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FIRST EMPIRE RELEASES FIRST QUARTER EARNINGS

 BUFFALO, N.Y., April 20 /PRNewswire/ -- First Empire State Corporation ("First Empire") (AMEX: FES) today announced earnings of $24.3 million, or $3.31 per common share, for the first quarter of 1993. Excluding the after-tax effect of gains recognized from securities transactions of $458,000, net income was $23.9 million or $3.25 per common share. For the first three months of 1992 net income was $27.5 million or $3.81 per common share including net after-tax securities gains, and $19.0 million or $2.59 per common share excluding such gains. Excluding the effects of securities transactions, net income in the initial 1993 quarter increased 25 percent or $4.9 million and $.66 per common share from 1992's first quarter.
 Taxable-equivalent net interest income in 1993's initial quarter reached $116.4 million, up 13 percent from $103.4 million in 1992's comparable quarter. An 11 percent growth in average earning assets and a wider spread between the yield on earning assets and the rate paid on interest-bearing liabilities were the main factors in this increase. Average earning assets totaled $9.5 billion in 1993's first quarter, compared with $8.6 billion in the initial quarter of 1992. The growth in earning assets stemmed in large part from the July 1992 acquisitions of Central Trust Company of Rochester, New York ("Central Trust") and Endicott Trust Company of Endicott, New York ("Endicott Trust"), which were merged with and into First Empire's principal banking subsidiary, Manufacturers and Traders Trust Company ("M&T Bank"). Net interest income expressed as an annualized percentage of average earning assets was 4.95 percent in the recent quarter, compared with 4.84 percent in the first quarter of 1992.
 The quarter's provision for possible credit losses was $18.3 million, compared with $17.7 million in 1992's first quarter. The provision, which exceeded net charge-offs by $10.1 million, boosted the allowance for possible credit losses to $161.8 million or 2.35 percent of total loans at March 31, 1993. The allowance at the end of 1992's first quarter amounted to $110.5 million or 1.85 percent of total loans. Net charge-offs totaled $8.2 million in the recent quarter compared with $7.5 million in the comparable 1992 period. Nonperforming loans of $109.8 million at March 31, 1993 were lower than the $113.6 million at the end of 1992 but, predominantly due to loans acquired in the 1992 acquisitions, higher than the $94.2 million at March 31, 1992. The ratio of the allowance for possible credit losses to nonperforming loans at March 31, 1993 was 147 percent, up from 117 percent a year earlier and 134 percent at December 31, 1992. Assets taken in foreclosures of defaulted loans totaled $16.6 million, as compared to $11.8 million at March 31, 1992 and $16.7 million at the end of 1992.
 Exclusive of pre-tax gains from bank investment securities transactions of $0.8 million and $14.4 million in the first quarters of 1993 and 1992, respectively, other income of $27.8 million in 1993's initial quarter was $4.5 million or 20 percent higher than the corresponding period in 1992. Other expense totaled $85.0 million in the recent quarter, up 13 percent from 1992's first quarter. The mid- 1992 acquisitions of Central Trust and Endicott Trust contributed significantly to the year-to-year increases.
 Exclusive of securities transactions, the annualized rates of return on average total assets and average common stockholders' equity in the recent quarter were .97 percent and 15.57 percent, respectively. On a comparable basis, the return on assets and common stockholders' equity in 1992's first quarter were .85 percent and 14.24 percent, respectively.
 First Empire had total assets of $10.4 billion at March 31, 1993, up from $9.0 billion a year earlier. Primarily as a result of the 1992 acquisitions, both total loans and total deposits were higher at the recent quarter's end than at March 31, 1992. Loans and leases, net of unearned discount, rose to $6.9 billion from $6.0 billion at March 31, 1992, but fell $96.9 million from the 1992 year-end. Deposits increased 9 percent from a year earlier, to $7.8 billion at the recent quarter's end, but decreased from $8.1 billion at December 31, 1992. Total stockholders' equity increased to $649.1 million at March 31, 1993, from $560.4 million a year earlier and $626.8 million at the end of 1992. Common stockholders' equity was $88.68 per share at March 31, 1993, an increase of 15 percent from $77.40 at March 31, 1992 and 3 percent from $85.79 at December 31, 1992.
 First Empire State Corporation is a bank holding company whose subsidiaries include M&T Bank (Buffalo, New York) and The East New York Savings Bank (New York City, New York).
 FIRST EMPIRE STATE CORPORATION
 Condensed Consolidated Statement of Income
 Three months ended
 Dollars in thousands, March 31
 except per share 1993 1992 Change
 Net interest income $115,405 101,743 13 pct
 Less: Provision for
 possible credit losses 18,315 17,718 3
 Gains (losses) on sales of bank
 investment securities 823 14,370 (94)
 Other income 27,828 23,281 20
 Less:
 Salaries & employee benefits 41,082 31,144 32
 Other expenses 43,886 43,879 ---
 Income before income taxes 40,773 46,653 (13)
 Applicable income taxes 16,451 19,115 (14)
 Net income $24,322 27,538 (12)
 Dividends on preferred stock $900 900
 Per common share:
 Net income
 Primary $3.31 3.81 (13)
 Fully diluted 3.21 3.66 (12)
 Net income excluding securities
 transactions
 Primary 3.25 2.59 25
 Fully diluted 3.15 2.53 25
 Cash dividends 0.40 0.40 ---
 Common shares outstanding
 in thousands:
 Average (A) 7,069 7,000 1
 Period end 6,869 6,724 2
 PERFORMANCE RATIOS, annualized
 Net income to:
 Average total assets 0.99 pct 1.24 pct
 Average common stockholders' equity 15.88 pct 20.92 pct
 Yield on average earning assets (B) 7.85 pct 8.95 pct
 Cost of interest-bearing liabilities 3.35 pct 4.62 pct
 Net interest spread (B) 4.50 pct 4.33 pct
 Contribution of interest-free funds 0.45 pct 0.51 pct
 Net interest margin (B) 4.95 pct 4.84 pct
 (A) -- Includes common stock equivalents
 (B) -- On a fully taxable-equivalent basis
 FIRST EMPIRE STATE CORPORATION
 Condensed Consolidated Balance Sheet
 March 31
 In thousands 1993 1992 Change
 ASSETS
 Cash and due from banks $396,550 239,907 65 pct
 Money-market ass ? 1,282,153 405,937 216
 Investment securities 1,725,822 2,277,590 (24)
 Loans and leases, net of
 unearned discount 6,886,898 5,971,660 15
 Less: Allowance for possible
 credit losses 161,810 110,495 46
 Net loans and leases 6,725,088 5,861,165 15
 Other assets 293,393 234,135 25
 Total assets $10,423,006 9,018,734 16 pct
 LIABILITIES AND EQUITY
 Demand deposits in U.S. offices $983,223 624,891 57 pct
 Other deposits in U.S. offices 6,692,857 6,405,021 4
 Deposits in foreign offices 111,584 135,929 (18)
 Total deposits 7,787,664 7,165,841 9
 Short-term borrowings 1,774,710 1,149,479 54
 Accrued interest and other
 liabilities 135,840 140,738 (3)
 Long-term borrowings and capital
 leases 75,662 2,256 --
 Total liabilities 9,773,876 8,458,314 16
 Stockholders' equity 649,130 560,420 16
 Total liabilities and
 stockholders' equity $10,423,006 9,018,734 16 pct
 FIRST EMPIRE STATE CORPORATION
 Condensed Consolidated Average Balance Sheet
 Three months ended
 March 31
 In thousands 1993 1992 Change
 ASSETS
 Money-market assets $915,258 223,809 309 pct
 Investment securities 1,712,887 2,352,479 (27)
 Loans and leases, net of
 unearned discount 6,899,128 6,013,933 15
 Total earning assets 9,527,273 8,590,221 11
 Other assets 423,419 375,519 13
 Total assets $9,950,692 8,965,740 11 pct
 LIABILITIES AND EQUITY
 Interest-Bearing Deposits $6,914,347 6,625,754 4 pct
 Borrowings 1,325,231 1,019,019 30
 Total interest-bearing
 liabilities 8,239,578 7,644,773 8
 Demand deposits 941,899 622,922 51
 Other liabilities 130,883 145,797 (10)
 Total liabilities 9,312,360 8,413,492 11
 Preferred stockholders' equity 40,000 40,000 ---
 Common stockholders' eq8?,332 512,248 17
 Total stockholders' equity 638,332 552,248 16
 Total liabilities and
 stockholders' equity $9,950,692 8,965,740 11 pct
 -0- 4/20/93
 /CONTACT: Gary S. Paul of First Empire State Corporation, 716-842-5130/
 (FES)


CO: First Empire State Corporation ST: New York IN: FIN SU: ERN

BM -- CL008 -- 7819 04/20/93 09:07 EDT
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Date:Apr 20, 1993
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