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FIRST UNION REPORTS RECORD FIRST QUARTER 1992 EARNINGS

 FIRST UNION REPORTS RECORD
 FIRST QUARTER 1992 EARNINGS
 CHARLOTTE, N.C., April 9 /PRNewswire/ -- First Union Corporation (NYSE: FTU FTUpr) today reported record earnings for the first quarter of 1992 of $98 million, a 34 percent increase from $73 million in the same period a year ago. On a per common share basis, earnings increased to 81 cents from 67 cents a year ago.
 "We're especially pleased with the first quarter's record earnings. Our efforts to build earnings potential by controlling costs and increasing fee income are producing results," said Edward E. Crutchfield Jr., First Union Corporation chairman and chief executive officer.
 Key factors in First Union's first quarter performance were continued improvement in the net interest margin and in credit quality trends, which resulted in a lower loan loss provision. Noninterest income related to deposit accounts and capital management and mortgage banking operations also contributed to earnings.
 "This performance reflects the positive results from the Southeast Banks transaction, which are better than expected and ahead of schedule," Crutchfield said. "The major cost savings we expect from this transaction should further contribute to earnings in the second half of this year."
 Also today, First Union sold 9.775 million shares of common stock at $34.75 per share, less an underwriting discount, which resulted in $330 million being added to capital. The proceeds of this offering will be used to redeem the remaining $100 million 11 percent preferred stock issued to the FDIC in connection with the September 1991 Southeast Banks purchase accounting transaction and to further strengthen First Union's capital base.
 Deposits at March 31, 1992, increased 4 percent to $38.2 billion from year-end 1991, primarily because of savings bank deposits acquired from the Resolution Trust Corporation.
 Net loans increased slightly to $32.2 billion from $32.1 billion at year-end 1991. Total stockholders' equity increased 3 percent to $3.20 billion at March 31, 1992, from $3.11 billion at year-end 1991.
 Nonperforming assets declined to $1.180 billion at March 31, 1992, from $1.204 billion at year-end 1991. The loan loss provision was $83 million in the first quarter of 1992, compared with $97 million in the first quarter a year ago. First Union's loan loss allowance was $646 million at March 31, 1992.
 First Union Corporation operates 1,018 banking offices in Florida, North Carolina, South Carolina, Georgia and one banking office in Tennessee, and 207 nonbanking offices in 36 states.
 FIRST UNION CORPORATION
 (Unaudited)
 FINANCIAL HIGHLIGHTS
 Three Months Ended
 (In thousands except March 31,
 per share data) 1992 1991
 Net income $ 107,859 80,842
 Dividends on preferred stock 9,661 7,563
 Net income applicable to
 common stockholders $ 98,198 73,279
 Net income per common share $ .81 .67
 Average common shares, net 121,413 109,206
 Common stockholders' equity $ 2,812,827 2,308,566
 Total stockholders' equity 3,196,867 2,602,074
 Book value per common share $ 23.09 21.11
 Actual common shares, net 121,844 109,352
 Common stock period-end
 price $ 35.750 22.125
 Preferred stock period -
 end price $ 52.250 46.500
 EARNINGS SUMMARY
 (In thousands except 1992 1991
 per share data) 1Q 4Q
 Net interest income (a) $ 471,951 460,014
 Provision for loan losses 83,021 125,271
 Net interest income after
 provision for
 loan losses (a) 388,930 334,743
 Investment security
 transactions (5,177) 27,450
 Noninterest income 220,620 238,340
 Noninterest expense 435,818 458,551
 Income before income taxes (a) 168,555 141,982
 Income taxes 37,612 28,496
 Tax-equivalent adjustment 23,084 24,561
 Net income 107,859 88,925
 Dividends on preferred
 stock 9,661 10,677
 Net income applicable to
 common stockholders $ 98,198 78,248
 Net income per common share $ .81 .66
 (a) Tax-equivalent.
 FINANCIAL HIGHLIGHTS
 (In thousands except Percent
 per share data) Increase
 Net income 33.4 pct
 Dividends on preferred stock 27.7
 Net income applicable to
 common stockholders 34.0 pct
 Net income per common share 20.9 pct
 Average common shares, net 11.2
 Common stockholders' equity 21.8
 Total stockholders' equity 22.9
 Book value per common share 9.4
 Actual common shares, net 11.4
 Common stock period-end
 price 61.6
 Preferred stock period -
 end price 12.4 pct
 EARNINGS SUMMARY
 (In thousands except 1991
 per share data) 3Q 2Q
 Net interest income (a) 387,302 372,024
 Provision for loan losses 145,681 113,733
 Net interest income after
 provision for
 loan losses (a) 241,621 258,291
 Investment security
 transactions 50,313 5,690
 Noninterest income 184,319 168,826
 Noninterest expense 352,597 322,855
 Income before income taxes (a) 123,656 109,952
 Income taxes 20,547 9,624
 Tax-equivalent adjustment 27,761 26,706
 Net income 75,348 73,622
 Dividends on preferred
 stock 7,693 7,292
 Net income applicable to
 common stockholders 67,655 66,330
 Net income per common share .61 .61
 (a) Tax-equivalent.
 EARNINGS SUMMARY
 1Q '92
 (In thousands except 1991 vs.
 per share data) 1Q 1Q '91
 Net interest income (a) 363,129 30.0 pct
 Provision for loan losses 96,898 (14.3)
 Net interest income after
 provision for
 loan losses (a) 266,231 46.1
 Investment security
 transactions 29,309 (117.7)
 Noninterest income 154,982 42.4
 Noninterest expense 322,891 35.0
 Income before income taxes (a) 127,631 32.1
 Income taxes 18,849 99.5
 Tax-equivalent adjustment 27,940 (17.4)
 Net income 80,842 33.4
 Dividends on preferred
 stock 7,563 27.7
 Net income applicable to
 common stockholders 73,279 34.0 pct
 Net income per common share .67 20.9 pct
 (a) Tax-equivalent.
 OTHER FINANCIAL DATA
 1992 1991
 (Dollars in thousands) 1Q 4Q 3Q
 Return on average assets (a) .94 pct .75 .74
 Return on average common
 equity (a) 14.26 11.80 11.19
 Net interest margin 4.66 4.46 4.29
 Net charge-offs as pct of
 average loans, net (a) .87 1.34 1.84
 Allowance as pct of loans,
 net 2.01 1.97 1.93
 Allowance as pct of nonaccrual
 and restructured loans 80 75 71
 Allowance as pct of
 nonperforming assets 55 pct 53 50
 Net charge-offs $ 68,830 107,860 122,761
 Nonperforming assets (b)
 Commercial nonaccrual $ 389,650 394,590 398,156
 Real estate nonaccrual 410,850 387,445 453,032
 Total nonaccrual 800,500 782,035 851,188
 Restructured loans 8,009 57,386 38,003
 Foreclosed properties 371,732 364,931 376,874
 Total nonperforming
 assets $ 1,180,241 1,204,352 1,266,065
 As pct of loans, net and
 foreclosed properties 3.62 pct 3.71 3.84
 Segregated loss-sharing
 nonperforming assets
 Nonaccrual loans $ 654,512 665,975 629,889
 Foreclosed properties 30,785 28,857 3,559
 Total 685,297 694,832 633,448
 Less FDIC
 loss-sharing (c) (582,502) (590,607) (538,431)
 Total $ 102,795 (d) 104,225 95,017
 (a) Annualized.
 (b) Excludes nonperforming assets related to the Southeast Banks
 acquisition.
 (c) Represents 85 percent of total segregated assets.
 (d) Allowance for segregated assets losses amounted to $48,224,000
 at March 31, 1992.
 This amount is not included in the allowance for loan losses.
 OTHER FINANCIAL DATA
 1991
 (Dollars in thousands) 2Q 1Q
 Return on average assets (a) .75 .82
 Return on average common
 equity (a) 11.46 13.01
 Net interest margin 4.23 4.06
 Net charge-offs as pct of
 average loans, net (a) 1.14 .79
 Allowance as pct of loans,
 net 2.02 1.89
 Allowance as pct of nonaccrual
 and restructured loans 60 58
 Allowance as pct of
 nonperforming assets 45 46
 Net charge-offs 74,593 51,301
 Nonperforming assets (b)
 Commercial nonaccrual 356,708 314,110
 Real estate nonaccrual 511,595 532,685
 Total nonaccrual 868,303 846,795
 Restructured loans 9,457 12,527
 Foreclosed properties 288,520 215,448
 Total nonperforming
 assets 1,166,280 1,074,770
 As pct of loans, net and
 foreclosed properties 4.40 4.07
 Segregated loss-sharing
 nonperforming assets
 Nonaccrual loans - -
 Foreclosed properties - -
 Total - -
 Less FDIC
 loss-sharing (c) - -
 Total - -
 (a) Annualized.
 (b) Excludes nonperforming assets related to the Southeast Banks
 acquisition.
 (c) Represents 85 percent of total segregated assets.
 (d) Allowance for segregated assets losses amounted to $48,224,000
 at March 31, 1992.
 This amount is not included in the allowance for loan losses.
 AVERAGE BALANCE SHEET SUMMARY
 1992 1991
 (In thousands) 1Q 4Q
 Loans, net $31,814,185 32,265,153
 Earning assets 40,492,326 41,329,158
 Total assets 46,059,978 46,792,371
 Noninterest-bearing
 deposits 6,308,429 6,126,922
 Consumer time deposits 26,728,915 27,356,901
 Other time deposits 2,867,338 3,113,255
 Common stockholders' equity 2,769,055 2,630,932
 Total stockholders' equity $ 3,153,096 3,042,690
 INTANGIBLE ASSETS
 (In thousands)
 Intangible assets
 Goodwill $ 644,508 653,085
 Deposit base premium 154,850 160,712
 Other 11,131 11,185
 Total $ 810,489 824,982
 Mortgage servicing rights $ 146,203 146,295
 Credit card premium $ 54,701 62,670
 AVERAGE BALANCE SHEET SUMMARY
 1991
 (In thousands) 3Q 2Q
 Loans, net 26,651,382 26,105,258
 Earning assets 36,218,151 35,133,586
 Total assets 40,565,612 39,325,366
 Noninterest-bearing
 deposits 4,695,296 4,562,454
 Consumer time deposits 21,181,850 19,196,563
 Other time deposits 3,389,092 3,864,697
 Common stockholders' equity 2,398,508 2,320,677
 Total stockholders' equity 2,690,700 2,606,278
 INTANGIBLE ASSETS
 (In thousands)
 Intangible assets
 Goodwill 660,505 667,923
 Deposit base premium 167,621 143,194
 Other 40,214 4,398
 Total 868,340 815,515
 Mortgage servicing rights 144,122 133,450
 Credit card premium 61,998 21,240
 AVERAGE BALANCE SHEET SUMMARY
 1Q '92
 1991 vs
 (In thousands) 1Q 1Q '91
 Loans, net 26,083,675 22.0 pct
 Earning assets 35,672,410 13.5
 Total assets 39,903,324 15.4
 Noninterest-bearing
 deposits 4,419,478 42.7
 Consumer time deposits 18,926,998 41.2
 Other time deposits 3,240,730 (11.5)
 Common stockholders' equity 2,284,920 21.2
 Total stockholders' equity 2,583,564 22.0 pct
 INTANGIBLE ASSETS
 (In thousands)
 Intangible assets
 Goodwill 675,342
 Deposit base premium 149,311
 Other 4,484
 Total 829,137
 Mortgage servicing rights 116,836
 Credit card premium 11,746
 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 Three Months Ended
 March 31,
 (In thousands) 1992 1991
 Interest income:
 Interest and fees on loans $ 710,820 655,723
 Interest and dividends on
 investment securities 133,824 176,433
 Other interest income 21,043 24,667
 Total interest income 865,687 856,823
 Interest expense:
 Interest on deposits 328,205 353,864
 Interest on borrowings 88,615 167,770
 Total interest expense 416,820 521,634
 Net interest income 448,867 335,189
 Provision for loan losses 83,021 96,898
 Net interest income after
 provision for loan losses 365,846 238,291
 Noninterest income:
 Service charges on deposit
 accounts 81,215 52,698
 Mortgage banking income 31,437 20,393
 Capital management income 38,004 25,308
 Investment security
 transactions (5,177) 29,309
 Sundry income 69,964 56,583
 Total noninterest income 215,443 184,291
 Noninterest expense:
 Personnel expense 203,532 158,318
 Occupancy and equipment 82,663 61,711
 Sundry expense 149,623 102,862
 Total noninterest
 expense 435,818 322,891
 Income before income taxes 145,471 99,691
 Income taxes 37,612 18,849
 Net income 107,859 80,842
 Dividends on preferred stock 9,661 7,563
 Net income applicable to
 common stockholders $ 98,198 73,279
 CONDENSED CONSOLIDATED BALANCE SHEETS
 March 31,
 (In thousands) 1992 1991
 Assets
 Cash and due from banks $ 2,469,496 1,640,026
 Interest-bearing balances in
 other banks 896,677 217,382
 Federal funds sold and
 securities purchased under
 resale agreements 284,712 334,916
 Trading account assets 510,197 225,348
 Investment securities 7,244,360 8,245,642
 Loans, net of unearned income
 ($325,330 in 1992 and
 $296,004 in 1991) 32,218,102 26,185,351
 Less: Allowance for loan
 losses (646,485) (495,716)
 Loans, net 31,571,617 25,689,635
 Mortgage servicing rights 146,203 116,836
 Credit card premium 54,701 11,746
 Other intangible assets 810,489 829,137
 Segregated assets (net of
 allowance of $48,224
 in 1992) 637,073 -
 Other assets 3,458,568 2,305,031
 Total assets $48,084,093 39,615,699
 Liabilities and Stockholders' Equity
 Deposits 38,183,289 27,451,771
 Short-term borrowings 4,027,342 7,399,761
 Other liabilities 608,729 884,344
 Long-term debt 2,067,866 1,277,749
 Total liabilities 44,887,226 37,013,625
 Stockholders' equity 3,196,867 2,602,074
 Total liabilities
 and stockholders'
 equity $48,084,093 39,615,699
 -0- 4/9/92
 /CONTACT: Media Contact-Jeep Bryant, (Work) 704-374-2957 or (Home) 704-335-0415, or Investor Contact-Barbara Massa, (Work) 704-374-2555, or Maggie Norris (Work) 704-374-4353, all of First Union Corporation/
 (FTU FTUpr) CO: First Union Corporation ST: North Carolina IN: FIN SU: ERN


CM -- CH003 -- 6814 04/09/92 13:19 EDT
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