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HARRIS BANKCORP EARNINGS

 CHICAGO, Oct. 21 /PRNewswire/ -- Harris Bankcorp today announced earnings of $29,025,000 for the third quarter, resulting in record net income of $92,622,000 for the first nine months of the year, up 12 percent from $82,487,000 in the comparable 1992 period. Alan G. McNally, chief executive officer, attributed the earnings growth primarily to reduced noninterest expenses and a lower provision for credit losses. Third quarter net income was down 12 percent from the record quarter a year ago when results were enhanced by exceptionally strong foreign exchange revenues.
 In the first nine months, fully taxable equivalent net interest income decreased by $14.3 million or 4 percent from the same nine-month period in 1992, reflecting both a reduction in net interest margin from 4.18 pecent to 4.10 percent and a 2 percent decline in average earning assets. Noninterest income advanced $6.0 million or 2 percent. In the current period, profits from securities and money market trading activities rose $11.1 million. Net gains from sales of investment securities amounted to $7.6 million compared to $1.7 million in the prior year. Gains of $15.8 million from sales of LDC claims were recorded in 1992.
 Year-to-date noninterest expenses were down $12.9 million or 3 percent from the comparable 1992 period. Prior year's expeneses included a special $11.8 million charge for the writedown of land and related pre-construction expenditures originally capitalized in connection with the previously planned construction of a new operations center.
 The provision for credit losses declined by $12.7 million or 22 percent from a year ago, while net charge-offs were down by approximately $8 million. Income tax expense rose by $16 million, primarily because of higher pretax income and the recognition of AMT credit carryforwards during 1992.
 For the first nine months of the year, the annualized returns on average stockholder's equity and assets were 13.06 percent and .95 percent, respectively, compared to 12.50 percent and .83 percent in 1992.
 As previously noted, earnings for the third quarter were $29,025,000, down from $32,803,000 a year earlier. Third quarter net interest income on a fully taxable equivalent basis was $115.5 million, down slightly from $116.1 million in 1992's third quarter. Average earning assets rose 4 percent to $11.35 billion from $10.94 billion in 1992. Net interest margin declined to 4.06 percent from 4.24 percent in the same quarter last year, reflecting competitive market conditions and a relative decline in higher-yielding earning assets.
 Noninterest income advanced 3 percent over the same quarter last year to $82.2 million. Trust, cash management, and charge card revenues increased from the prior year while foreign exchange income declined significantly from an outstanding 1992 third quarter. The corporation also recognized non-recurring gains during the current period totaling approximately $5 million.
 Noninterest expenses rose 5 percent in the quarter to $138.7 million. Occupancy costs wer higher compared to a year ago when the corporation benefitted from reversals of prior real estate tax accruals.
 Income tax expese decreased by $1.0 million during the current quarter reflecting lower pretax income and changes occurring as a result of recent tax legislation.
 The third quarter 1993 provision for credit losses was $15.4 million, virtually unchanged from the prior year's quarter. Net loan charge-offs during the current quarter were $15.8 million, down from $17.7 million one year ago. This decrease resulted from lower write- offs in both the charge card and commercial loan portfolios.
 On Sept. 30, 1993, the allowance for possible credit losses was $135.1 million, equal to 1.90 percent of total loans outstanding, compared with $134.5 million or 1.86 percent of loans at the end of the 1992 third quarter.
 Nonperforming assets on Sept. 30, 1993, totaled $172.3 million, or 2.4 percent of total loans, up temporarily compared to $158.8 million or 2.2 percent of loans one year earlier and also up from $141.9 million or 2.0 percent, at June 30, 1993. The increase in nonperforming assets primarily resulted from the placement of one large commercial credit on nonaccrual status. This credit was substantially paid down subsequent to Sept. 30, 1993, at which time the level of nonperforming assets was approximately the same as at June 30, 1993.
 At Sept. 30, 1993, equity capital of Harris Bankcorp amounted to $976 million versus $919 million one year earlier. The increase resulted from earnings for the prior twelve months, less dividends of $66 million. Harris Bankcorp's regulatory capital leverage ratio was 7.30 percent for the third quarter of 1993 compared to 6.99 percent in the same quarter of 1992.
 The annualized returns on average stockholder's equity and assets were 11.97 percent and .88 percent, respectively, in the current quaerter compared to returns of 14.50 percent and 1.02 percent a year earlier.
 NOTE: Consolidated Earnings Hightlights Attached.
 HARRIS BANKCORP, INC.
 CONSOLIDATED EARNINGS HIGHLIGHTS
 (in thousands, except ratios and per share data)
 NINE MONTHS ENDED SEPT. 30
 1993 1992 Change
 Net interest income $ 327,138 $ 334,387 - 2%
 Net interest income
 (fully taxable equivalent) 346,588 360,904 - 4
 Provision for credit losses 46,255 58,965 -22
 Noninterest income 253,077 247,091 + 2
 Noninterest expenses 410,062 422,961 - 3
 Net income 92,622 82,487 +12
 Net income per share 13.89 12.37 +12
 Return on average assets .95% .83%
 Return on average equity 13.06% 12.50%
 QUARTER ENDED SEPT. 30
 1993 1992 Change
 Net interest income $ 108,252 $ 109,471 - 1%
 Net interest income
 (fully taxable equivalent) 115,524 116,100 -
 Provision for credit losses 15,450 15,410 -
 Noninterest income 82,218 79,715 + 3
 Noninterest expenses 138,708 132,711 + 5
 Net income 29,025 32,803 -12
 Net income per share 4.35 4.92 -12
 Return on average assets .88% 1.02%
 Return on average equity 11.97% 14.50%
 CONSOLIDATED STATISTICS
 (in millions)
 AT SEPT. 30
 1993 1992 Change
 Money market assets $ 1,251 $ 817 +53
 Loans, net of unearned income 7,106 7,210 - 1
 Investment securities 3,111 2,645 +18
 Deposits 8,915 8,516 + 5
 Stockholder's equity 976 919 + 6
 Total assets 13,329 12,468 + 7
 YEAR TO DATE
 DAILY AVERAGE BALANCES
 1993 1992 Change
 Money market assets $ 1,238 $ 1,005 +23
 Loans, net of unearned income 7,002 7,371 - 5
 Investment securities 2,920 2,843 + 3
 Deposits 9,261 8,871 + 4
 Stockholder's equity 948 881 + 8
 Total assets 13,027 13,342 - 2
 -0- 10/21/93
 /CONTACT: Paul Skubic, 312-461-2220, or Mary Ullrich, 312-461-6905, both of Harris Bankcorp/


CO: Harris Bankcorp ST: Illinois IN: FIN SU: ERN

DH -- NY044 -- 5208 10/21/93 12:19 EDT
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Date:Oct 21, 1993
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