Printer Friendly

FIRST UNION EARNINGS RISE 22 PERCENT IN 3RD QUARTER 1993

 CHARLOTTE, N.C., Oct. 14 /PRNewswire/ -- First Union Corporation (NYSE: FTU FTUpr) today reported earnings applicable to common stockholders in the third quarter of 1993 of $189 million, a 22 percent increase from $155 million in the same period a year ago.
 Net income applicable to common stockholders was $1.12 per common share in the third quarter of 1993, compared with 96 cents in the same period a year ago.
 In the first nine months of 1993, net income applicable to common stockholders increased 76 percent to $603 million, or a $3.61 per common share, compared with $343 million, or $2.18, in the first nine months of 1992.
 All of last year's financial data have been restated for the pooling of interests accounting acquisitions of South Carolina Federal Corp. and DFSoutheastern, Inc., on January 15, 1993, and Dominion Bankshares Corp. on March 1, 1993.
 "We've seen exceptional performance from our people in reducing credit-related costs and improving basic earnings," said Edward E. Crutchfield Jr., First Union Corporation chairman and chief executive officer. "We are very pleased with our fundamental trends, especially in light of absorbing additional mortgage servicing amortization related to heavy refinancing activity.
 "These results also reflect good progress in reducing both our nonperforming assets and our segregated assets portfolios."
 First Union's third quarter 1993 results included an 11 percent increase in net interest income on a tax-equivalent basis. The net interest margin was 4.65 percent in the third quarter of 1993, compared with 4.89 percent in the third quarter a year ago. The margin change reflects the addition of acquired banks with lower margins; the addition of short-term securities, which contribute to net interest income although they reduce the margin; and the impact of refinancing activity.
 Key factors in third quarter 1993 results were a decline in credit- related costs, offset by $30 million in additional mortgage servicing amortization and the effects from the second quarter 1993 acquisitions of Georgia Federal Bank, FSB, and First American Metro Corp.
 Credit quality continued to strengthen during the third quarter. Annualized net charge-offs as a percentage of average net loans were .50 percent in the third quarter of 1993, the lowest charge-off ratio since the beginning of the recession in 1990. This compares with .81 percent in the third quarter a year ago. As a result, the loan loss provision also declined to $50 million for the third quarter of 1993, compared with $83 million in the third quarter a year ago.
 Nonperforming assets declined to $1.210 billion, or 2.60 percent of net loans and foreclosed properties, at September 30, 1993, compared with $1.411 billion, or 3.39 percent, in the third quarter a year ago. In addition, the segregated assets portfolio resulting from the Southeast Banks acquisition in 1991 declined to $425 million at September 30, 1993, compared with $635 million in the same period a year ago. The First American segregated assets portfolio, acquired in the second quarter this year, declined to a net amount of $202 million, compared with $288 million at June 30, 1993. First Union's loan loss allowance was $1.029 billion at September 30, 1993, compared with $933 million a year ago.
 Net loans at September 30, 1993, were $46.2 billion, compared with $41.2 billion at September 30, 1992. Loan growth reflected loan portfolios acquired in the second quarter of 1993 with the Georgia Federal and First American transactions, and increased lending activity, particularly in North Carolina and Florida.
 Deposits were $52.9 billion compared with $47.3 billion a year ago, primarily reflecting deposits acquired through the second quarter acquisitions. Total stockholders' equity was $5.06 billion at September 30, 1993, a 15 percent increase from September 30, 1992.
 At September 30, 1993, First Union Corporation had assets of $71.4 billion and operated 1,373 banking offices in Florida, North Carolina, South Carolina, Georgia, Virginia, Tennessee, Maryland and Washington, D.C., and 218 nonbanking offices in 36 states.
 FIRST UNION CORPORATION
 (Unaudited)
 FINANCIAL HIGHLIGHTS
 Three Months Three Months
 Ended Ended
 September 30, September 30,
 (In thousands except per share data) 1993 1992
 Income before extraordinary
 items and cumulative effect
 of change in accounting principle $ 195,415 161,626
 Extraordinary items - 582
 Cumulative effect of change
 in accounting principle (b) - -
 Net income 195,415 162,208
 Dividends on preferred stock 6,240 7,322
 Net income applicable to
 common stockholders $ 189,175 154,886
 Net income applicable to common
 stockholders on an operating
 basis (a) $ 189,175 154,304
 Net income applicable to common
 stockholders on an operating
 basis per common share $ 1.12 .96
 Income before extraordinary
 items and cumulative effect
 of change in accounting
 principle per common share $ 1.12 .96
 Net income per common share $ 1.12 .96
 Average common shares 168,541 161,864
 Common stockholders' equity $ 4,772,478 4,115,000
 Total stockholders' equity 5,056,518 4,412,328
 Book value per common share $ 28.14 25.37
 Actual common shares, net 169,574 162,207
 Common stock period-end
 price $ 47.625 36.250
 Series 1990 preferred stock
 period-end price $ 53.500 54.375
 (a) Represents income before extraordinary items and cumulative
 effect of change in accounting principle after deducting
 preferred stock dividends.
 (b) The first quarter of 1992 was adjusted to reflect the
 FINANCIAL HIGHLIGHTS Increase
 (In thousands except per share data) (Decrease)
 Income before extraordinary
 items and cumulative effect
 of change in accounting principle 20.9 pct
 Extraordinary items -
 Cumulative effect of change
 in accounting principle (b) -
 Net income 20.5
 Dividends on preferred stock (14.8)
 Net income applicable to
 common stockholders 22.1 pct
 Net income applicable to common
 stockholders on an operating
 basis (a) 22.6 pct
 Net income applicable to common
 stockholders on an operating
 basis per common share 16.7 pct
 Income before extraordinary
 items and cumulative effect
 of change in accounting
 principle per common share 16.7 pct
 Net income per common share 16.7
 Average common shares 4.1
 Common stockholders' equity 16.0
 Total stockholders' equity 14.6
 Book value per common share 10.9
 Actual common shares, net 4.5
 Common stock period-end
 price 31.4
 Series 1990 preferred stock
 period-end price (1.6)pct
 (a) Represents income before extraordinary items and cumulative
 effect of change in accounting principle after deducting
 preferred stock dividends.
 (b) The first quarter of 1992 was adjusted to reflect the
 retroactive adoption of new income tax accounting rules.
 FINANCIAL HIGHLIGHTS
 Nine Months Nine Months
 Ended Ended
 September 30, September 30,
 (In thousands except per share data) 1993 1992
 Income before extraordinary
 items and cumulative effect
 of change in accounting principle $ 622,178 375,657
 Extraordinary items - 477
 Cumulative effect of change
 in accounting principle (b) - (8,519)
 Net income 622,178 367,615
 Dividends on preferred stock 19,411 25,092
 Net income applicable to
 common stockholders $ 602,767 342,523
 Net income applicable to common
 stockholders on an operating
 basis (a) $ 602,767 350,565
 Net income applicable to common
 stockholders on an operating
 basis per common share $ 3.61 2.23
 Income before extraordinary
 items and cumulative effect
 of change in accounting
 principle per common share $ 3.61 2.23
 Net income per common share $ 3.61 2.18
 Average common shares 166,929 156,903
 Common stockholders' equity $ 4,772,478 4,115,000
 Total stockholders' equity 5,056,518 4,412,328
 Book value per common share $ 28.14 25.37
 Actual common shares, net 169,574 162,207
 Common stock period-end
 price $ 47.625 36.250
 Series 1990 preferred stock
 period-end price $ 53.500 54.375
 (a) Represents income before extraordinary items and cumulative
 effect of change in accounting principle after deducting
 preferred stock dividends.
 (b) The first quarter of 1992 was adjusted to reflect the
 retroactive adoption of new income tax accounting rules.
 FINANCIAL HIGHLIGHTS
 Percent
 Increase
 (In thousands except per share data) (Decrease)
 Income before extraordinary
 items and cumulative effect
 of change in accounting principle 65.6 pct
 Extraordinary items -
 Cumulative effect of change
 in accounting principle (b) -
 Net income 69.2
 Dividends on preferred stock (22.6)
 Net income applicable to
 common stockholders 76.0 pct
 Net income applicable to common
 stockholders on an operating
 basis (a) 72.0 pct
 Net income applicable to common
 stockholders on an operating
 basis per common share 61.9 pct
 Income before extraordinary
 items and cumulative effect
 of change in accounting
 principle per common share 61.9 pct
 Net income per common share 65.6
 Average common shares 6.4
 Common stockholders' equity 16.0
 Total stockholders' equity 14.6
 Book value per common share 10.9
 Actual common shares, net 4.5
 Common stock period-end
 price 31.4
 Series 1990 preferred stock
 period-end price (1.6)pct
 (a) Represents income before extraordinary items and cumulative
 effect of change in accounting principle after deducting
 preferred stock dividends.
 (b) The first quarter of 1992 was adjusted to reflect the
 retroactive adoption of new income tax accounting rules.
 -0- 10/14/93
 /CONTACT: (Media) Jeep Bryant (Work) 704-374-2957, or (Home) 704-335-0415; or (Investor) Barbara Massa or Sean Fox, 704-374-7060, all of First Union Corporation/
 /FIRST ADD -- TABULAR MATERIAL -- TO FOLLOW/
 (FTU)


CO: First Union Corporation ST: North Carolina IN: FIN SU: ERN

CM -- CH005 -- 2226 10/14/93 12:14 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 14, 1993
Words:1552
Previous Article:COMCENTRAL CORP. RECEIVES $8 MILLION TELECOM CONTRACT
Next Article:PARK VIEW FEDERAL ANNOUNCES EARNINGS
Topics:

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