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MAGNA GROUP, INC. REPORTS RESULTS

 ST LOUIS, April 20 /PRNewswire/ -- Magna Group, Inc. (NASDAQ-NMS: MAGI), the third-largest St. Louis-based bank holding company, today announced net income for the three months ended March 31, 1993 of $8.7 million, or 35 cents per common share (fully diluted), as compared with $5.6 million, or 28 cents per share, for the first quarter of 1992. Magna's net income for the first quarter of 1993 represents a 55.8 percent increase over the same period of 1992. The first quarter of 1992 included a one-time $1.9 million gain resulting from the adoption of FAS 109, "Accounting for Income Taxes."
 Magna's net interest margin increased in the first quarter of 1993 to 4.72 percent, compared with 4.33 percent in the first quarter of 1992, and 4.60 percent in the fourth quarter of 1992. Return on assets for the first quarter of 1993 was .97 percent compared with .60 percent in the same period one year ago.
 Magna reduced non-performing loans to $41.2 million at March 31, 1993, a decrease of $6.3 million, or 13.2 percent, since year-end 1992. This reduction, combined with a $.8 million net increase in the reserve for loan losses, increased the coverage of non-performing loans to 94.6 percent from 80.4 percent at year-end 1992. Foreclosed property was reduced to $27.5 million at March 31, 1993 from $29.0 million at year- end 1992. Total non-performing assets were reduced 10.1 percent since year-end 1992.
 William S. Badgley, chairman of the board and chief executive officer, stated, "We are very pleased to report Magna's strong first quarter performance, particularly continuing improvements in the net interest margin, asset quality and the coverage ratio. These results underscore Magna's strong core operations and the success of our ongoing efforts to increase profitability through expense savings and asset quality improvement."
 Strong Operating Results
 Magna's first quarter results for 1993 compared with 1992 included a 4.9 percent increase in net interest income; a 43.9 percent reduction in the provision for loan losses; a 7.2 percent increase in non-interest income; and a 6.6 percent reduction in total non-interest expense. For the first quarter of 1993, net interest income was $37.5 million compared with $35.7 million in the first quarter of 1992; the provision for loan losses was $3.9 million compared with $6.9 million; total non- interest income was $9.8 million compared with $9.2 million; and total non-interest expense was $31.9 million compared with $34.2 million.
 Asset Quality Improvement
 Magna's non-performing asset ratios reached their lowest levels since December 1990. At March 31, 1993, the ratio of non-performing loans to total loans was 1.84 percent, compared with 2.11 percent at year-end 1992 and 2.92 percent at March 31, 1992; and the ratio of non- performing assets to total loans plus foreclosed property was 3.04 percent; 3.35 percent and 3.64 percent.
 Magna has significantly reduced non-performing loans from March 31, 1992 to March 31, 1993. Non-performing loans decreased 41.4 percent, from $70.3 million to $41.2 million. Non-performing assets decreased 22.1 percent, from $88.2 million to $68.7 million.
 Strong Capital Ratios and Balance Sheet Totals
 Magna's book value per common share was $13.57 at March 31, 1993 compared with $12.83 at March 31, 1992. The leverage capital ratio improved to 8.89 percent compared with 6.08 percent.
 At March 31, 1993, total assets were $3.60 billion compared with $3.74 billion at March 31, 1992; loans were $2.23 billion compared with $2.41 billion; deposits were $3.10 billion compared with $3.28 billion; stockholders' equity was $327 million compared with $252 million.
 Ongoing Consolidation
 "We have been successful in our efforts to increase the efficiency of our company, as demonstrated by the ratio which measures our operating expense as a percent of total revenue," Badgley noted. "This ratio has improved dramatically from 73.3 percent for the first quarter of 1992 to 66.1 percent for the first quarter of this year.
 "We will continue our expense control programs and expect additional long-range cost efficiencies to result from further centralization and streamlined operations. Our consolidation strategies are aimed at building a more efficient delivery system for our products and services without compromising quality," he said.
 Magna has announced plans for the consolidation of its two banks in Missouri and the consolidation of its five banks in Illinois. The consolidations are pending regulatory approval and are expected to be completed in the second half of 1993.
 Sale of Subsidiary Banks
 Magna completed the sale of Landmark KCI Bank to an unaffiliated third party during the first quarter of 1993 for $1.2 million. Magna has reached a definitive agreement for the sale of Landmark Bank of Kansas City and expects to complete that sale, which is subject to regulatory approval, in the second half of 1993.
 Magna Group, Inc. operates 85 community banking locations in Illinois and Missouri, and is the third-largest bank holding company based in St. Louis. Within the greater St. Louis metropolitan area, Magna has 61 offices and approximately $2.7 billion in assets.
 MAGNA GROUP, INC.
 Comparative Selected Financial Data
 ($'s in thousands, except per share data)
 Period ended Three Months
 March 31 1993 1992 Pct. Change
 Income Statement Data:
 Net interest income $37,470 $35,721 4.9
 Provision for loan losses 3,857 6,881 (43.9)
 Securities transactions 317 - NM
 Non-interest Income 9,514 9,167 3.8
 Non-interest expense 31,936 34,182 (6.6)
 Income tax expense 2,825 166 1,601.8
 Income before cumulative effect
 of a change in acct. principle 8,683 3,659 137.3
 Effect of change in
 acct. principle - 1,915 NM
 Net income 8,683 5,574 55.8
 Common Shares:
 Period end primary 24,099 19,471 23.8
 Average fully diluted 25,253 20,540 22.9
 Per Common Share:
 Fully diluted net income $.35 $.28 25.0
 Book value 13.57 12.83 5.8
 Tangible book value 13.20 12.31 7.2
 Dividends .18 .17 5.9
 Ending Balance Sheet Data
 Assets $3,597,888 $3,737,882 (3.7)
 Loans, net of unearned
 income 2,233,759 2,406,689 (7.2)
 Securities 1,035,796 965,235 7.3
 Earning assets 3,305,190 3,437,470 (3.8)
 Reserve for loan losses 38,986 47,637 (18.2)
 deposits 3,099,284 3,284,026 (5.6)
 Debt 32,848 76,590 (57.1)
 Stockholders' equity 326,969 251,869 29.8
 Non-performing loans 41,203 70,309 (41.4)
 Foreclosed property 27,539 17,905 53.8
 Non-performing assets 68,742 88,214 (22.1)
 Average Balance Sheet Data
 Assets 3,627,998 3,739,899 (3.0)
 Loans, net of unearned
 income 2,242,133 2,438,537 (8.1)
 Securities 1,073,299 956,539 12.2
 Earning assets 3,333,016 3,463,419 (3.8)
 Deposits 3,124,781 3,279,579 (4.7)
 Debt 33,970 57,289 (40.7)
 Stockholders' equity 320,712 251,927 27.3
 Ratio Analysis
 Net interest margin (Pct) 4.72 4.33
 Non-interest expense as pct.
 of average assets (A) 3.48 3.52
 Net non-interest expense as
 pct.of average assets (B) 2.41 2.54
 Efficiency ratio (C) 66.11 73.30
 Return on average assets .97 .60
 Return on average total
 stockholders' equity 10.98 8.85
 Non-performing loan
 ratio (D) 1.84 2.92
 Non-performing asset
 ratio (E) 3.04 3.64
 Loan reserve as percent of
 non-performing loans 94.62 67.75
 Net loan charge-offs as pct.
 of average loans (F) .55 2.50
 Reserve for loan losses
 as percent of loans 1.75 1.98
 Leverage ratio 8.89 6.08
 (A) -- Excludes foreclosed property expense.
 (B) -- Excludes securities transactions and foreclosed property expense.
 (C) -- Non-interest expense divided by; FTE net interest income plus non-interest income.
 (D) -- Non-accrual loans, 90+ days past due loans and restructured loans to total loans.
 (E) Non-performing loans plus foreclosed property to total loans plus foreclosed property.
 (F) -- Net loan charge-offs annualized.
 NM - Not meaningful.
 Loan Portfolio Mix and Non-Performing Asset Analysis
 March 31, 1993
 Loans and Percent
 Foreclosed of
 Property Total
 Loans:
 Commercial,
 financial and
 agricultural $424,755 18.78
 Real Estate:
 Construction 76,870 3.40
 Commercial 770,549 34.08
 Residential 650,723 28.78
 Total real estate 1,498,142 66.26
 Consumer 310,862 13.75
 Restructured loans N/A N/A
 Total loans 2,233,759 98.78
 Foreclosed property 27,539 1.22
 Total 2,261,298 100.00
 Nonper- Percent
 forming of
 Assets Total
 Loans:
 Commercial,
 financial and
 agricultural $9,540 13.88
 Real estate:
 Construction 2,408 3.50
 Commercial 16,500 24.00
 Residential 8,984 13.07
 Total real estate 27,892 40.57
 Consumer 2,369 3.45
 Restructured loans 1,402 2.04
 Total loans 41,203 59.94
 Foreclosed property 27,539 40.06
 Total 68,742 100.00
 -0- 04/20/93
 /CONTACT: Mary Scholz, vice president of Magna Group, 314-963-2545/
 (MAGI)


CO: Magna Group, Inc. ST: Missouri IN: FIN
SU ERN


LD -- NY011 -- 7723 04/20/93 07:30 EDT
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