Printer Friendly

FIRST FIDELITY EARNINGS GROW TO $76.3 MILLION, UP 46.7 PERCENT FROM SECOND QUARTER LAST YEAR

 FIRST FIDELITY EARNINGS GROW TO $76.3 MILLION,
 UP 46.7 PERCENT FROM SECOND QUARTER LAST YEAR
 LAWRENCEVILLE, N.J., July 14 /PRNewswire/ -- First Fidelity Bancorporation (NYSE: FFB) today reported second quarter 1992 earnings of $76.3 million, up 16.6 percent from first quarter 1992 earnings of $65.5 million and up 46.7 percent from second quarter 1991 earnings of $52 million.
 Earnings per share on a fully diluted basis were $.93 in the second quarter of 1992, compared to $.81 per share in the first quarter of 1992 and $.80 in the second quarter of 1991.
 The principal factors contributing to the earnings improvement in the second quarter over the year's first quarter were a rise in the net interest margin to 4.59 percent from 4.33 percent, an increase of $3.4 million or 10.8 percent in income from service fees on deposit accounts and flat non-interest expense.
 Return on average assets rose to 1.06 percent in the second quarter from 0.90 percent in the first quarter of 1992. Return on average common stockholders' equity increased to 16.10 percent in the second quarter from 13.97 percent in the year's first quarter.
 During the quarter, non-performing loans declined by $60 million. The credit loss reserve coverage of non-performing loans rose to 101 percent at June 30, 1992, from 92 percent at the end of the first quarter. The total risk-adjusted capital ratio was an estimated 13.14 percent at June 30, 1992.
 Tony Terracciano, chairman and chief executive officer, said, "Earnings are beginning to reflect the benefits of the core franchise and the recent positive trend in asset quality. We are especially pleased that the stability in expenses, complemented by rising income, has resulted in a 57.4 percent efficiency ratio. Since the economy and loan demand have remained sluggish, however, a disciplined approach to expense management and asset quality remains crucial."
 During the second quarter, the company acquired five American Savings Bank offices in Westchester County and Riverdale, N.Y., with approximately $335 million of deposits in some 28,000 accounts from the Federal Deposit Insurance Corporation, acting as receiver. The offices are an extension of the bank's consumer and small-business franchise in the greater New York-New Jersey metropolitan area.
 Net Interest Income
 Taxable equivalent net interest income increased to $307.2 million for the 1992 second quarter, up $12.7 million from the $294.5 million posted in the first quarter of 1992 and up $31.4 million from the $275.8 million earned in the prior year's second quarter.
 The net interest margin rose significantly during the quarter to 4.59 percent from 4.33 percent in the first quarter of 1992 and 4.22 percent in the second quarter of 1991. In addition to favorable market conditions, this increase reflected the declining cost of the bank's large core deposit base as well as the relative shift in the loan portfolio from lower yielding commercial loans to higher earning consumer loans. For the quarter, consumer loans averaged 45 percent of total loans compared to 44 percent of total loans during the first quarter of 1992 and 41 percent in the prior year's second quarter.
 Average earning assets in the 1992 second quarter of $26.6 billion were modestly lower than average earning assets of $26.9 billion during the first quarter of 1992 and up from $25.9 billion in the second quarter of 1991. Demand for shelter loans, both first mortgages and home equity loans, remained strong. Auto lease outstandings continued to grow while auto loans declined. Because of the continued weak business climate, commercial loans outstanding continued to trend lower during the second quarter.
 Core deposits (demand deposits and other consumer deposits) averaged $23.6 billion in the second quarter of 1992, down from $24 billion in the first quarter of 1992 and up from $22.9 billion in the second quarter of 1991, with the year-to-year increase largely reflecting acquisitions in the past year. In the quarter, demand deposits, NOW accounts and money market accounts performed well while the industry- wide switch by consumers from certificates of deposit to alternative investments significantly reduced CD liabilities outstanding.
 Non-Interest Income
 Non-interest income excluding net securities transactions rose in the second quarter of 1992 to $81.1 million, up from $78.2 million in the first quarter of 1992 and $75.4 million in the second quarter of 1991.
 Service fees on deposit accounts increased to $34.6 million in the second quarter of 1992 from $31.3 million in the first quarter of 1992, and from $29.3 million in the second quarter of 1991. This gain reflected both significant growth in the account base and service fee adjustments effected at the beginning of the second quarter. Securities dealing results benefited from the municipal markets' large volume of new issues and from increased customer demand for securities. Trust income was $21.2 million in the second quarter of 1992 compared to $21.9 million in the first quarter of 1992 and $20.4 million in the prior year's second quarter.
 Second quarter 1992 non-interest income included $1.1 million in net securities gains compared to $3.8 million in the first quarter of 1992 and $7.2 million in the second quarter of 1991.
 Non-Interest Expense
 Second quarter 1992 non-interest expense totaled $223.4 million, essentially unchanged from the previous quarter's level and only four percent higher than the expense for the second quarter of 1991. The incremental operating expenses of banks acquired during 1991 and premium increases by the Federal Deposit Insurance Corporation accounted for virtually all of the year-over-year increase.
 Salaries and benefits expense for the second quarter of 1992 was $99.8 million, unchanged from the first quarter of 1992. In the second quarter of 1992, equipment expense was $10.2 million and occupancy expense totaled $26.7 million compared to $10.1 million and $27.6 million, respectively, in the first quarter of 1992. Other expenses in the second quarter increased to $86.7 million from $85.7 million in the first quarter of 1992, primarily reflecting a $0.8 million increase in OREO-related expenses.
 The efficiency ratio -- the relationship between non-interest expense and taxable equivalent operating income -- improved to 57.4 percent for the second quarter of 1992 from 59.3 percent for the first quarter of 1992.
 Asset Quality
 Non-performing loans declined $60.1 million or 9.1 percent during the quarter and totaled $596.7 million at June 30, 1992, down from $656.8 million at March 31, 1992, and $803.0 million at the end of the second quarter 1991.
 The provision for possible credit losses was $59 million for the second quarter, down from $61 million for the previous quarter and $65 million for the second quarter of 1991. At June 30, the reserve for possible credit losses totaled $602.0 million, compared to $607.3 million at March 31, 1992, and $607.5 million at June 30, 1991, and represented 3.50 percent of loans. The reserve coverage -- the ratio of the credit loss reserve to non-performing loans -- rose to 101 percent from 92 percent at March 31, 1992, and from 76 percent at June 30, 1991.
 Net charge-offs in the second quarter were $64.2 million, compared to net charge-offs of $63.3 million in the first quarter and net charge- offs of $71.3 million in the prior year's comparable period.
 During the quarter, non-performing assets declined 6.8 percent or $58.9 million to $809.7 million, down from $868.7 million at March 31, 1992, and from $984.1 million at June 30, 1991. OREO (other real estate owned), net of the OREO reserve, totaled $213 million at June 30, 1992, compared to $211.9 million at March 31, 1992, and $181.1 million at June 30, 1991. The OREO total consisted of $144.8 million in actually foreclosed properties and $74.2 million of in-substance foreclosures, less a reserve of $6 million.
 Contractually past-due loans declined in the quarter by $18.6 million or 13.1 percent and stood at $123.2 million at June 30, 1992, compared to $141.8 million at March 31, 1992, and $98.7 million at June 30, 1991.
 Balance Sheet and Capital
 At June 30, 1992, First Fidelity had total assets of $29.3 billion, essentially unchanged from March 31, 1992, and compared with $28.8 billion at June 30, 1991. Total deposits were $24.1 billion, compared with $24.4 billion at both March 31, 1992, and June 30, 1991. Loans totaled $17.2 billion, essentially unchanged from the March 31, 1992 level and down modestly from $17.6 billion at June 30, 1991.
 At June 30, 1992, the Tier I leverage ratio was 6.46 percent, up from 6.14 percent at March 31, 1992, and 4.78 percent at June 30, 1991. The risk-adjusted Tier I capital ratio was approximately 9.65 percent and the total risk-adjusted capital ratio was approximately 13.14 percent at June 30, 1992, compared to 9.28 percent and 13.19 percent, respectively, at March 31, 1992, and 6.63 percent and 10.42 percent, respectively, at June 30, 1991.
 First Fidelity is the largest banking organization headquartered in New Jersey. With more than 500 branches in eastern Pennsylvania, New Jersey and New York, its principal affiliates are the First Fidelity banks in New Jersey and New York, Fidelity Bank of Philadelphia, Merchants Bank of Allentown, Pennsylvania, and Merchants Bank (North) of Wilkes-Barre, Pa.
 FIRST FIDELITY BANCORPORATION AND SUBSIDIARIES
 Financial Summary
 (In thousands, except per share)
 At period end June 30 June 30 March 31
 1992 1991 1992
 Assets $29,332,224 $28,817,959 $29,177,667
 Deposits 24,107,533 24,364,688 24,397,630
 Loans 17,209,180 17,577,101 17,259,262
 Reserve for possible
 credit losses 602,024 607,487 607,255
 Stockholders' equity 2,060,992 1,565,378 1,999,373
 Reserve for possible
 credit losses/loans(pct.) 3.50 3.46 3.52
 Tier I leverage ratio(pct.) 6.46 4.78 6.14
 Tier I capital/risk adjusted
 assets(pct.) (A) 9.65 6.63 9.28
 Total risk-based capital/risk
 adjusted assets(pct.) (A) 13.14 10.42 13.19
 Per common share:
 Book value $25.72 $23.38 $24.97
 Market price 37.88 27.25 35.13
 For the three months June 30 June 30 March 31
 ended 1992 1991 1992
 Net income $76,344 $52,029 $65,461
 Per common share:
 Net income - primary $.95 $.81 $.82
 Net income - fully diluted .93 .80 .81
 Return on average assets(pct.) 1.06 .74 .90
 Return on average
 stockholders' equity(pct.) 15.29 13.39 13.40
 Return on average common
 stockholders' equity(pct.) 16.10 13.94 13.97
 For the six months June 30 June 30
 ended 1992 1991
 Net income $141,805 $108,098
 Per common share:
 Net income - primary $1.77 $1.69
 Net income - fully diluted 1.73 1.67
 Return on average assets(pct.) .98 .77
 Return on average
 stockholders' equity(pct.) 14.32 14.15
 Return on average common
 stockholders' equity(pct.) 15.01 14.78
 Average common shares and
 common stock equivalents
 outstanding:
 Primary 74,161,832 59,882,941
 Fully diluted 78,714,033 63,895,544
 (A) June 30, 1992, ratios are estimated.
 Consolidated Statements of Income
 (thousands)
 Three months ended Increase/
 June 30 1992 1991 (Decrease)
 Interest income:
 Interest and fees
 on loans $375,695 $426,595 ($50,900)
 Interest on federal funds
 sold and securities
 purchased under
 agreements to resell 8,905 14,778 (5,873)
 Interest and dividends on
 investment securities:
 Taxable interest income 102,639 111,025 (8,386)
 Tax-exempt interest income 14,935 17,049 (2,114)
 Dividends 1,030 925 105
 Interest on bank deposits 24,402 23,345 1,057
 Interest on trading
 account securities 1,917 2,179 (262)
 Total interest income 529,523 595,896 (66,373)
 Interest expense:
 Interest on:
 Deposits 206,294 294,538 (88,244)
 Short-term borrowings 11,361 17,018 (5,657)
 Long-term debt 15,021 20,724 (5,703)
 Total interest expense 232,676 332,280 (99,604)
 Net interest income 296,847 263,616 33,231
 Provision for possible
 credit losses 59,000 65,000 (6,000)
 Net interest income after
 provision for possible
 credit losses 237,847 198,616 39,231
 Non-interest income:
 Trust income 21,193 20,416 777
 Service charges on deposit
 accounts 34,627 29,344 5,283
 Other service charges,
 commissions and fees 18,794 20,796 (2,002)
 Net trading account gains 3,427 1,075 2,352
 Net securities transactions 1,132 7,197 (6,065)
 Other income 3,037 3,750 (713)
 Total non-interest income 82,210 82,578 (368)
 Non-interest expense:
 Salaries and benefits
 expense 99,805 99,858 (53)
 Occupancy expense 26,730 25,452 1,278
 Equipment expense 10,166 10,894 (728)
 Other expenses 86,718 78,286 8,432
 Total non-interest expense 223,419 214,490 8,929
 Income before income taxes 96,638 66,704 29,934
 Income taxes 20,294 14,675 5,619
 Net income 76,344 52,029 24,315
 Dividends on preferred stock 5,288 3,328 1,960
 Net income applicable
 to common stock 71,056 48,701 22,355
 Per common share:
 Net income:
 Primary $.95 $.81 $.14
 Fully diluted .93 .80 .13
 Consolidated Statements of Income
 (thousands)
 Three months ended June 30 March 31 Increase/
 1992 1992 (Decrease)
 Interest income:
 Interest and fees
 on loans $375,695 $383,617 ($7,922)
 Interest on federal funds
 sold and securities
 purchased under
 agreements to resell 8,905 7,863 1,042
 Interest and dividends on
 investment securities:
 Taxable interest income 102,639 108,064 (5,425)
 Tax-exempt interest income 14,935 15,165 (230)
 Dividends 1,030 956 74
 Interest on bank deposits 24,402 31,949 (7,547)
 Interest on trading
 account securities 1,917 1,671 246
 Total interest income 529,523 549,285 (19,762)
 Interest expense:
 Interest on:
 Deposits 206,294 237,612 (31,318)
 Short-term borrowings 11,361 11,506 (145)
 Long-term debt 15,021 16,123 (1,102)
 Total interest expense 232,676 265,241 (32,565)
 Net interest income 296,847 284,044 12,803
 Provision for possible
 credit losses 59,000 61,000 (2,000)
 Net interest income after
 provision for possible
 credit losses 237,847 223,044 14,803
 Non-interest income:
 Trust income 21,193 21,932 (739)
 Service charges on deposit
 accounts 34,627 31,259 3,368
 Other service charges,
 commissions and fees 18,794 19,231 (437)
 Net trading account gains 3,427 3,142 285
 Net securities transactions 1,132 3,767 (2,635)
 Other income 3,037 2,679 358
 Total non-interest income 82,210 82,010 200
 Non-interest expense:
 Salaries and benefits
 expense 99,805 99,826 (21)
 Occupancy expense 26,730 27,593 (863)
 Equipment expense 10,166 10,067 99
 Other expenses 86,718 85,741 977
 Total non-interest expense 223,419 223,227 192
 Income before income taxes 96,638 81,827 14,811
 Income taxes 20,294 16,366 3,928
 Net income 76,344 65,461 10,883
 Dividends on preferred stock 5,288 5,271 17
 Net income applicable
 to common stock 71,056 60,190 10,866
 Per common share:
 Net income:
 Primary $.95 $.82 $.13
 Fully diluted .93 .81 .12
 Consolidated Statements of Income
 (thousands)
 Six months ended Increase/
 June 30 1992 1991 (Decrease)
 Interest income:
 Interest and fees
 on loans $759,312 $866,637 ($107,325)
 Interest on federal funds
 sold and securities
 purchased under
 agreements to resell 16,768 27,662 (10,894)
 Interest and dividends on
 investment securities:
 Taxable interest income 210,703 232,767 (22,064)
 Tax-exempt interest income 30,100 34,567 (4,467)
 Dividends 1,986 1,857 129
 Interest on bank deposits 56,351 44,875 11,476
 Interest on trading
 account securities 3,588 3,866 (278)
 Total interest income 1,078,808 1,212,231 (133,423)
 Interest expense:
 Interest on:
 Deposits 443,906 618,077 (174,171)
 Short-term borrowings 22,867 38,835 (15,968)
 Long-term debt 31,144 43,817 (12,673)
 Total interest expense 497,917 700,729 (202,812)
 Net interest income 580,891 511,502 69,389
 Provision for possible
 credit losses 120,000 150,000 (30,000)
 Net interest income after
 provision for possible
 credit losses 460,891 361,502 99,389
 Non-interest income:
 Trust income 43,125 40,609 2,516
 Service charges on deposit
 accounts 65,886 56,447 9,439
 Other service charges,
 commissions and fees 38,025 40,622 (2,597)
 Net trading account gains 6,569 2,956 3,613
 Net securities transactions 4,899 22,422 (17,523)
 Other income 5,716 40,077 (34,361)
 Total non-interest income 164,220 203,133 (38,913)
 Non-interest expense:
 Salaries and benefits
 expense 199,631 196,592 3,039
 Occupancy expense 54,323 51,360 2,963
 Equipment expense 20,233 21,309 (1,076)
 Other expenses 172,459 156,787 15,672
 Total non-interest expense 446,646 426,048 20,598
 Income before income taxes 178,465 138,587 39,878
 Income taxes 36,660 30,489 6,171
 Net income 141,805 108,098 33,707
 Dividends on preferred stock 10,559 6,648 3,911
 Net income applicable
 to common stock 131,246 101,450 29,796
 Per common share:
 Net income:
 Primary $1.77 $1.69 $.08
 Fully diluted 1.73 1.67 .06
 Consolidated Statements of Condition
 (thousands)
 June 30 1992 1991
 Assets:
 Cash and due from banks $1,654,692 $1,649,884
 Interest bearing time deposits 1,977,521 1,580,713
 Investment securities (market
 value of $6,458,252 at June 30,
 1992, and $5,845,474 at
 June 30, 1991 6,276,710 5,817,412
 Trading account securities
 at market value 137,823 107,589
 Federal funds sold and securities
 purchased under agreements to
 resell 1,268,700 1,164,569
 Loans, net of unearned income 17,209,180 17,577,101
 Reserve for possible credit losses (602,024) (607,487)
 Premises and equipment 302,635 337,159
 Customers' acceptance liability 152,515 198,691
 Other assets 954,472 992,328
 Total assets 29,332,224 28,817,959
 Liabilities:
 Deposits in domestic offices:
 Demand deposits (non-interest
 bearing) 4,486,333 4,248,330
 Savings/NOW deposits 6,680,908 5,433,021
 Money market deposit accounts 3,708,240 3,892,771
 Other consumer time deposits 8,621,537 9,945,072
 Corporate certificates of deposit 385,139 593,932
 Deposits in overseas offices 225,376 251,562
 Total deposits 24,107,533 24,364,688
 Short-term borrowings 1,955,207 1,276,908
 Acceptances outstanding 155,228 200,261
 Other liabilities 406,284 479,634
 Long-term debt 646,980 931,090
 Total liabilities 27,271,232 27,252,581
 Stockholders' equity:
 Preferred stock 232,236 157,249
 Common stock ($1 par)
 Authorized: 150 million shares
 Issued and outstanding:
 71,110,116 shares at June 30, 1992;
 60,220,412 shares at June 30, 1991 71,110 60,220
 Surplus 939,026 693,870
 Retained earnings 818,620 654,039
 Total common stockholders' equity 1,828,756 1,408,129
 Total stockholders' equity 2,060,992 1,565,378


sets and Contractually Past Due Loans
 (thousands)
 1992 Domestic:
 Real estate $288,119 $311,175 $324,318 $348,655 $346,576
 Other 299,379 299,511 321,190 419,350 447,988
 Foreign 3,927 5,436 10,212 9,975 7,034
 Restructured
 loans 5,301 40,674 60,786 1,391 1,388
 Total non-performing
 loans 596,726 656,796 716,506 779,371 802,986
 Other real estate
 owned:
 Foreclosed
 property 144,776 94,312 79,384 70,567 64,619
 In-substance
 foreclosures 74,240 123,527 140,339 131,906 126,631
 Total other
 real estate
 owned 219,016 217,839 219,723 202,473 191,250
 Less reserve (6,016) (5,978) (7,306) (10,004) (10,114)
 Net other
 real estate
 owned 213,000 211,861 212,417 192,469 181,136
 Total non-performing
 assets 809,726 868,657 928,923 971,840 984,122
 Contractually past due
 loans:
 Consumer 113,177 130,747 134,720 89,867 79,432
 Other 9,987 11,005 10,686 28,451 19,249
 Total contractually
 past due
 loans (A) 123,164 141,752 145,406 118,318 98,681
 Non-performing loans
 /loans (pct.) 3.47 3.81 4.13 4.44 4.57
 Non-performing
 assets/loans and
 other real estate
 owned 4.65 4.97 5.29 5.47 5.54
 (A) Accruing loans past due 90 days or more.
 Reconciliation of Reserve for Possible Credit Losses
 (thousands)
 Periods ended Three Months Six Months
 June 30 1992 1991 1992 1991
 Beginning balance $607,255 $564,385 $609,599 $556,172
 Provision 59,000 65,000 120,000 150,000
 Total 666,255 629,385 729,599 706,172
 Charge-offs 75,167 81,658 151,256 156,137
 Recoveries 10,936 10,360 23,681 18,852
 Net charge-offs 64,231 71,298 127,575 137,285
 Balance related to
 sale of subsidiary --- --- --- (10,800)
 Acquired reserves --- 49,400 --- 49,400
 Ending balance 602,024 607,487 602,024 607,487
 Ratios:
 Net charge-offs as a
 percent of average
 loans (annualized) 1.50 1.64 1.49 1.57
 Reserve as a percent of
 loans 3.50 3.46 3.50 3.46
 Reserve as a percent of
 non-performing loans 101 76 101 76
 /delval/
 -0- 7/14/92
 /CONTACT: Paul J. Levine, 201-565-2949, or Laura A. Schaible


(analysts), 201-565-3397, both of First Fidelity Bancorporation/
 (FFB) CO: First Fidelity Bancorporation ST: New Jersey IN: FIN SU: ERN


MP-MK -- PH007 -- 9076 07/14/92 12:02 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 14, 1992
Words:3670
Previous Article:NUCLEAR METALS, INC. TO CONDUCT ENVIRONMENTAL REMEDIATION PROGRAM
Next Article:RUSSIAN WIND TUNNEL TESTS FOR BOEING PROVE SUCCESSFUL
Topics:


Related Articles
CENTRAL FIDELITY ANNOUNCES INCREASED EARNINGS
FIRST FIDELITY REPORTS QUARTERLY EARNINGS OF $82.3 MILLION, AN INCREASE OF 48.8 PERCENT FROM THIRD QUARTER OF LAST YEAR
CENTRAL FIDELITY REPORTS RECORD FIRST QUARTER EARNINGS
NATIONSBANK CORPORATION ANNOUNCES FIRST QUARTER EARNINGS
FIRST FIDELITY EARNS $1.13 PER SHARE IN SECOND QUARTER, UP 21.5 PERCENT FROM PRIOR YEAR'S PERIOD
CENTRAL FIDELITY REPORTS RECORD EARNINGS
FIRST FIDELITY REPORTS RECORD QUARTERLY EARNINGS OF $108.9 MILLION, UP 17.5 PERCENT FROM $92.6 MILLION EARNED IN FIRST QUARTER OF 1993
FIDELITY BANCORP ANNOUNCES FIRST QUARTER EARNINGS, DIVIDEND
Fidelity Bancorp Reports 30 Percent Increase in First Quarter Earnings Dividend Increased 33 Percent
Fidelity Bancorp Reports Second Quarter Net Income Up 27 Percent

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters