Printer Friendly

FIRST UNION REPORTS RECORD 2ND QUARTER EARNINGS; UP 80 PERCENT

     CHARLOTTE, N.C., July 15 /PRNewswire/ -- First Union Corporation (NYSE: FTU FTUpr) today reported record earnings applicable to common stockholders in the second quarter of 1993 of $221 million, an 80 percent increase from $123 million in the same period a year ago and up 14 percent from $193 million in the first quarter of this year.
     Net income applicable to common stockholders was $1.32 per common share in the second quarter of 1993, a 67 percent increase from 79 cents in the same period a year ago and up 13 percent from $1.17 in the first quarter this year.
     In the first half of 1993, net income applicable to common stockholders was $414 million, or $2.49 per common share, compared with $188 million, or $1.22, in the first half of 1992.
     All of last year's historical 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.  The second quarter 1993 results include the purchase accounting acquisitions of Georgia Federal Bank, FSB, from June 12 and First American Metro Corp. from June 23.
     "Our record second quarter earnings, which represent a 19.93 percent return on common equity, cap a period of intense effort as we consummated two acquisitions, continued integrating the operations of our recent merger partners, and completed the nation's first multistate deposit system," said Edward E. Crutchfield Jr., First Union Corporation chairman and chief executive officer.  "I am pleased with our high level of profitability during this period, which in part reflects the success of our recent acquisitions and our overall strategic focus."
     Key factors in First Union's second quarter 1993 performance were strong net interest income, merchant banking gains, a decline in credit- related costs and a continuing focus on cost control.
     Merchant banking gains of $44 million, or 16 cents per share after tax, were recorded in the second quarter of 1993.  Merchant banking has matured as a line of business for First Union and in the future is expected to contribute to fee income as well as to gains on the sale of equity positions.
     Net loans at June 30, 1993, were $44.9 billion, compared with $40.2 billion at June 30, 1992.  The increase primarily reflects loans acquired with the second quarter acquisitions as well as growth in commercial, installment and second mortgage loans.
     Deposits were $55.4 billion compared with $47.3 billion a year ago, primarily reflecting the second quarter acquisitions.  Total stockholders' equity was $4.87 billion at June 30, 1993, a 15 percent increase from June 30, 1992.
     Nonperforming assets were $1.273 billion at June 30, 1993, compared with $1.351 billion at December 31, 1992, and $1.539 billion at June 30, 1992.  Additions to the nonperforming assets portfolio since March 31, 1993, primarily resulting from the Georgia Federal acquisition, were substantially offset by reductions of approximately $82 million throughout the rest of corporation.  Nonperforming assets and certain performing loans amounting to $288 million acquired with First American have been earmarked for disposition in a segregated assets portfolio, and have been discounted to approximately 48 percent of First American's carrying value.  The loan loss provision was $61 million in the second quarter of 1993, compared with $117 million in the second quarter a year ago. First Union's loan loss allowance was $1.037 billion at June 30, 1993.
     At June 30, 1993, First Union Corporation had assets of $72.0 billion and operated 1,434 banking offices in Florida, North Carolina, South Carolina, Georgia, Virginia, Tennessee, Maryland and Washington, D.C., and 232 nonbanking offices in 36 states.
    FIRST UNION CORPORATION
    (Unaudited)
    FINANCIAL HIGHLIGHTS
                                                    Three         Three
                                                   Months        Months
                                                    Ended         Ended
                                                  June 30,      June 30,
    (In thousands except per share data)            1993          1992
    Income before extraordinary
      items and cumulative effect
      of change in accounting principle        $    226,771      130,511
    Extraordinary items                                -             -
    Cumulative effect of change
      in accounting principle (b)                      -             -
    Net income                                      226,771      130,511
    Dividends on preferred stock                      6,167        7,776
    Net income applicable to
        common stockholders                    $    220,604      122,735
    Net income applicable to common
      stockholders on an operating basis (a)   $    220,604      122,735
    Net income applicable to common
      stockholders on an operating
      basis per common share                   $       1.32          .78
    Income before extraordinary
      items and cumulative effect
      of change in accounting
      principle per common share               $       1.32          .78
    Net income per common share                $       1.32          .79
    Average common shares                           166,972      159,323
    Common stockholders' equity                $  4,582,577    3,950,234
    Total stockholders' equity                    4,866,617    4,247,565
    Book value per common share                $      27.27        24.59
    Actual common shares, net                       168,042      160,617
    Common stock period-end
        price                                  $     48.500       37.875
    Series 1990 preferred stock
        period-end price                       $     54.875       53.875
     (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.
    FIRST UNION CORPORATION
    (Unaudited)
     FINANCIAL HIGHLIGHTS
                                                   Percent
                                                  Increase
    (In thousands except per share data)         (Decrease)
    Income before extraordinary
      items and cumulative effect
      of change in accounting principle                73.8 pct
    Extraordinary items                                  -
    Cumulative effect of change
      in accounting principle (b)                        -
    Net income                                         73.8
    Dividends on preferred stock                      (20.7)
    Net income applicable to
        common stockholders                            79.7 pct
    Net income applicable to common
      stockholders on an operating basis (a)           79.7 pct
    Net income applicable to common
      stockholders on an operating
      basis per common share                           69.2 pct
    Income before extraordinary
      items and cumulative effect
      of change in accounting
      principle per common share                       69.2 pct
    Net income per common share                        67.1
    Average common shares                               4.8
    Common stockholders' equity                        16.0
    Total stockholders' equity                         14.6
    Book value per common share                        10.9
    Actual common shares, net                           4.6
    Common stock period-end
        price                                          28.1
    Series 1990 preferred stock
        period-end price                                1.9 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.
    FIRST UNION CORPORATION
    (Unaudited)
    FINANCIAL HIGHLIGHTS
                                                     Six           Six
                                                   Months        Months
                                                    Ended         Ended
                                                  June 30,      June 30,
    (In thousands except per share data)            1993          1992
     Income before extraordinary
      items and cumulative effect
      of change in accounting principle        $    426,763      214,031
    Extraordinary items                                -           (105)
    Cumulative effect of change
      in accounting principle (b)                      -         (8,519)
    Net income                                      426,763      205,407
    Dividends on preferred stock                     13,171       17,770
    Net income applicable to
        common stockholders                    $    413,592      187,637
    Net income applicable to common
      stockholders on an operating basis (a)   $    413,592      196,261
    Net income applicable to common
      stockholders on an operating
      basis per common share                   $       2.49         1.27
    Income before extraordinary
      items and cumulative effect
      of change in accounting
      principle per common share               $       2.49         1.27
    Net income per common share                $       2.49         1.22
    Average common shares                           166,122      154,406
    Common stockholders' equity                $  4,582,577    3,950,234
    Total stockholders' equity                    4,866,617    4,247,565
    Book value per common share                $      27.27        24.59
    Actual common shares, net                       168,042      160,617
    Common stock period-end
        price                                  $     48.500       37.875
    Series 1990 preferred stock
        period-end price                       $     54.875       53.875
    (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.
    FIRST UNION CORPORATION
    (Unaudited)
    FINANCIAL HIGHLIGHTS
                                                      Percent
                                                     Increase
    (In thousands except per share data)            (Decrease)
     Income before extraordinary
      items and cumulative effect
      of change in accounting principle                99.4 pct
    Extraordinary items                                  -
    Cumulative effect of change
      in accounting principle (b)                        -
    Net income                                        107.8
    Dividends on preferred stock                      (25.9)
    Net income applicable to
        common stockholders                           120.4 pct
    Net income applicable to common
      stockholders on an operating basis (a)          110.7 pct
    Net income applicable to common
      stockholders on an operating
      basis per common share                           96.1 pct
    Income before extraordinary
      items and cumulative effect
      of change in accounting
      principle per common share                       96.1 pct
    Net income per common share                       104.1
    Average common shares                               7.6
    Common stockholders' equity                        16.0
    Total stockholders' equity                         14.6
    Book value per common share                        10.9
    Actual common shares, net                           4.6
    Common stock period-end
        price                                          28.1
    Series 1990 preferred stock
        period-end price                                1.9 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.
    EARNINGS SUMMARY
                                                    1993          1993
    (In thousands except per share data)             2Q            1Q
    Net interest income (a)                    $    708,186      696,422
    Provision for loan losses                        61,450       60,329
    Net interest income after
        provision for loan losses (a)               646,736      636,093
    Securities available for sale
        transactions                                  1,505       17,316
    Investment security
        transactions                                  3,571          -
    Noninterest income                              305,356      254,005
    Noninterest expense                             591,042      578,295
    Income before income taxes,
      extraordinary items and
      cumulative effect of change
      in accounting principle (a)                   366,126      329,119
    Income taxes                                    115,465      105,040
    Tax-equivalent adjustment                        23,890       24,087
    Income before extraordinary
      items and cumulative effect
      of change in accounting principle             226,771      199,992
    Extraordinary items                                -             -
    Cumulative effect of change
      in accounting principle                          -             -
    Net income                                      226,771      199,992
    Dividends on preferred
        stock                                         6,167        7,004
    Net income applicable to
        common stockholders                    $    220,604      192,988
    Income before extraordinary
      items and cumulative effect
      of change in accounting
      principle per common share               $       1.32         1.17
    Net income per common share                $       1.32         1.17
    (a) Tax-equivalent.
    EARNINGS SUMMARY
                                                    1992          1992
     (In thousands except per share data)             4Q            3Q
     Net interest income (a)                         689,376     656,720
    Provision for loan losses                        79,304       83,297
    Net interest income after
        provision for loan losses (a)               610,072      573,423
    Securities available for sale
        transactions                                 (1,286)      17,278
    Investment security
        transactions                                    769        1,435
    Noninterest income                              255,196      255,252
    Noninterest expense                             773,882      594,097
    Income before income taxes,
      extraordinary items and
      cumulative effect of change
      in accounting principle (a)                    90,869      253,291
    Income taxes                                     42,666       65,712
    Tax-equivalent adjustment                        24,416       25,953
    Income before extraordinary
      items and cumulative effect
      of change in accounting principle              23,787      161,626
    Extraordinary items                              (6,351)         582
    Cumulative effect of change
      in accounting principle                          -             -
    Net income                                       17,436      162,208
    Dividends on preferred
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:Jul 15, 1993
Words:1785
Previous Article:THREE YOUNG WOMEN CHANGE AMERICAN CITY'S VIEWS ON NIGHTCLUBBING
Next Article:GM SIGNS AGREEMENT TO OFFER NATURAL GAS/GASOLINE VEHICLES FOR 1994
Topics:


Related Articles
OLD KENT FIRST-QUARTER EARNINGS UP BY 25 PERCENT
IBM'S FIRST-QUARTER REVENUE, EARNINGS DECLINE FROM 1992 LEVELS
FIRST FIDELITY DECLARES REGULAR COMMON DIVIDEND OF $.37 PER SHARE
UNION PACIFIC CORPORATION REPORTS FIRST QUARTER RESULTS
MID-CITCO INCORPORATED REPORTS RECORD EARNINGS FOR THE SECOND QUARTER
FIRST FIDELITY DECLARES REGULAR COMMON DIVIDEND OF $.42 PER SHARE
First Union's Operating Earnings Increase 19% To $6.31 Per Share
First Union's Earnings Increase To A Record $1.67 Per Share, Up 11%
First Union Reports Record Earnings, Up 13% To 87 Cents Per Share

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters