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FIRST UNION EARNINGS UP 66 PCT. IN 4TH QUARTER, 5 PCT. FOR 1991

 FIRST UNION EARNINGS UP 66 PCT.
 IN 4TH QUARTER, 5 PCT. FOR 1991
 CHARLOTTE, N.C., Jan. 15 /PRNewswire/ -- First Union Corporation (NYSE: FTU FTUpr) today reported earnings for the fourth quarter of 1991 increased 66 percent to $78 million from $47 million in the same period a year ago. On a per common share basis, earnings in the fourth quarter of 1991 increased to 66 cents from 43 cents a year ago.
 In 1991, net income applicable to common stockholders increased 5 percent to $286 million from $272 million in 1990. On a per common share basis, earnings in 1991 increased to $2.55 from $2.52 in 1990.
 "We are pleased by our results in view of the banking industry's difficult year. We made modest progress in earnings during 1991 and major progress in earnings potential. We are especially encouraged by the $62 million decline in nonperforming assets from third quarter levels," said Edward E. Crutchfield Jr., First Union Corporation chairman and chief executive officer.
 Key factors contributing to the increase in net income were an increase in the net interest margin, gains on sales of assets, increased fee income and relatively flat expenses, excluding the impact of Southeast Banks-related expenses and higher Federal Deposit Insurance Corp. premiums. Earnings in 1991 were dampened by the lack of loan growth and a higher loan loss provision.
 The most significant event strengthening First Union's earnings potential was the FDIC-assisted purchase accounting acquisition of $9.9 billion in assets and $7.7 billion in deposits of Southeast Banks in September 1991, primarily because of the cost savings that can be achieved from a large in-market acquisition.
 First Union's return on average assets (ROA) was .77 percent for 1991, compared with .79 percent a year ago. The return on average common stockholders' equity (ROE) was 11.85 percent in 1991, compared with 12.50 percent a year ago. ROE declined primarily because the pace of earnings growth did not match the growth in common stockholders' equity. Because ROE was below management's internal minimum goals, senior management incentive bonuses were not paid in 1991.
 At December 31, 1991, First Union Corporation had assets of $46.1 billion, compared with $40.8 billion at year-end 1990. The increase primarily reflects the Southeast Banks acquisition. In other year-to-year comparisons, period-end net loans increased 22 percent to $32.1 billion from $26.2 billion at year-end 1990. The increase included $6.2 billion of acquired Southeast Banks performing loans. First Union's nonperforming assets declined from $1.266 billion at the end of the third quarter of 1991 to $1.204 billion at December 31, 1991. At December 31, 1990, nonperforming assets were $813 million. The investment portfolio was $6.6 billion at December 31, 1991, compared with $8.1 billion at year- end 1990. The market value of First Union's investment securities at December 31, 1991, was $252 million above the value at which the securities were carried on First Union's books. Deposits increased 32 percent to $36.6 billion from year-end 1990, primarily because of $9.9 billion in initial deposits acquired from Southeast Banks and three failed thrifts during the third quarter of 1991. Total stockholders' equity increased 21 percent to $3.11 billion at year- end 1991 from $2.57 billion a year ago.
 First Union Corporation operates 1,001 banking offices in Florida, North Carolina, South Carolina, Georgia and one banking office in Tennessee, and 209 nonbanking offices in 36 states.
 FIRST UNION CORPORATION
 (Unaudited)
 FINANCIAL HIGHLIGHTS
 Three Months Ended
 December 31,
 (In thousands except per share data) 1991 1990
 Net income $ 88,925 55,478
 Dividends on preferred stock 10,677 8,396
 Net income applicable to
 common stockholders $ 78,248 47,082
 Net income per common share $ .66 .43
 Average common shares, net 118,634 109,180
 Common stockholders' equity $ 2,728,500 2,262,132
 Total stockholders' equity 3,112,540 2,565,572
 Book value per common share $ 22.54 20.72
 Actual common shares, net 121,064 109,173
 Common stock period-end
 price $ 30.000 15.375
 Preferred stock period -
 end price $ 51.000 41.125
 Years Ended
 Percent December 31,
 (In thousands except per share data) Increase 1991
 Net income $ 60.3 pct 318,737
 Dividends on preferred stock 27.2 33,225
 Net income applicable to
 common stockholders $ 66.2 pct 285,512
 Net income per common share $ 53.5 pct 2.55
 Average common shares, net 8.7 112,113
 Common stockholders' equity $ 20.6 2,728,500
 Total stockholders' equity 21.3 3,112,540
 Book value per common share $ 8.8 22.54
 Actual common shares, net 10.9 121,064
 Common stock period-end
 price $ 95.1 30.000
 Preferred stock period -
 end price $ 24.0 pct 51.000
 Years Ended
 (In thousands except per share data) December 31, Percent
 1990 Increase
 Net income
 Dividends on preferred stock 304,310 4.7 pct
 Net income applicable to 32,502 2.2
 common stockholders
 271,808 5.0 pct
 Net income per common share
 Average common shares, net 2.52 1.2 pct
 Common stockholders' equity 108,045 3.8
 Total stockholders' equity 2,262,132 20.6
 Book value per common share 2,565,572 21.3
 Actual common shares, net 20.72 8.8
 Common stock period-end 109,173 10.9
 price
 Preferred stock period - 15.375 95.1
 end price
 41.125 24.0 pct
 EARNINGS SUMMARY
 1991 1990
 (In thousands except per share data) 4Q 4Q
 Net interest income (a) $ 460,014 358,044
 Provision for loan losses 125,271 82,599
 Net interest income after
 provision for loan losses (a) 334,743 275,445
 Investment security
 transactions 27,450 7,729
 Noninterest income 238,340 149,978
 Noninterest expense 458,551 326,680
 Income from continuing
 operations before income taxes
 and extraordinary item (a) 141,982 106,472
 Income taxes 28,496 21,985
 Tax-equivalent adjustment 24,561 29,009
 Income from continuing
 operations before
 extraordinary item 88,925 55,478
 Discontinued operations - -
 Income before extraordinary item 88,925 55,478
 Extraordinary item - -
 Net income 88,925 55,478
 Dividends on preferred
 stock 10,677 8,396
 Net income applicable to
 common stockholders $ 78,248 47,082
 Income per common share
 from continuing operations
 before extraordinary item $ .66 .43
 Income per common share
 before extrordinary item .66 .43
 Net income per common share $ .66 .43
 Years Ended December 31,
 (In thousands except per share data) 1991 1990
 Net interest income (a) $ 1,582,469 1,398,078
 Provision for loan losses 481,583 177,715
 Net interest income after
 provision for loan losses (a) 1,100,886 1,220,363
 Investment security
 transactions 112,762 8,848
 Noninterest income 746,467 541,736
 Noninterest expense 1,456,894 1,251,318
 Income from continuing
 operations before income taxes
 and extraordinary item (a) 503,221 519,629
 Income taxes 77,516 95,446
 Tax-equivalent adjustment 106,968 119,873
 Income from continuing
 operations before
 extraordinary item 318,737 304,310
 Discontinued operations - -
 Income before extraordinary item 318,737 304,310
 Extraordinary item - -
 Net income 318,737 304,310
 Dividends on preferred
 stock 33,225 32,502
 Net income applicable to
 common stockholders $ 285,512 271,808
 Income per common share
 from continuing operations
 before extraordinary item $ 2.55 2.52
 Income per common share
 before extrordinary item 2.55 2.52
 Net income per common share $ 2.55 2.52
 (a) Tax-equivalent.
 Years Ended December 31,
 (In thousands except per share data) 1989 1988
 Net interest income (a) 1,159,285 1,173,473
 Provision for loan losses 80,576 61,137
 Net interest income after
 provision for loan losses (a) 1,078,709 1,112,336
 Investment security
 transactions 15,540 35,389
 Noninterest income 394,321 409,860
 Noninterest expense 1,050,961 1,060,850
 Income from continuing
 operations before income taxes
 and extraordinary item (a) 437,609 496,735
 Income taxes 52,172 64,650
 Tax-equivalent adjustment 129,246 135,185
 Income from continuing
 operations before
 extraordinary item 256,191 296,900
 Discontinued operations - -
 Income before extraordinary item 256,191 296,900
 Extraordinary item - -
 Net income 256,191 296,900
 Dividends on preferred
 stock - -
 Net income applicable to
 common stockholders 256,191 296,900
 Income per common share
 from continuing operations
 before extraordinary item 2.40 2.76
 Income per common share
 before extrordinary item 2.40 2.76
 Net income per common share 2.40 2.76
 (a) Tax-equivalent.
 Years Ended December 31,
 (In thousands except per share data) 1987 1986
 Net interest income (a) 1,161,836 1,103,845
 Provision for loan losses 82,300 94,688
 Net interest income after
 provision for loan losses (a) 1,079,536 1,009,157
 Investment security
 transactions 31,237 112,212
 Noninterest income 416,006 365,074
 Noninterest expense 1,006,412 938,935
 Income from continuing
 operations before income taxes
 and extraordinary item (a) 520,367 547,508
 Income taxes 64,374 48,325
 Tax-equivalent adjustment 172,871 220,488
 Income from continuing
 operations before
 extraordinary item 283,122 278,695
 Discontinued operations - 17,135
 Income before extraordinary item 283,122 295,830
 Extraordinary item - (21,483)
 Net income 283,122 274,347
 Dividends on preferred
 stock - -
 Net income applicable to
 common stockholders 283,122 274,347
 Income per common share
 from continuing operations
 before extraordinary item 2.55 2.57
 Income per common share
 before extrordinary item 2.55 2.72
 Net income per common share 2.55 2.53
 (a) Tax-equivalent.
 OTHER FINANCIAL DATA
 1991 1990
 (Dollars in thousands) 4Q 4Q
 Return on average assets (a) (e) .75 pct .55
 Return on average common
 equity (a) (e) 11.80 8.30
 Net interest margin 4.46 4.04
 Net charge-offs as pct of
 average loans, net (a) 1.33 .71
 Allowance as pct of loans, net 1.97 1.73
 Allowance as pct of nonaccrual
 and restructured loans 75 74
 Allowance as pct of
 nonperforming assets 53 pct 56
 Net charge-offs $ 107,860 47,276
 Nonperforming assets (b)
 Commercial nonaccrual 394,590 205,457
 Real estate nonaccrual 387,445 385,266
 Total nonaccrual 782,035 590,723
 Restructured loans 57,386 19,521
 Foreclosed properties 364,931 202,314
 Total nonperforming assets $ 1,204,352 812,558
 As pct of loans, net and
 foreclosed properties 3.71 pct 3.07
 Segregated loss-sharing
 nonperforming assets
 Nonaccrual loans $ 665,975 -
 Foreclosed properties 28,857 -
 Total 694,832 -
 Less FDIC loss-sharing (c) (590,607) -
 Total (d) $ 104,225 -
 OTHER FINANCIAL DATA Years Ended December 31,
 1991 1990
 (Dollars in thousands)
 Return on average assets (a) (e) .77 .79
 Return on average common
 equity (a) (e) 11.85 12.50
 Net interest margin 4.27 4.06
 Net charge-offs as pct of
 average loans, net (a) 1.28 .58
 Allowance as pct of loans, net 1.97 1.73
 Allowance as pct of nonaccrual
 and restructured loans 75 74
 Allowance as pct of
 nonperforming assets 53 56
 Net charge-offs 356,515 149,769
 Nonperforming assets (b)
 Commercial nonaccrual 394,590 205,457
 Real estate nonaccrual 387,445 385,266
 Total nonaccrual 782,035 590,723
 Restructured loans 57,386 19,521
 Foreclosed properties 364,931 202,314
 Total nonperforming assets 1,204,352 812,558
 As pct of loans, net and 3.71 3.07
 foreclosed properties
 Segregated loss-sharing
 nonperforming assets
 Nonaccrual loans 665,975 -
 Foreclosed properties 28,857 -
 Total 694,832 -
 Less FDIC loss-sharing (c) (590,607) -
 Total (d) 104,225 -
 OTHER FINANCIAL DATA Years Ended December 31,
 1989 1988
 (Dollars in thousands)
 Return on average assets (a) (e) .84 1.06
 Return on average common
 equity (a) (e) 12.77 16.16
 Allowance as pct of nonaccrual
 and restructured loans 145 166
 Allowance as pct of
 nonperforming assets 106 122
 Net charge-offs 70,095 97,072
 Nonperforming assets (b)
 Commercial nonaccrual 94,263 100,924
 Real estate nonaccrual 83,912 49,450
 Total nonaccrual 178,175 150,374
 Restructured loans 864 932
 Foreclosed properties 65,312 54,510
 Total nonperforming assets 244,351 205,816
 As pct of loans, net and 1.12 1.08
 foreclosed properties
 Segregated loss-sharing
 nonperforming assets
 Nonaccrual loans - -
 Foreclosed properties - -
 Total - -
 Less FDIC loss-sharing (c) - -
 Total (d) - -
 Years Ended December 31,
 1987 1986
 (Dollars in thousands)
 Return on average assets (a) (e) 1.10 1.22
 Return on average common
 equity (a) (e) 16.54 18.68
 Net interest margin 5.07 5.43
 Net charge-offs as pct of
 average loans, net (a) .43 .49
 Allowance as pct of loans, net 1.71 1.68
 Allowance as pct of nonaccrual
 and restructured loans 167 174
 Allowance as pct of
 nonperforming assets 132 148
 Net charge-offs 61,039 62,896
 Nonperforming assets (b)
 Commercial nonaccrual 92,326 84,730
 Real estate nonaccrual 64,090 48,014
 Total nonaccrual 156,416 132,744
 Restructured loans 1,414 2,102
 Foreclosed properties 41,919 24,135
 Total nonperforming assets 199,749 158,981
 As pct of loans, net and 1.29 1.13
 foreclosed properties
 Segregated loss-sharing
 nonperforming assets
 Nonaccrual loans - -
 Foreclosed properties - -
 Total - -
 Less FDIC loss-sharing (c) - -
 Total (d) - -
 (a) Quarterly amounts annualized.
 (b) Excludes nonperforming assets related to
 the Southeast Bank acquisition.
 (c) Represents 85 percent of total segregated assets.
 (d) Allowance for losses on such assets amounts to
 $54,000,000 at December 31, 1991.
 This amount is not included in the allowance for loan losses.
 (e) Based on income from continuing operations
 before extraordinary item.
 (f) Based on domestic net charge-offs. Total net charge-offs
 as a percentage of average net loans were .57 pct.
 AVERAGE BALANCE SHEET SUMMARY
 1991 1990
 (In thousands) 4Q 4Q
 Loans, net $ 32,265,153 26,582,342
 Earning assets 41,329,158 35,573,447
 Total assets 46,792,371 39,746,815
 Noninterest-bearing deposits 6,126,922 4,509,949
 Consumer time deposits 27,356,901 18,655,105
 Other time deposits 3,113,255 3,248,549
 Cn? stockholders' equity 2,630,932 2,250,278
 Total stockholders' equity $ 3,042,690 2,556,571
 Years Ended December 31,
 (In thousands) 1991 1990
 Loans, net
 Consumer time deposits 13,584,367 12,117,412
 Other time deposits 3,022,176 2,369,662
 Common stockholders' equity 2,006,089 1,837,603
 Total stockholders' equity 2,006,089 1,837,603
 Years Ended December 31,
 (In thousands) 1987 1986
 Loans, net 14,214,271 12,821,326
 Earning assets 22,923,968 20,337,829
 Total assets 25,737,883 22,760,390
 Noninterest-bearing deposits 3,780,871 3,442,421
 Consumer time deposits 11,034,827 9,906,362
 Other time deposits 1,836,469 1,277,961
 Common stockholders' equity 1,712,075 1,491,674
 Total stockholders' equity 1,712,075 1,491,674
 INTANGIBLE ASSETS
 (In thousands)
 Intangible assets
 Goodwill $ 653,085 660,720
 Deposit base premium 160,712 155,422
 Other 11,185 4,703
 Total $ 824,982 820,84258
 (In thousands)
 Intangible assets
 Goodwill 653,085 660,720
 Deposit base premium 160,712 155,422
 Other 11,185 4,703
 Total 824,982 820,845
 Mortgage servicing rights 146,295 111,754
 Credit card premium 62,670 12,258
 (In thousands)
 Intangible assets
 Goodwill 218,047 239,549
 Deposit base premium 94,130 112,884
 Other 5,904 24,605
 Total 318,081 377,038
 Mortgage servicing rights 89,937 20,436
 Credit card premium 6,249 7,271
 (In thousands)
 Intangible assets
 Goodwill 138,503 93,291
 Deposit base premium 115,636 132,408
 Other 28,089 31,555
 Total 282,228 257,254
 Mortgage servicing rights 17,896 21,395
 Credit card premium 8,305 9,315
 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 Three Months Ended
 December 31,
 (In thousands) 1991 1990
 Interest income:
 Interest and fees on loans $ 770,648 712,554
 Interest and dividends on
 investment securities 140,182 167,371
 Other interest income 31,140 23,796
 Total interest income 941,970 903,721
 Interest expense:
 Interest on deposits 408,281 374,179
 Interest on borrowings 98,236 200,507
 Total interest expense 506,517 574,686
 Net interest income 435,453 329,035
 Provision for loan losses 125,271 82,599
 Net interest income after
 provision for loan losses 310,182 246,436
 Noninterest income:
 Service charges on deposit
 accounts est expense:
 Interest on deposits 1,467,202 1,478,957
 Interest on borrowings 519,232 760,959
 Total interest expense 1,986,434 2,239,916
 Net interest income 1,475,501 1,278,205
 Provision for loan losses 481,583 177,715
 Net interest income after
 provision for loan losses 993,918 1,100,490
 Noninterest income:
 Service charges on deposit
 accounts 238,005 199,252
 Mortgage banking income 95,577 69,915
 Capital management income 117,182 91,677
 Investment security
 transactions 112,762 8,848
 Sundry income 295,703 180,892
 Total noninterest income 859,229 550,584
 -0- 1/15/92
 /CONTACT: MEDIA CONTACT - Jeep Bryant, First Union Corporation, W: 704-374-2957, H: 704-335-0415; INVESTOR RELATIONS CONTACT -- Maggie Norris, First Union Corporation, W: 704-374-4353/
 (FTU) CO: First Union Corporation ST: North Carolina IN: FIN SU: ERN


DF -- CH002 -- 9887 01/15/92 10:08 EST
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