Printer Friendly

FIRST SECURITY RATED 19TH IN MIDYEAR 1992 PERFORMANCE

 FIRST SECURITY RATED 19TH IN MIDYEAR 1992 PERFORMANCE
 SALT LAKE CITY, Sept. 22 /PRNewswire/ -- First Security Corp. (NASDAQ: FSCO) ranked 19th in performance midway through 1992 among the top 82 U.S. banking companies included in a study made by American Banker, an industry trade publication. Salt Lake City-based First Security was the highest ranked banking company headquartered in the Intermountain West. Results of the study were published in the Sept. 16 issue of American Banker.
 The study was a composite measure of banking company profitability, asset quality, efficiency and capital strength, and was designed to measure the industry's strength and performance over the first six months of 1992. The study included six key ratios -- return on average assets, noninterest income as a percentage of core revenue, efficiency, nonperforming assets as a percentage of total assets, adjusted reserve ratio and tangible common equity as a percentage of total assets.
 The six ratios, weighted equally, were totaled to give a composite score for each banking company. The companies were then ranked by their composite scores, with the lowest score being best and the highest score being the worst. The scores ranged from 28 to 416, with First Security scoring 181, for 19th place. Total assets of the 82 banking companies at June 30, 1992, ranged from $5.2 billion for Mercantile Bankshares, Baltimore, Md. and The Sumitomo Bank of California, San Francisco, to $219.4 billion for Citicorp, New York City. First Security's assets at midyear totaled $7.3 billion.
 Capital strength, measured by the ratio of tangible common equity to total assets, was Frist Security's strong suit. The corporation's 8.14-percent ratio ranked seventh, with ratios for the 82 banking companies ranging from a low of 0.00 percent to 10.48 percent.
 Because much of its income is generated from interest earned on consumer and mortgage loans, First Security scored least well in the ratio of noninterest income less securities gains to core revenues (net interest income added to noninterest income less securities gains). First Security's ratio of 24.42 percent ranked 64th, with the range for the 82 companies varying between a low of 6.92 percent to a high of 73.59 percent. First Security is the leading consumer and mortgage lender in both Utah and Idaho.
 With an adjusted reserve to loan ratio (the extent to which loss reserves cover loans) of 87.63 percent, First Security ranked 24th among the 82 banking companies, whose ratios ranged from a low of 21.37 percent to a high 5,026.23 percent.
 First Security's ratio of nonperforming assets to total assets of 1.15 percent placed 28th. Ratios of the 82 companies ranged from a low of 0.03 percent to a high of 10.58 percent.
 In terms of efficiency, First Security also placed 28th with a ratio of 63.26 percent. The range for the 82 banking companies varied from an efficient 49.61 percent to the less efficient 133.60 percent. Efficiency is measured by the ratio of noninterest expenses to net interest income added to noninterest income less securities gains. For purposes of the study, noninterest expenses included expenses on foreclosed property but excluded nonrecurring charges.
 With a return on average assets (ROA) of 1.10 percent, First Security ranked 30th in this category. ROAs for the 82 companies ranged from a negative 1.99 percent to a positive 2.48 percent.
 In commenting on the results of the study, American Banker Chicago Bureau Chief, Steve Klinkerman, wrote, "Top-performing banks are in better shape than they were before the recession started. Compared with 1988 -- a banner year when the economy still had some steam and the national realty market had not yet stumbled -- banks in the top tier (the top 27 companies) have better asset quality, beefier loss reserves and improved capitalization. They are more efficient, more profitable and have improved fee income.
 "Banking companies ranking in the top third of the survey went into the recession strong and are coming out of it in excellent condition."
 First Security Corp. is the largest financial services organization headquartered in the Intermountain West. Incorporated in 1928, it is the oldest multistate bank holding company in the United States. Its four banks operate 203 full-service banking offices in Utah, Idaho, Oregon and Wyoming. Other subsidiaries include a leasing company, two insurance companies, an investment management firm, a full-service broker/dealer operation, an information technology company and a foreign exchange trading subsidiary.
 -0- 9/22/92
 /CONTACT: Art Montgomery of First Security, 801-350-5456/
 (FSCO) CO: First Security Corp. ST: Utah IN: FIN SU:


GT-TB -- DV004 -- 2250 09/22/92 14:20 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:Sep 22, 1992
Words:775
Previous Article:WHAT YOU SHOULD KNOW ABOUT BUYING A CELLULAR PHONE
Next Article:CMC HEARTLAND PARTNERS PROMOTES HORNE TO DIRECTOR OF LEASING
Topics:


Related Articles
SOCIETY CORPORATION ANNOUNCES FIRST QUARTER EARNINGS
FIRST UNION ON FITCHALERT NEGATIVE, DOMINION POSITIVE -- FITCH FINANCIAL WIRE --
CRESTAR FINANCIAL SENIOR DEBT RAISED TO 'BBB+' FROM 'BBB' BY FITCH -- FITCH FINANCIAL WIRE --
BANKERS TRUST NEW YORK CORPORATION $100 MILLION CONVERTIBLE CAPITAL NOTES RATED 'A+' BY DUFF & PHELPS
DUFF & PHELPS: CORESTATES CAPITAL CORP $200 MILLION SUBORDINATED NOTES RATED 'A'
FIRST EMPIRE RELEASES 1993 EARNINGS
FIRST VIRGINIA REPORTS RECORD 1993 EARNINGS -- UP 19%
FIRST CHICAGO CORPORATION SERVICING UNIT RATED BY DUFF & PHELPS CREDIT RATING CO.
Federal Home Loan Banks.
Pelican Financial, Inc. Posts Record Q2 and Midyear Net Income; Q2 Earnings Jump 402%.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters