23
 Earnings per common and common
 equivalent share 0.71 0.63 +13
 Average Balances/Related Ratios
 Loans 25,653 28,673 -11
 Earning assets 45,625 45,677 --
 Total assets 53,724 53,841 --
 Common equity 2,417 2,395 +1
 Stockholders' equity 2,986 2,814 +6
 Net interest margin (in percents) 2.61 2.59
 Return on assets (in percents) 0.45 0.37
 Return on common
 stockholders' equity (in percents) 8.3 7.1
 Percent
 Balance Sheet At March 31 Change
 Total assets $47,286 $49,677 -5
 Total deposits 30,926 32,433 -5
 Loans 24,728 27,766 -11
 Stockholders' equity 3,015 2,842 +6
 First Chicago Corp. today reported that first quarter net income rose to $60.7 million or 71 cents per common share from earnings of $49.5 million or 63 cents per share in the comparable year-ago period.
 "First quarter earnings are consistent with our expectations for 1992 and we view the year with measured optimism," Chairman Richard L. Thomas said. "An important objective in 1992 will be to improve our earnings, while strengthening our balance sheet at the same time. Accomplishing this will require continued tight control of operating expenses and careful management of credit costs."
 For the first quarter, the combined credit provision, which includes the loan loss provision and the provision for other real estate assets, was $118 million compared with $180 million in the fourth quarter of 1991 and $110 million in the year-ago period. Nonperforming assets of $1.3 billion at March 31, were essentially unchanged from the Dec. 31 level, and were less than the $1.6 billion of a year ago. The ratio of reserves to nonperforming loans was 102 percent at quarter-end.
 At March 31, the corporation's common equity-to-assets ratio, net of its investment in its capital markets subsidiary, was 5.4 percent, up from 5.1 percent at Dec. 31, 1991. The estimated risk-adjusted Tier 1 capital ratio under 1992 regulatory rules was 5.8 percent and the total risk-adjusted ratio was 9.9 percent. Book value of First Chicago's common equity was $35.07 per share at March 31.
 The corporation's return on assets was 0.45 percent for the quarter and the return on common equity was 8.3 percent.
 NET INTEREST INCOME.
 Net interest income on a tax-equivalent basis was $296.2 million, up from $291.5 million a year ago.
 Average earning assets were $45.6 billion for the first quarter, compared with $45.7 billion a year ago.
 The corporation's net interest margin was 2.61 percent in the first quarter, compared with 2.59 percent in the year-ago period and 2.40 percent in the 1991 fourth quarter. Adjusted for the effects of credit card securitization, the comparable margins were 3.07 percent in the first quarter, 2.99 percent in the 1991 first quarter and 2.89 percent in the 1991 fourth quarter.
 NONINTEREST INCOME.
 Noninterest income for the first quarter was $331.4 million, compared with $268.5 million in the year-ago quarter. Foreign exchange trading profits decreased to $14.5 million from $29.5 million in the 1991 first quarter. Trading account profits were $16.9 million, compared with $13.5 million a year ago.
 Gains on the sale of equity securities were $45.8 million in the quarter. This figure includes net gains of $33.4 million generated from the venture capital business. Equity securities gains in last year's first quarter were $3.7 million. Investment securities gains in the 1992 first quarter were $6.3 million compared with $100,000 in the year- earlier period.
 Credit card fees increased to $107.7 million from $91.5 million a year ago. Fiduciary and investment management fees were $46.6 million, versus $40.0 million last year. Service charges and commissions were $90.1 million, compared with $73.9 million in the 1991 first quarter.
 "We are seeing some encouraging revenue trends in all our core businesses," Thomas added. "Also, our market-driven revenues, led by strong securities gains, totaled $83.5 million in the quarter."
 NONINTEREST EXPENSE.
 Noninterest expense for the first quarter was $430.8 million, compared with $382.0 million in the year-ago period. These numbers include provisions for other real estate assets, which increased to $23.0 million from $14.6 million in the year-ago quarter. The balance of the increase in operating expenses is attributable to a number of different items, some of which reflect differences in the timing of expenses.
 CREDIT QUALITY.
 The provision for credit losses was $95.0 million in the first quarter. Of the total, $63 million was allocated for commercial exposure and $32 million for consumer exposure.
 Total net charge-offs in the first quarter were $111 million. Commercial loan net charge-offs were $76 million. Consumer loan net charge-offs were $35 million.
 At March 31, 1992, the corporation's allowance for credit losses was $868 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 3.3 percent of commercial loans. The reserve related to consumer credit was 4.1 percent of consumer loans.
 Total nonperforming loans were $847 million, or 3.4 percent of loans at March 31, 1992. Of these, nonperforming commercial real estate loans were $273 million. Nonperforming loans in the highly-leveraged- transaction portfolio were $153 million. Troubled country debtor nonperforming loans were $149 million.
 At March 31, 1992, the corporation had $486 million of other real estate assets that are carried at the lower of cost or fair market value.
 -0- 4/10/92
 /CONTACT: Lisabeth Weiner (media), 312-732-4455, or Colleen Mulligan (investors), 312-732-4812, both of First Chicago/
 (FNB)
 /FIRST ADD -- TABULAR MATERIAL -- TO FOLLOW/


CO: First Chicago Corp. ST: Illinois IN: FIN SU: ERN

SH -- NY011 -- 7094 04/10/92 09:30 EDT
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Date:Apr 10, 1992
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