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FIRST UNION REPORTS '92 EARNINGS UP 70 PERCENT

 CHARLOTTE, N.C., Jan. 12 /PRNewswire/ -- First Union Corporation (NYSE: FTU FTUpr) today reported record earnings of $485 million for 1992, a 70 percent increase from 1991. On a per common share basis, net income applicable to common stockholders increased to $3.72 from $2.55.
 For the fourth quarter of 1992, net income applicable to common stockholders increased 64 percent to $128 million, or 95 cents per common share, from $78 million, or 66 cents per common share, in the same period a year ago.
 "We are very pleased with the growth in earnings and strong performance in key areas of our company during 1992," said Edward E. Crutchfield Jr., First Union's chairman and chief executive officer.
 Key factors in First Union's earnings performance included:
 -- Strength in the net interest margin. The margin has
 benefited from decreased funding costs and the impact of
 off-balance sheet transactions. The margin was 4.98 percent in
 1992, compared with 4.27 percent in 1991.
 -- Improvement in credit quality, accompanied by a decline in the
 loan loss provision. Nonperforming assets declined to $966
 million at the end of 1992, down from $1.204 billion at year-end
 1991, and the loan loss provision was $250 million in 1992, down
 from $482 million in 1991.
 -- Continuing growth in fee income, which reflects increased
 mortgage servicing, cash management and capital management
 accounts.
 First Union's return on average common equity improved to 15.26 percent, up from 11.85 percent in 1991. The corporation's return on average assets was 1.07 percent, compared with .77 percent in 1991.
 The 1992 results also include a fourth quarter 1992 restructuring charge of $36 million for merger expenses related to the pending acquisition of Dominion Bankshares.
 Total stockholders' equity increased 23 percent to $3.83 billion at December 31, 1992, from $3.11 billion at year-end 1991.
 Net loans at December 31, 1992, were $33.4 billion, an increase from $32.1 billion at year-end 1991. Deposits were $39.4 billion, compared with $36.6 billion at year-end 1991.
 Assets at December 31, 1992, were $51.3 billion, compared with $46.1 billion at year-end 1991. First Union operates 896 banking offices in Florida, North Carolina, South Carolina, Georgia and one banking office in Tennessee, 45 savings bank offices in Virginia, Maryland, the District of Columbia and Florida, and 190 nonbanking offices in 36 states and the District of Columbia. When pending acquisitions have been completed during the first half of 1993, the corporation will operate approximately 1,300 banking offices and have assets of approximately $66 billion, based upon September 30, 1992, assets, making it the nation's eighth largest bank holding company. The results for 1992 do not reflect the pending pooling-of-interest acquisitions.
 FIRST UNION CORPORATION
 (Unaudited)
 FINANCIAL HIGHLIGHTS
 Three Months
 Ended
 December 31,
 (In thousands except per share data) 1992
 Net income $ 134,791
 Dividends on preferred stock 6,555
 Net income applicable to
 common stockholders $ 128,236
 Net income per common share $ .95
 Average common shares 135,072
 Common stockholders' equity $ 3,547,634
 Total stockholders' equity 3,831,667
 Book value per common share $ 26.08
 Actual common shares, net 136,052
 Common stock period-end
 price $ 43.625
 Preferred stock period-end
 price $ 53.625
 EARNINGS SUMMARY
 1992
 (In thousands except per share data) 4Q
 Net interest income (a) $ 563,480
 Provision for loan losses 52,554
 Net interest income after
 provision for loan losses (a) 510,926
 Securities available for sale
 transactions (1,285)
 Investment security
 transactions 629
 Noninterest income 216,377
 Noninterest expense 510,001
 Income before income taxes (a) 216,646
 Income taxes 60,160
 Tax-equivalent adjustment 21,695
 Net income 134,791
 Dividends on preferred
 stock 6,555
 Net income applicable to
 common stockholders $ 128,236
 Net income per common share $ .95
 (a) Tax-equivalent.
 First Union Earnings
 FIRST UNION CORPORATION
 (Unaudited)
 FINANCIAL HIGHLIGHTS
 Three Months
 Ended
 December 31,
 (In thousands except per share data) 1991
 Net income 88,925
 Dividends on preferred stock 10,677
 Net income applicable to
 common stockholders 78,248
 Net income per common share .66
 Average common shares 118,634
 Common stockholders' equity 2,728,500
 Total stockholders' equity 3,112,540
 Book value per common share 22.54
 Actual common shares, net 121,064
 Common stock period-end
 price 30.000
 Preferred stock period-end
 price 51.000
 EARNINGS SUMMARY
 1991
 (In thousands except per share data) 4Q
 Net interest income (a) 460,014
 Provision for loan losses 125,271
 Net interest income after
 provision for loan losses (a) 334,743
 Securities available for sale
 transactions -
 Investment security
 transactions 27,450
 Noninterest income 238,340
 Noninterest expense 458,551
 Income before income taxes (a) 141,982
 Income taxes 28,496
 Tax-equivalent adjustment 24,561
 Net income 88,925
 Dividends on preferred
 stock 10,677
 Net income applicable to
 common stockholders 78,248
 Net income per common share .66
 (a) Tax-equivalent.
 FINANCIAL HIGHLIGHTS
 Percent
 Increase
 (In thousands except per share data) (Decrease)
 Net income 51.6 pct
 Dividends on preferred stock (38.6)
 Net income applicable to
 common stockholders 63.9 pct
 Net income per common share 43.9 pct
 Average common shares 13.9
 Common stockholders' equity 30.0
 Total stockholders' equity 23.1
 Book value per common share 15.7
 Actual common shares, net 12.4
 Common stock period-end
 price 45.4
 Preferred stock period-end
 price 5.1 pct
 EARNINGS SUMMARY
 Years Ended
 December 31,
 (In thousands except per share data) 1992
 Net interest income (a) 2,099,618
 Provision for loan losses 249,653
 Net interest income after
 provision for loan losses (a) 1,849,965
 Securities available for sale
 transactions 7,613
 Investment security
 transactions (5,745)
 Noninterest income 843,306
 Noninterest expense 1,881,489
 Income before income taxes (a) 813,650
 Income taxes 206,980
 Tax-equivalent adjustment 91,458
 Net income 515,212
 Dividends on preferred
 stock 30,650
 Net income applicable to
 common stockholders 484,562
 Net income per common share 3.72
 (a) Tax-equivalent.
 FINANCIAL HIGHLIGHTS
 Years Ended
 December 31,
 (In thousands except per share data) 1992
 Net income $ 515,212
 Dividends on preferred stock 30,650
 Net income applicable to
 common stockholders $ 484,562
 Net income per common share $ 3.72
 Average common shares 130,344
 Common stockholders' equity $ 3,547,634
 Total stockholders' equity 3,831,667
 Book value per common share $ 26.08
 Actual common shares, net 136,052
 Common stock period-end
 price $ 43.625
 Preferred stock period-end
 price $ 53.625
 EARNINGS SUMMARY
 Years Ended
 December 31,
 (In thousands except per share data) 1991
 Net interest income (a) 1,582,469
 Provision for loan losses 481,583
 Net interest income after
 provision for loan losses (a) 1,100,886
 Securities available for sale
 transactions -
 Investment security
 transactions 112,762
 Noninterest income 746,467
 Noninterest expense 1,456,894
 Income before income taxes (a) 503,221
 Income taxes 77,516
 Tax-equivalent adjustment 106,968
 Net income 318,737
 Dividends on preferred
 stock 33,225
 Net income applicable to
 common stockholders 285,512
 Net income per common share 2.55
 (a) Tax-equivalent.
 FINANCIAL HIGHLIGHTS
 Years Ended
 December 31,
 (In thousands except per share data) 1991
 Net income $ 318,737
 Dividends on preferred stock 33,225
 Net income applicable to
 common stockholders $ 285,512
 Net income per common share $ 2.55
 Average common shares 112,113
 Common stockholders' equity $ 2,728,500
 Total stockholders' equity 3,112,540
 Book value per common share $ 22.54
 Actual common shares, net 121,064
 Common stock period-end
 price $ 30.000
 Preferred stock period-end
 price $ 51.000
 EARNINGS SUMMARY
 Years Ended
 December 31,
 (In thousands except per share data) 1990
 Net interest income (a) 1,398,078
 Provision for loan losses 177,715
 Net interest income after
 provision for loan losses (a) 1,220,363
 Securities available for sale
 transactions -
 Investment security
 transactions 8,848
 Noninterest income 541,736
 Noninterest expense 1,251,318
 Income before income taxes (a) 519,629
 Income taxes 95,446
 Tax-equivalent adjustment 119,873
 Net income 304,310
 Dividends on preferred
 stock 32,502
 Net income applicable to
 common stockholders 271,808
 Net income per common share 2.52
 (a) Tax-equivalent.
 FINANCIAL HIGHLIGHTS
 Percent
 Increase
 (In thousands except per share data) (Decrease)
 Net income 61.6 pct
 Dividends on preferred stock (7.8)
 Net income applicable to
 common stockholders 69.7 pct
 Net income per common share 45.9 pct
 Average common shares 16.3
 Common stockholders' equity 30.0
 Total stockholders' equity 23.1
 Book value per common share 15.7
 Actual common shares, net 12.4
 Common stock period-end
 price 45.4
 Preferred stock period-end
 price 5.1 pct
 EARNINGS SUMMARY
 Years Ended
 December 31,
 (In thousands except per share data) 1989
 Net interest income (a) 1,159,285
 Provision for loan losses 80,576
 Net interest income after
 provision for loan losses (a) 1,078,709
 Securities available for sale
 transactions -
 Investment security
 transactions 15,540
 Noninterest income 394,321
 Noninterest expense 1,050,961
 Income before income taxes (a) 437,609
 Income taxes 52,172
 Tax-equivalent adjustment 129,246
 Net income 256,191
 Dividends on preferred
 stock -
 Net income applicable to
 common stockholders 256,191
 Net income per common share 2.40
 (a) Tax-equivalent.
 FINANCIAL HIGHLIGHTS
 (In thousands except per share data)
 Net income
 Dividends on preferred stock
 Net income applicable to
 common stockholders
 Net income per common share
 Average common shares
 Common stockholders' equity
 Total stockholders' equity
 Book value per common share
 Actual common shares, net
 Common stock period-end
 price
 Preferred stock period-end
 price
 EARNINGS SUMMARY
 Years Ended
 December 31,
 (In thousands except per share data) 1988
 Net interest income (a) 1,173,473
 Provision for loan losses 61,137
 Net interest income after
 provision for loan losses (a) 1,112,336
 Securities available for sale
 transactions -
 Investment security
 transactions 35,389
 Noninterest income 409,860
 Noninterest expense 1,060,850
 Income before income taxes (a) 496,735
 Income taxes 64,650
 Tax-equivalent adjustment 135,185
 Net income 296,900
 Dividends on preferred
 stock -
 Net income applicable to
 common stockholders 296,900
 Net income per common share 2.76
 (a) Tax-equivalent.
 FINANCIAL HIGHLIGHTS
 (In thousands except per share data)
 Net income
 Dividends on preferred stock
 Net income applicable to
 common stockholders
 Net income per common share
 Average common shares
 Common stockholders' equity
 Total stockholders' equity
 Book value per common share
 Actual common shares, net
 Common stock period-end
 price
 Preferred stock period-end
 price
 EARNINGS SUMMARY
 Years Ended
 December 31,
 (In thousands except per share data) 1987
 Net interest income (a) 1,161,836
 Provision for loan losses 82,300
 Net interest income after
 provision for loan losses (a) 1,079,536
 Securities available for sale
 transactions -
 Investment security
 transactions 31,237
 Noninterest income 416,006
 Noninterest expense 1,006,412
 Income before income taxes (a) 520,367
 Income taxes 64,374
 Tax-equivalent adjustment 172,871
 Net income 283,122
 Dividends on preferred
 stock -
 Net income applicable to
 common stockholders 283,122
 Net income per common share 2.55
 (a) Tax-equivalent.
 -0- 1/12/93
 /CONTACT: (Media) Jeep Bryant, 704-374-2957 or (Home) 704-335-0415; or (Investor) Barbara Massa or Maggie Norris, 704-374-4353, all of First Union Corporation/
 /FIRST ADD -- TABULAR MATERIAL -- TO FOLLOW/
 (FTU)


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

CM -- CH002 -- 4016 01/12/93 12:24 EST
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Date:Jan 12, 1993
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