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FIRST NATIONAL BANK CORP. REPORTS RECORD THIRD-QUARTER AND NINE MONTH OPERATING RESULTS

 CLINTON TOWNSHIP, Mich., Oct. 18 /PRNewswire/ -- First National Bank Corp. (NASDAQ-NMS: MTCL) posted record net income for its third quarter, and record operating results for the nine months ended Sept. 30, 1993.
 Quarterly net income was $1,258,000, up 44 percent over $871,000, for the previous year's third quarter. Net income was also 15 percent above last quarter's previous record of $1,093,000. Fully diluted earnings per share reached $0.55 for the three-month period, compared with $0.42 in the prior year. Operating earnings were also at record levels for the first nine months of the year. Year-to-date income before accounting changes rose to $3,370,000, compared with $2,171,000 in 1992. These impressive results were somewhat offset by a first- quarter accounting charge, which held year-to-date net income to $2,187,000. On a fully diluted per-share basis, nine-month income before accounting changes increased to $1.51, versus $1.08 in the prior year. Fully diluted net income was $1.00 per share for the first nine months, compared with $1.18 in 1992.
 Quarterly net interest income increased by $667,000, or 14 percent, to $5,376,000 in 1993, mostly due to a reduction in interest expense of $658,000. The provision for loan and lease loss for both quarters was $225,000, reflecting the healthy nature of the Macomb County area economy.
 Noninterest income for the third quarter increased by $92,000 from the previous year's quarter, to $996,000. This improvement was largely due to a rise in deposit account service charges. Quarterly noninterest expense increased by a modest $110,000, to $4,505,000 in 1993.
 Income before tax for the third quarter was $1,642,000, a remarkable 65-percent increase from $993,000 in the third quarter of 1992. Income tax expense rose from $122,000 in the previous year, to $384,000 for the current quarter. As a result, quarterly after-tax net income was $1,258,000, an increase of more than 44 percent over 1992.
 For the first nine months of 1993, net interest income increased by $2,507,000, or 19 percent over 1992, to 15,796,000. Interest income was relatively unchanged, while interest expense decreased by $2,506,000. The loan loss provision was reduced by $175,000, to $675,000. The corporation's nine-month tax-equivalent net interest margin increased to 5.30 percent, up from 4.88 percent for the same period in 1992.
 Noninterest income for the first nine months decreased by $37,000 from 1992, as reduced security gains offset increases in other areas. The prior-year securities gains were unusually high, as a result of strategic portfolio repositioning. Nine-month noninterest expense rose by $622,000, to $13,649,000 in the current year. The main reasons for the increase were higher payroll and other costs associated with the growth of the corporation and increased advertising costs.
 Year-to-date income before taxes and accounting changes rose to $4,298,000, compared with $2,275,000 in the prior year. Income tax expense was $928,000 in 1993, up from $104,000 for the first nine months of 1992. In spite of the record operating figure, a first-quarter, $1.2 million after-tax accounting charge for postretirement health benefits reduced nine-month net income to $2,187,000, compared with $2,402,000 in 1992. Net income for 1992 included a one-time credit for a change in the accounting method for income taxes.
 Total assets at the close of the quarter stood at 464.8 million, loans outstanding were 325.7 million, and deposits totaled $421.3 million.
 The corporation's vice chairman, president, and CEO, Harold W. Allmacher, noted that the very favorable results reflect the underlying strength of the corporation, its continuing ability to maintain wider net interest margins, and efforts to contain costs. Allmacher said he expects the positive momentum to continue.
 The corporation's wholly owned subsidiary, First National Bank in Macomb County, is preparing to open its 16th branch. The site is located in the Village of Romeo, in northern Macomb County, and will be opened in October.
 First National Bank Corp. is also the parent holding company of Banker's Fund Life Insurance Co.
 The corporation declared a four-for-three stock split in October 1993. The additional shares will be distributed beginning Nov. 24, 1993, to stockholders of record Nov. 3, 1993. After the stock split, the corporation will have approximately 2,309,000 shares of its $3.125 par value common stock issued and outstanding. Per-share amounts for Sept. 30, 1993, and prior periods have been restated to give effect to the stock split.
 FIRST NATIONAL BANK CORP.
 'MTCL' ON THE NASDAQ STOCK MARKET
 SELECTED FINANCIAL HIGHLIGHTS
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 (In thousands, except per-share data)
 Net interest income $5,376 $4,709 $15,796 $13,289
 Provision for loan and
 lease losses $225 $225 $675 $850
 Noninterest income $996 $904 $2,826 $2,863
 Noninterest expense $4,505 $4,395 $13,649 $13,027
 Income tax expense $384 $122 $928 $104
 Income before cumulative
 effects of changes in
 accounting principles $1,258 $871 $3,370 $2,171
 Cumulative effects of
 changes in accounting
 principles --- --- ($1,183) $231
 Net income $1,258 $871 $2,187 $2,402
 Fully diluted income per
 share before cumulative
 effects of changes in
 accounting principles $0.55 $0.42 $1.51 $1.08
 Fully diluted net income
 per share $0.55 $0.42 $1.00 $1.18
 Dividends per share $0.19 $0.18 $0.55 $0.53
 As of Sept. 30
 1993 1992
 (In thousands, except per-share data)
 Total assets $464,768 $442,834
 Total loans & leases $325,688 $299,657
 Total deposits $421,335 $397,346
 Total common stockholders' equity $36,350 $29,106
 Book Value Per Share $15.74 $16.31
 -0- 10/18/93
 /CONTACT: Richard J. Miller of First National Bank Corp., 313-307-8140/
 (MTCL)


CO: First National Bank Corp. ST: Michigan IN: FIN SU: ERN

KE-MK -- DE016 -- 3353 10/18/93 11:34 EDT
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Date:Oct 18, 1993
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