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FIRST CHICAGO REPORTS RECORD NET INCOME OF $179 MILLION

 CHICAGO, April 16 /PRNewswire/ -- First Chicago Corporation (NYSE: FNB) today reported net income of $179.1 million, or $1.97 per common share for the first quarter. This compares with earnings in the first quarter of 1992 of $86.8 million, or $1.08 per share, before the cumulative impact of changes in accounting principles. Earnings for the fourth quarter of 1992 were $136.6 million, or $1.53 per share.
 Excluding venture capital gains, earnings per share for the first quarter were $1.09. On a comparable basis, earnings were 35 cents per share in the 1992 first quarter and 85 cents per share in the fourth quarter.
 Chairman Richard L. Thomas said, "We are extremely pleased with the improving trend of core earnings. Each major business area contributed to this performance: revenues increased nicely; expenses were on target and the burden of credit costs was substantially reduced.
 "This earnings progress was complemented by continued strengthening of the balance sheet. Credit quality ratios for the quarter were excellent and capital ratios improved further," Thomas added.
 First Quarter Highlights
 Equity securities gains were $133 million for the quarter, including $118 million, or 88 cents per share, from the venture capital portfolio.
 The corporation entered into an agreement with GE Capital for the sale from its accelerated disposition portfolio of up to $1 billion in contractual real estate exposure for approximately $500 million. More than half of this asset sale was completed in the quarter, with the remainder expected to close by June 30. After the first six months of the disposition program, the Corporation is far ahead of the "price and pace" goals established for this program.
 Nonperforming assets, excluding the disposition portfolio, declined to $377 million, or 9 percent from year-end 1992. This resulted in a nonperforming asset ratio of 1.7 percent, among the lowest ratios of major U.S. banks.
 Combined commercial credit provisions were $27.5 million, or 75 basis points of related assets -- a significant improvement from 183 basis points a year earlier.
 The net charge-off rate for credit card receivables declined to 3.9 percent from 4.6 percent a year ago, primarily reflecting lower personal bankruptcy filings.
 The corporation strengthened its capital position through the issuance of $200 million in convertible preferred stock. At March 31, the corporation's estimated Tier 1 risk-adjusted capital ratio was 7.7 percent, and its total risk-adjusted ratio was 12.4 percent. These ratios exceed the regulatory guidelines for "well-capitalized" status.
 The corporation completed the bulk sale of approximately $300 million of venture capital investments as part of a strategy to accelerate sales and realize the substantial values in this portfolio. This transaction, which consisted principally of investments in privately-held companies, did not have a material impact on first quarter earnings since gains were previously recognized under fair value accounting.
 Net Interest Income
 For the first quarter, net interest income on a tax-equivalent basis was $305 million. Net interest margin was 2.58 percent for the quarter, and average earning assets were $47.9 billion.
 Adjusted for the effects of credit card securitization and the activity of First Chicago Capital Markets Inc., the corporation's investment banking subsidiary, net interest margin was 3.61 percent. Strong credit card volume during the quarter was a key contributing factor in this performance.
 Noninterest Income
 Total noninterest income was $491 million for the first quarter. Trading activities generated combined profits of $55 million.
 Equity securities gains were $133 million in the first quarter. The venture capital portfolio generated $118 million in appreciation, while the sale of other equity securities contributed $15 million.
 Noninterest Expense
 Noninterest expenses were $434 million for the first quarter, down substantially from the fourth quarter level.
 Credit Quality
 The carrying value of the accelerated disposition portfolio declined to $595 million at March 31, from approximately $1 billion at December 31, primarily reflecting asset sales to GE Capital. The corporation liquidated $789 million of contractual real estate exposure during the first quarter, which resulted in a $442 million reduction in carrying value. The carrying value of the portfolio was 41 percent of original contractual value at March 31, compared with 46 percent at December 31.
 The provision for credit losses declined to $65 million in the first quarter. This included $27 million for commercial credits and $38 million for the consumer portfolio. The provision for other real estate was $0.5 million.
 The corporation's allowance for credit losses was $782 million, representing 223 percent of nonperforming loans at quarter-end.
 Net charge-offs in the first quarter were $74 million. Commercial net charge-offs were $46 million, reflecting gross recoveries of $13 million. Consumer net charge-offs, mainly for the credit card portfolio, were $28 million.
 FIRST CHICAGO CORPORATION AND SUBSIDIARIES
 Comparative Summary
 (Dollars in millions, except per share data)
 Three months ended March 31 1993 1992 Pct. Change
 Net interest income --
 tax-equivalent basis $305.0 $296.2 3
 Combined credit provisions 65.5 118.0 (44)
 Noninterest income 490.5 379.6 29
 Noninterest expense (excluding provision
 for other real estate) 433.6 414.7 5
 Income before cumulative effect of
 changes in accounting principles 179.1 86.8 --
 Cumulative effect of changes in
 accounting principles --
 Valuation of venture capital
 investment securities -- 220.7 --
 Recognition of credit card
 solicitation costs -- (12.7) --
 Net income 179.1 294.8 (39)
 Earnings per share
 Primary
 Income before cumulative effect of
 changes in accounting principles $1.97 $1.08 82
 Cumulative effect of changes in
 accounting principles -- 2.98 --
 Net income 1.97 4.06 (51)
 Average common and common-equivalent
 shares (in millions) 84.1 69.9 20
 Fully diluted
 Income before cumulative effect of
 changes in accounting principles 1.91 1.06 80
 Cumulative effect of changes in
 accounting principles -- 2.85 --
 Net income 1.91 3.91 (51)
 Average shares, assuming full
 dilution (in millions) 88.0 73.1 20
 Average balances
 Loans $22,162 $25,653 (14)
 Earning assets 47,939 46,000 4
 Total assets 55,826 54,075 3
 Common stockholders' equity 2,803 2,637 6
 Stockholders' equity 3,521 3,206 10
 Net interest margin (as a percent) 2.58 2.59 --
 Return on assets 1.30 2.19 (41)
 Return on common stockholders' equity 23.9 43.3 (45)
 At March 31 1993 1992 Pct. Change
 Total assets $48,482 $47,658 2
 Total deposits 27,687 30,926 (10)
 Loans (excluding loans held for
 accelerated disposition) 21,666 24,728 (12)
 Common stockholders' equity 2,888 2,680 8
 Stockholders' equity 3,757 3,249 16
 FIRST CHICAGO CORPORATION AND SUBSIDIARIES
 Consolidated Balance Sheet
 (Dollars in millions)
 March 31 1993 1992
 Assets
 Cash and due from banks --
 noninterest bearing $ 3,398 $ 3,118
 Due from banks--interest bearing 6,193 6,193
 Federal funds sold and securities under resale
 agreements 7,292 4,405
 Trading account assets 3,276 2,866
 Investment securities 2,272 2,304
 Loans 21,666 24,728
 Less Allowance for credit losses 782 868
 Loans, net 20,884 23,860
 Assets held for accelerated disposition 521 --
 Premises and equipment 593 593
 Accrued income receivable 522 751
 Customers' acceptance liability 546 476
 Currency options purchased 549 761
 Other assets 2,436 2,331
 Total assets $48,482 $47,658
 Liabilities
 Deposits
 Demand $ 6,305 $ 5,776
 Savings 7,613 7,983
 Time 5,784 8,346
 Foreign offices 7,985 8,821
 Total deposits 27,687 30,926
 Federal funds purchased and securities under
 repurchase agreements 6,195 5,040
 Commercial paper 217 295
 Other funds borrowed 5,076 3,056
 Long-term debt 1,905 1,833
 Acceptances outstanding 546 476
 Currency options written 522 683
 Other liabilities 2,577 2,100
 Total liabilities 44,725 44,409
 Stockholders' Equity
 Preferred stock -- without par value,
 authorized 15,000,000 869 569
 Common stock -- $5 par value 416 349
 1993 1992
 Number of shares authorized 150,000,000 150,000,000
 Number of shares issued 83,144,528 69,782,282
 Number of shares outstanding 83,046,898 69,761,493
 Surplus 1,612 1,306
 Retained earnings 861 1,024
 Translation adjustments 2 2
 Total 3,760 3,250
 Less Treasury stock at cost 97,630
 shares in 1993 and 20,789 shares
 in 1992 3 1
 Stockholders' equity 3,757 3,249
 Total liabilities and
 stockholders' equity $48,482 $47,658
 -0- 4/16/93
 /CONTACT: Lisabeth Weiner, 312-732-4455, or (investors) Colleen Mulligan, 312-732-4812 or Susan Temple, 312/732-8013, all of First Chicago Corporation/
 (FNB)


CO: First Chicago Corporation ST: Illinois IN: FIN SU: ERN

TS -- NY008 -- 6608 04/16/93 09:01 EDT
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Date:Apr 16, 1993
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