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FLEET FINANCIAL GROUP REPORTS FIRST QUARTER EARNINGS OF $106 MILLION

 PROVIDENCE, R.I., April 21 /PRNewswire/ -- Fleet Financial Group (NYSE: FLT) today reported net income of $106.3 million, or 66 cents per fully diluted share, for the quarter ended March 31, up 113 percent from the $50.4 million, or 31 cents per fully diluted share, in the first quarter of 1992.
 Terrence Murray, chairman and chief executive officer, said, "Clearly, we are delighted that our ongoing efforts, along with an improving economy, have led to such favorable results. This is the first quarter in over three years -- since 1989's fourth quarter -- that all of our operating subsidiaries have been profitable."
 Murray said the solid quarterly performance was driven by a strong net interest margin, which increased to more than 5 percent; reduced asset quality costs, and cost savings resulting from the completion of the consolidation of the former Bank of New England banking franchise into Fleet's operations.
 Continuing the positive trend noted over the last five quarters, non performing assets were reduced $46 million to $944 million at March 31, 1993. Nonperforming assets have been reduced by over $650 million, or 41 percent, from the $1.6 billion reported a year ago.
 Earnings by Group
 The New England Banking Group contributed $73 million to the corporation's first quarter earnings, compared to $12.5 million in the first three months of 1992. Fleet's Connecticut bank led the Group's quarterly results with earnings of $31.6 million, while the Massachusetts bank contributed $25.3 million to first quarter results.
 The New York Banking Group earned $26.2 million in the first quarter, compared to $20.2 million in the first quarter of 1992. The Long Island bank, which has been affected throughout the last two years by asset quality concerns, continued to reduce its level of nonperforming assets and earned $2.4 million in the first quarter.
 The Financial Services Group earned $29.2 million in the first quarter, compared to $35.9 million in 1992's first quarter. Fleet Mortgage contributed $21.6 million to earnings.
 Net Income Summary
 Net interest income totaled $513 million in the first quarter, compared to $472 million in the first quarter of 1992. The net interest margin for the first three months of 1993 was 5.03 percent, vs. 4.60 percent in the first quarter of 1992, due to a favorable interest rate environment and a reduced level of nonperforming assets.
 Credit loss provisions for the first quarter 1993 were $85 million, compared to $111 million in 1992's first quarter, while net chargeoffs for the quarter amounted to $80 million, compared to $111 million in the first quarter of 1992.
 Noninterest income for the first quarter was $324 million, compared to $278 million for the first three months of 1992. On an after-tax basis, gains on the sale of securities totaled $11 million and $6 million, respectively.
 Noninterest expense in the first quarter totaled $557 million, compared to the $543 million reported for the first quarter of 1992 and $632 million in the fourth quarter. The increase primarily reflects the effect of six acquisitions made during 1992.
 Balance Sheet
 Total assets at March 31, 1993 were $45 billion, while total loans and leases were $26 billion at the same date. Even though nonperforming assets were reduced, the corporation again strengthened its credit loss reserves. The reserves stood at $1.033 billion at March 31, 1993.
 Fleet Financial Group's equity was $3.5 billion, up $900 million in the
last 12 months, and its e quity to assets ratio as of March 31 was


7.75 percent.
 Murray noted that the corporation adopted two new accounting standards during the quarter, one related to taxes and the other to post-retirement benefits. Neither had a significant impact on consolidated results.
 Referencing the common stock offering in February that resulted in the sale of approximately 12.3 million shares of common stock and raised $391 million, Murray stated, "the corporation is well capitalized and positioned to take advantage of any number of growth opportunities that may develop in the months ahead."
 Fleet Financial Group is a diversified financial services company listed on the New York Stock Exchange (NYSE: FLT) with approximately 1,200 offices nationwide. Its lines of business include commercial and consumer banking, mortgage banking, consumer finance, asset-based lending, investment management, and student loan processing.
 FLEET FINANCIAL GROUP
 Financial Highlights
 Three Months Ended
 March 31, March 31,
 1993 1992
 For The Period (dollars in millions)
 Net income $106 $50
 Net interest income (a) 513 472
 Provisions for credit losses 85 111
 Per Common Share
 Fully diluted earnings $.66 $.31
 Market value (period-end) 35.325 27.325
 Cash dividends declared 0.225 0.20
 Book value (period-end) 21.12 18.30
 At Quarter-End (dollars in millions)
 Assets $44,893 $45,234
 Deposits 31,057 34,174
 Total stockholders' equity 3,480 2,562
 Asset Quality (dollars in millions)
 Nonperforming assets $944 $1,600
 Nonperforming assets as a
 percent of loans, leases, ISF
 and OREO 3.58 percent 5.83 percent
 Nonperforming loans to
 period-end loans 2.70 3.75
 Reserve for credit losses to
 period-end loans and leases 3.95 3.80
 Reserve For Credit Losses (dollars in millions)
 Beginning reserve for credit
 losses $1,029 $1,021
 Provision for credit losses 85 111
 Gross charge-offs 100 123
 Recoveries 20 12
 Acquisitions, other (1) 0
 Ending reserve for credit
 losses 1,033 1,021
 Operating and Capital Ratios
 Return on average common
 equity 15.24 percent 7.93 percent
 Return on average assets 0.96 0.45
 Net interest margin 5.03 4.60
 Total equity/assets
 (period-end) 7.75 5.66
 Tier 1 risk-based capital
 ratio (estimated) 11.45 10.16
 Total risk-based capital
 ratio (estimated) 17.04 14.39
 ----
 NOTE (a): Fully taxable equivalent
 Fleet Financial Group
 Consolidated Income Statement
 (Dollars in thousands)
 Three months ended March 31,
 1993 1992
 Interest income $813,978 $870,989
 Interest expense 309,356 404,875
 Net interest income 504,622 466,114
 Provisions for credit losses 84,930 111,206
 Net interest income after
 provisions for credit losses 419,692 354,908
 Noninterest Income:
 Mortgage banking 116,809 97,994
 Service charges on deposits 43,076 38,177
 Trust fees 42,435 41,002
 Securities held for sale gains 19,038 10,292
 Student loan processing fees 11,257 17,105
 Service charges, fees,
 and commissions 9,340 12,021
 Merchant discount fees 5,746 5,314
 Insurance 5,335 4,669
 Brokerage fees and commissions 5,151 5,876
 Banking commissions 5,039 5,707
 Securities trading 4,930 4,747
 Foreign exchange/interest rate
 products 201 (3,999)
 Other 55,156 39,006
 Total noninterest income 323,513 277,911
 Noninterest Expense:
 Employee compensation 266,401 247,294
 Occupancy 43,546 44,135
 Equipment 31,664 30,723
 Acquired servicing rights
 amortization 27,531 24,974
 OREO expense 20,893 40,964
 FDIC assessment 20,616 19,591
 Other professional fees 15,516 10,108
 Marketing 12,762 12,861
 Core deposit and goodwill
 amortization 12,481 10,774
 Printing and mailing 11,649 11,632
 Telephone 9,828 10,056
 Legal 9,357 7,271
 Charge card related fees 8,748 4,958
 Travel and entertainment 8,011 6,494
 Office supplies 7,946 8,271
 Credit and collection 3,990 3,874
 Other 46,128 49,380
 Total noninterest expense 557,067 543,360
 Income before income taxes 186,138 89,459
 Applicable income taxes 74,720 39,045
 Net income before minority
 interest 111,418 50,414
 Minority interest (after-tax) 5,166 ---
 Net income $106,252 50,414
 Net income applicable to common
 stock $99,334 $43,489
 Fleet Financial Group
 Consolidated Balance Sheet
 (Dollars in millions)
 3/31/93 12/31/92 3/31/92
 Assets:
 Cash, due from banks and
 interest-bearing deposits $1,987 $2,501 $2,352
 Federal funds sold and
 securities puchased under
 agreements to resell 5 536 154
 Securities held for sale
 (market value $11,852 at March 31,
 1993, $11,270 at Dec. 31, 1992
 and $11,600 at March 31, 1992) $11,215 10,857 11,389
 Portfolio securities
 (Market value: $1,811 at March 31,
 1993, $1,793 at Dec. 31, 1992 and
 $99 at March 31, 1992) 1,778 1,803 99
 Loans and leases 26,134 26,647 26,854
 Reserves for credit losses (1,033) (1,029) (1,021)
 Mortgages held for resale 1,292 2,087 1,894
 Premises and equipment 671 654 619
 Acquired servicing rights, 568 548 532
 Other intangible assets 350 360 331
 Foreclosed property and
 repossessed equipment 237 241 594
 Accrued interest receivable 325 324 359
 Trading account assets 90 127 65
 Other assets 1,274 1,283 1,013
 Total assets $44,893 $46,939 $45,234
 Liabilities:
 Deposits:
 Demand $5,604 $6,483 $5,552
 Regular savings, NOW, money market 15,711 15,783 14,803
 Time 9,742 10,469 13,819
 Total deposits 31,057 32,735 34,174
 Federal funds purchased and
 securities sold under
 agreements to repurchase 3,224 2,881 3,146
 Short-term borrowings 2,871 4,613 1,590
 Accrued expenses and other
 liabilities 1,098 983 874
 Long-term debt 3,163 2,717 2,605
 Total liabilities 41,413 43,929 42,389
 Dual convertible preferred stock 0 0 283
 Stockholders' Equity:
 Preferred stock 604 604 322
 Common stock 2,876 2,406 2,240
 Total stockholders' equity 3,480 3,010 2,562
 Total liabilities and
 stockholders' equity $44,893 $46,939 $45,234
 Fleet Financial Group
 Consolidated Average Balance Sheet
 Interest Earned/Paid And Rates
 (Dollars in thousands)
 THREE MONTHS ENDED
 March 31, 1993 March 31, 1992
 Average Rate Average Rate
 Balance Balance
 ASSETS:
 Interest-bearing deposits $32,272 2.90 pct $22,034 3.10 pct
 Federal funds sold/securities
 puchased under agreements to
 resell 95,575 3.00 pct 239,838 4.00 pct
 Trading account assets 79,642 3.76 pct 93,279 3.06 pct
 Securities held for sale 10,502,098 7.71 pct 11,158,791 8.07 pct
 Portfolio securities 2,175,302 6.12 pct 100,369 7.31 pct
 Loans and leases:
 Banking subsidiaries 22,665,173 8.21 pct 23,158,902 8.81 pct
 Other subsidiaries 3,768,671 11.32 pct 3,696,121 11.66 pct
 Total loans and leases 26,433,844 8.57 pct 26,855,023 9.21 pct
 Mortgages held for resale 1,448,997 7.38 pct 1,641,987 8.44 pct
 Foreclosed property and
 repossessed equipment 245,222 --- 563,861 ---
 Total interest-earning
 assets 41,012,952 8.13 pct 40,675,182 8.61 pct
 Accrued interest receivable 320,730 --- 339,252 ---
 Reserves for credit losses(1,042,295) --- (1,046,971) ---
 Other assets 4,773,325 --- 4,705,213 ---
 Total assets $45,064,712 --- $44,672,676 ---
 Liabilities and Stockholders' Equity:
 LIABILITIES:
 Deposits:
 Savings $15,538,268 2.44pct $14,441,292 3.47 pct
 Time 9,993,526 4.52pct 12,785,387 5.95 pct
 Total interest-bearing
 deposits 25,531,794 3.25pct 27,226,679 4.64 pct
 Short-term borrowings 6,137,904 3.98pct 4,439,253 4.97 pct
 Long-term debt 2,888,012 6.22pct 2,589,152 5.61 pct
 Total interest-bearing
 liabilities 34,557,710 3.63pct 34,255,084 4.75 pct
 Net interest spread --- 4.50pct 6,420,098 3.86 pct
 Demand deposits and other
 noninterest-bearing time
 deposits 6,080,316 --- 6,762,757 ---
 Other liabilities 1,179,080 --- 841,963 ---
 Total liabilities 41,817,106 --- 41,859,804 ---
 Dual convertible preferred
 stock --- --- 283,000 ---
 Stockholders' Equity: 3,247,606 --- 2,529,872 ---
 Total liabilities and
 stockholders' equity $45,064,712 --- $44,672,676 ---
 Net interest margin --- 5.03pct --- 4.60 pct
 -0- 4/21/93
 /CONTACT: Robert W. Lougee, Jr., vice president, director corporate communications, 401-278-5879, or Bruce P. Crooks, 401-278- 6241; (media) Thomas L. Lavelle, 401-278-3003; (investors) Judith B. Ragge, 401-278-6444, of Fleet Financial Group/
 (FLT)


CO: Fleet Financial Group ST: Rhode Island, New York IN: FIN
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Date:Apr 21, 1993
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