Printer Friendly

MELLON POSTS RECORD EARNINGS FOR 1991, STRONG RESULTS IN FOURTH QUARTER

 MELLON POSTS RECORD EARNINGS FOR 1991,
 STRONG RESULTS IN FOURTH QUARTER
 /EDITORS: The full text of Mellon Bank Corporation 1991 earnings follows. Highlights are:
 -- 1991 Net Income of $280 Million Best in Corporation's History;
 ROA of .96 Percent Best in More Than 20 Years
 -- Capital Strengthened Significantly During Year
 -- Acquisition of United Penn Bank Completed in Fourth Quarter
 -- Nonperforming Assets Flat in Fourth Quarter; Down Excluding
 Effect of Acquisition
 -- Reserve Now 113 Percent of Nonperforming Loans/
 PITTSBURGH, Jan. 16 /PRNewswire/ -- Mellon Bank Corporation (NYSE: MEL) today reported record net income of $280 million for 1991, compared with net income of $174 million, including a $74 million gain on the sale of the corporation's consumer finance subsidiary, in 1990. For the fourth quarter of 1991, net income was $72 million, compared with a net loss of $99 million in the fourth quarter of 1990.
 On a per common share basis, net income for 1991 was $4.66, up significantly from $2.83 in 1990. Net income per common share was $1.11 in the fourth quarter of 1991, compared with a loss of $2.52 per common share in the fourth quarter of 1990.
 "In 1991, we continued to realize the benefits of our sustained and focused effort to ensure Mellon's competitive strength in the banking industry of the 1990s," said Frank V. Cahouet, Mellon chairman, president and chief executive officer. "We are especially gratified to have achieved the best earnings performance in our 122-year history amid the difficult conditions that existed in the economy and in banking throughout the year. Our people have worked very hard and effectively over the past several years. We believe we now are positioned properly for continued success in this challenging environment."
 -- Full year 1991
 Compared with 1990, the corporation's 1991 results reflected increases in net interest revenue, service fee revenue, and trading revenue, as well as a lower provision for credit losses, offset in part by higher operating expense and a decrease in other revenue.
 Net interest revenue for the year increased to $974 million, up 12 percent from $867 million in 1990. Service fee revenue increased to $742 million, up 12 percent from $662 million in 1990. Trading revenue was $15 million for 1991, compared with $8 million in the prior year. Operating expense for 1991 was $1.264 billion, up 7 percent compared with $1.181 billion in the prior year.
 Other revenue in 1991 was $91 million and included $78 million in gains on the sale of investment securities. In 1990, other revenue was $152 million, including a $74 million gain on the sale of the corporation's consumer finance subsidiary, $52 million in dividends and fees from Grant Street National Bank, and $8 million in gains on the sale of investment securities.
 The provision for credit losses was $250 million in 1991, down from $315 million in 1990. Net credit losses were $229 million, compared with $405 million in 1990, when the corporation recorded $196 million in losses on loans to Lesser Developed Countries. The reserve as a percentage of nonperforming loans was 113 percent at Dec. 31, 1991, up from 100 percent at Dec. 31, 1990.
 Return on assets and return on common shareholders' equity were .96 percent and 15.80 percent, respectively, compared with .58 percent and 9.56 percent in 1990, including the gain on the sale of the corporation's consumer finance subsidiary.
 During 1991, the corporation's capital ratios improved markedly. common shareholders' equity to assets improved 111 basis points, to 5.61 percent at year-end; the Tier I capital ratio and the leverage capital ratio each improved by more than 130 basis points, to approximately 5.65 percent and 5.40 percent, respectively.
 -- Fourth quarter 1991
 Compared with the fourth quarter of 1990, the corporation's fourth quarter 1991 results reflected a sharply lower provision for credit losses, as well as increases in net interest revenue, service fee revenue, and trading and other revenue.
 Net interest revenue for the quarter increased to $258 million, up 11 percent from $233 million in the fourth quarter of 1990. Service fee revenue increased to $189 million, up 15 percent from $164 million in the prior year period. Trading revenue was $6 million, compared with $2 million in the fourth quarter of 1990. Other revenue was $44 million in the fourth quarter of 1991, including $39 million in gains on the sale of investment securities. In last year's fourth quarter, other revenue totaled $12 million, including $3 million in gains on the sale of investment securities. Operating expense for the fourth quarter was $343 million, compared with $335 million in the prior year period.
 The provision for credit losses was $75 million in the fourth quarter, down from $175 million in the prior year period. Net credit losses were $66 million, compared with $90 million in the fourth quarter of 1990. Nonperforming assets totaled $933 million at Dec. 31, 1991, essentially flat compared with $932 million at Sept. 30, 1991, despite the addition of $37 million in nonperforming assets from United Penn Bank.
 Return on assets and return on common shareholders' equity were .99 percent and 14.87 percent, respectively, in the fourth quarter.
 During the quarter, the corporation completed its acquisition of United Penn Bank from Midlantic Corporation for approximately $88 million. At the time of purchase by Mellon, United Penn had assets of $1.5 billion and deposits of $1.3 billion, and operated 33 branch offices in 6 northeastern Pennsylvania counties. With the completion of this purchase, Mellon now has a significant presence in six of the state's seven largest population centers and serves 34 of Pennsylvania's 67 counties.
 With assets of approximately $30 billion, Mellon Bank Corporation is a major superregional bank holding company. Through its subsidiaries, it provides wholesale, middle market and retail banking, as well as numerous service products including trust and investment, cash management and financial data processing.
 Detailed supplemental information follows.
 SUPPLEMENTAL INFORMATION
 Net Interest Revenue
 (dollar amounts in millions)
 Quarter ended Year ended
 Dec. 31, Dec. 31,
 1991 1990 1991 1990
 Net interest revenue $258 $233 $974 $867
 Taxable equivalent
 increments 5 8 27 33
 Net interest revenue
 (taxable equivalent basis) 263 241 1,001 900
 Average interest-earning
 assets 25,343 25,583 25,495 26,592
 Net interest margin (pct.) 4.04 3.61 3.82 3.26
 Net interest margin
 (taxable equivalent
 basis) (pct.) 4.11 3.73 3.93 3.38
 Both net interest revenue and the net interest margin posted significant increases in the fourth quarter of 1991, compared with the prior-year quarter. Net interest revenue increased by $25 million, or 11 percent, reflecting a 43 basis point increase in the net interest margin. The improvement was attributable in large part to widening spreads as the corporation effectively managed its funding positions in a declining interest rate environment in 1991. Also contributing to the improvement was a substantial increase in the level of higher- yielding credit card receivables in the fourth quarter of 1991, resulting principally from the credit card portfolio acquisitions within the corporation's region over the past year. In addition, loan fees increased by $7 million in the fourth quarter of 1991, compared with the prior-year quarter, due in large part to higher deferred fees recognized. Partially offsetting these positive factors was the effect of lower cash receipts on nonperforming loans.
 For the full year of 1991, wider spreads and a higher level of credit card receivables contributed significantly to the $107 million, or 12 percent, increase in net interest revenue compared with 1990. The improvement also was attributable to a $14 million increase in loan fees, as well as the impact of the May 1990 PSFS branch acquisition, which contributed to a more profitable balance sheet mix in 1991. Partially offsetting these factors was the impact of a higher level of nonperforming assets, as well as a reduction in net interest revenue from the second quarter 1990 sale of the corporation's consumer finance subsidiary. The net interest margin on a taxable equivalent basis was 3.93 percent in 1991, up 55 basis points from the prior-year period.
 Provision and Net Credit Losses
 (dollar amounts in millions)
 Quarter ended Year ended
 Dec. 31, Dec. 31,
 1991 1990 1991 1990
 Provision for credit
 losses $75 $175 $250 $315
 Net credit losses:
 Domestic:
 Real estate 26 53 83 129
 Commercial and financial 13 26 57 37
 Consumer credit 17 11 55 39
 Total domestic 56 90 195 205
 International:
 LDC - - 19 196
 Other 10 - 15 4
 Total international 10 - 34 200
 Total net credit losses 66 90 229 405
 Annualized net credit losses
 to average loans:
 Total (pct.) 1.44 1.88 1.24 2.15
 Excluding net losses on
 LDC loans (pct.) 1.44 1.88 1.14 1.11
 The provision for credit losses was $75 million in the fourth quarter of 1991, reflecting continued concern about the effect of the economic recession on the credit quality of the loan portfolio. The corporation recorded a $175 million provision for credit losses in the fourth quarter of 1990, primarily to address concerns over deterioration in domestic commercial real estate markets and the potential effect of the economic downturn on the domestic commercial and consumer loan portfolios. Domestic net credit losses in the fourth quarter of 1991 were down by $34 million, compared with the prior-year period, despite a $6 million increase in consumer net credit losses attributable primarily to the expansion of the credit card portfolio in 1991. International net credit losses in the fourth quarter of 1991 reflected charge-offs on loans to commercial and industrial borrowers.
 Domestic net credit losses for the full year of 1991 decreased by $10 million compared with the full year of 1990 as a $46 million decrease in net credit losses on real estate loans more than offset a $36 million increase in losses on domestic commercial and financial and consumer loans. International net credit losses in 1991 included $19 million on loans to certain lesser developed countries (LDCs), principally resulting from LDC loan sales. Net credit losses on LDC loans totaled $196 million in 1990, primarily resulting from LDC loan sales, as well as write-downs on restructured Mexican public sector term loans.
 Service Fee and Other Revenue
 (in millions)
 Quarter ended Year ended
 Dec. 31, Dec. 31,
 1991 1990 1991 1990
 Trust and investment
 management fees $80 $67 $307 $279
 Cash management fees
 and deposit transaction
 charges 40 35 153 131
 Data processing fees 23 24 93 97
 Credit card revenue 14 10 46 37
 Mortgage servicing fees 9 7 31 26
 Other fees and commissions 23 21 112 92
 Total service fee revenue 189 164 742 662
 Trading revenue 6 2 15 8
 Gains on sale of
 investment securities 39 3 78 8
 Gain on sale of consumer
 finance subsidiary -- -- -- 74
 Dividends on GSNB senior
 preferred stock 1 1 4 32
 Management fees for
 collecting GSNB assets -- 1 1 20
 Other noninterest revenue 4 7 8 18
 Total service fee and
 other revenue 239 178 848 822
 Revenue from the corporation's service fee generating businesses increased by $25 million, or 15 percent, in the fourth quarter of 1991, compared with the fourth quarter of 1990. Principally responsible for this improvement were increases of 19 percent in trust and investment management fees, 15 percent in cash management fees and 44 percent in credit card revenues. The increase in credit card revenue was attributable in large part to a higher level of credit card assets resulting from the credit card portfolio acquisitions within the corporation's region over the past year.
 Service fee revenue for the full year of 1991 totaled $742 million, up $80 million, or 12 percent, compared with 1990. This improvement reflected increases of 10 percent in trust and investment management fees, 16 percent in cash management fees and 25 percent in credit card revenue. Mortgage servicing fees improved by $5 million, or 19 percent, in 1991, reflecting growth in the mortgage servicing portfolio. Other fees and commissions increased by $20 million, or 23 percent, primarily due to the strong performance of a seasonal product.
 Payment for certain service products is made through the interest-earning capacity of customers' deposit balances rather than through fees. On an analytical basis, management views the fee- equivalent revenue from these deposit balances as service revenue, although it is reported in net interest revenue. This fee equivalent revenue was approximately $116 million in 1991, up from approximately $111 million in 1990. Including these amounts, service revenue was approximately 50 percent of the corporation's net interest and service revenue in both 1991 and 1990. The net interest revenue on these deposit balances contributed approximately 45 basis points to the net interest margin in 1991 and approximately 42 basis points in 1990.
 Trading revenue improved by $4 million in the fourth quarter of 1991 as the corporation recorded bond trading gains, compared with bond trading losses in the prior-year quarter.
 The corporation recorded $39 million in gains on the sale of investment securities during the fourth quarter of 1991. Certain U.S. agency mortgage-backed securities were sold as a means of reducing the corporation's exposure to prepayment risk in a declining interest rate environment. In addition, the corporation sold substantially all of its remaining portfolio of municipal securities to help optimize its tax position and to help improve the credit quality of the investment securities portfolio.
 Trading revenue was $15 million for the full year of 1991, up from $8 million in 1990, primarily as a result of improved bond trading profits.
 Gains on the sale of investment securities totaled $78 million in 1991 and primarily reflected the same factors responsible for the fourth quarter 1991 sales. The corporation recorded $8 million in gains on the sale of investment securities in 1990. Revenues in 1990 also included a $74 million gain from the sale of the corporation's consumer finance subsidiary, $32 million of dividend revenue on Grant Street National Bank (GSNB) senior preferred stock, and $20 million in management fees earned by the corporation for collecting GSNB assets. Other noninterest revenue in both 1991 and 1990 primarily reflected gains on the sale of assets and equity securities.
 Operating Expense
 (dollar amounts in millions)
 Quarter ended Year ended
 Dec. 31, Dec. 31,
 1991 1990 1991 1990
 Staff expense $143 $140 $553 $552
 Net occupancy expense 38 51 142 145
 Professional, legal and
 other purchased services 32 34 111 106
 Equipment expense 25 25 95 91
 Amortization of goodwill,
 intangibles
 and issue costs 16 14 58 44
 FDIC assessment and
 regulatory examination fees 12 7 47 28
 Net expense of real
 estate acquired 12 14 37 18
 Shares, capital and
 franchise taxes 5 3 21 16
 Other expense 60 47 200 181
 Total operating expense 343 335 1,264 1,181
 Average full-time
 equivalent staff 16,300 16,500 16,300 16,500
 Operating expense totaled $343 million in the fourth quarter of 1991, up $8 million compared with the fourth quarter of 1990. Of this increase, $5 million was attributable to higher FDIC assessment and regulatory examination fees resulting from a significant increase in the FDIC assessment rate charged to banks in 1991. Staff expense rose $3 million, or 3 percent, compared with the prior-year quarter, while the $13 million increase in other expense reflected increases in a variety of expense categories, many of which were nonrecurring in nature. Net occupancy expense decreased by $13 million, compared with the fourth quarter of 1990 when the corporation recorded an $11 million buyout of a long-term lease commitment.
 Compared with the third quarter of 1991, operating expense increased by $30 million in the fourth quarter of 1991. Professional, legal and other purchased services increased by $5 million, due in part to one-time expenses related to new service products business activity. The net expense of real estate acquired (OREO) increased by $4 million as a result of an increased provision to the OREO reserve in response to a higher level of OREO in a declining market value environment. Other expense increased by $15 million in the fourth quarter of 1991, including approximately $8 million of balance sheet valuation adjustments, of which $4 million were mortgage servicing foreclosure losses.
 Operating expense for the full year of 1991 increased by $83 million, or 7 percent, compared with 1990. The combination of staff, net occupancy and equipment expense, which equaled approximately 62 percent of total operating expense in 1991, was essentially flat compared with 1990. The combination of FDIC assessment fees; net expense of OREO; and shares, capital and franchise taxes increased by $43 million, or 71 percent compared with 1990. The increase in the FDIC assessment reflected the higher assessment rate in 1991. The increase in the net expense of OREO reflected declining OREO market values in 1991. Shares, capital and franchise taxes increased in 1991, due primarily to nonrecurring tax credits received in 1990. The $38 million, or 11 percent, combined increase in the amortization of goodwill and other intangibles; professional, legal and other purchased services; and other expense was due in part to the impact of the May 1990 acquisition of the PSFS branch offices and to certain other nonrecurring expenses. The average full-time equivalent staff level, excluding temporary services, overtime equivalents and contract programmers, was approximately 15,300 in December 1991, compared with approximately 15,100 in September 1991 and approximately 15,400 in December 1990. The December 1991 average full-time equivalent staff level does not include the employees of United Penn Bank (UPB), which was acquired on Dec. 31, 1991. UPB had approximately 600 employees at year-end 1991.
 -- Income Taxes
 The provision for income taxes totaled $28 million in the full year of 1991, compared with $19 million in the full year of 1990. At Dec. 31, 1991, approximately $130 million of unrecognized tax benefits are available to offset federal income taxes, depending upon several factors, including profits earned in future periods.
 CREDIT QUALITY
 Reserve for Credit Losses
 (dollar amounts in millions)
 Dec. 31, Sept. 30, Dec. 31,
 1991 1991 1990
 Reserve for
 credit losses $596 $547 $525
 Reserve as a
 percentage of
 total loans (pct.) 3.12 2.93 2.80
 The reserve for credit losses at Dec. 31, 1991, increased by $49 million compared with Sept. 30, 1991, and by $71 million compared with Dec. 31, 1990, principally reflecting $40 million of reserves from the UPB acquisition. The remaining increase in the reserve from the prior year end reflected concerns about the effect of the economic recession on the credit quality of the loan portfolio. The reserve as a percentage of nonperforming loans was 113 percent at Dec. 31, 1991, up from 96 percent at Sept. 30, 1991, and 100 percent at Dec. 31, 1990. Management believes that the current reserve level is adequate to absorb future losses inherent in the loan portfolio, although the ultimate adequacy of the reserve is dependent upon future economic factors beyond the corporation's control.
 Nonperforming and Past Due Assets
 (dollar amounts in millions)
 Dec. 31, Sept. 30, Dec. 31,
 1991 1991 1990
 Domestic
 nonperforming loans:
 Real estate $366 $388 $422
 Other domestic 130 168 97
 International
 nonperforming loans:
 LDC 3 3 3
 Other international 29 10 4
 Total nonperforming
 loans 528 569 526
 Real estate acquired,
 net of reserves 364 336 253
 Other assets acquired 41 27 2
 Total net assets
 acquired 405 363 255
 Total nonperforming
 assets 933 932 781
 Nonperforming loans
 as a percentage of
 total loans (pct.) 2.77 3.05 2.81
 Total nonperforming
 assets as a
 percentage of total
 loans and net
 assets acquired (pct.) 4.78 4.89 4.11
 Past due loans 75 73 48
 Nonperforming assets at Dec. 31, 1991, were essentially unchanged compared with the Sept. 30, 1991 level, despite the addition of $37 million of nonperforming assets in connection with the acquisition of UPB. Nonperforming domestic real estate assets, which include nonperforming real estate lo23 million of nonperforming real estate assets from UPB. Other domestic nonperforming loans, which consist primarily of loans to borrowers in the commercial and industrial portfolio, decreased by $38 million during the quarter after the addition of $14 million in loans from UPB. International nonperforming loans reflected the fourth quarter 1991 addition to nonaccrual status of a loan to a borrower in the communications industry and a loan secured by real estate in Canada. Other assets acquired increased by $14 million during the fourth quarter, primarily as a result of an in-substance foreclosure on a lease to a commercial borrower. Recessionary economic conditions could continue to adversely affect the commercial and industrial loan portfolio in 1992.
 Compared with year-end 1990, nonperforming assets increased by $152 million, or 19 percent. Increases of $55 million in nonperforming real estate assets and $33 million in other domestic nonperforming loans reflected the continued deterioration in domestic commercial real estate markets and the overall weakness in the U.S. economy in 1991, as well as the nonperforming assets acquired in the UPB transaction. The increase in other domestic nonperforming loans additionally reflected the third quarter addition to nonaccrual status of $44 million in loans to one of the nation's largest natural gas systems. The $25 million increase in international nonperforming loans, compared with year-end 1990, primarily reflected the fourth quarter factors. The $39 million increase in other assets acquired, compared with the prior year end, resulted primarily from in-substance foreclosures on three domestic commercial borrowers.
 Selected Capital Data
 (dollar amounts in millions)
 Dec. 31, Sept. 30, Dec. 31,
 1991 1991 1990
 Common shareholders'
 equity $1,648 $1,594 $1,294
 Total shareholders'
 equity 2,073 2,119 1,674
 Common shareholders'
 equity to
 assets ratio (pct.) 5.61 5.50 4.50
 Total shareholders'
 equity to
 assets ratio (pct.) 7.06 7.32 5.82
 Tier I capital
 ratio (pct.) (a) 5.65 (b) 5.95 4.30
 Total (Tier I
 and Tier II)
 capital ratio (pct.) (a) 9.85 (b) 10.19 8.24
 Leverage capital
 ratio (pct.) 5.40 (b) 5.64 4.04
 Book value per
 common share (c) $31.29 $30.51 $28.51
 Closing common
 stock price $34.875 $33.25 $23.75


Note: Ratios are based on unrounded numbers. (a) Calculated under the requirements applicable to year-end 1992. (b) Estimated. (c) The book value per common share assumes full conversion of the
 Series D preferred stock to common stock. Accordingly, this
 includes the additional paid-in capital on the Series D
 preferred stock because this paid-in capital has no
 liquidation preference over the common stock.
 The corporation continued to improve its capital position in 1991, achieving a 5.61 percent ratio of common shareholders' equity to total assets at Dec. 31, 1991. This 111 basis point improvement compared with year-end 1990 resulted primarily from earnings retention and the second quarter 1991 issuance of 5.75 million shares of common stock. Compared with Sept. 30, 1991, the reduction in total shareholders' equity and certain capital ratios reflected the Nov. 15, 1991 redemption of the corporation's $100 million Series G fixed/adjustable rate preferred stock. The Series G preferred stock was a component of Tier I capital.
 On Jan. 13, 1992 the corporation announced that it will issue $100 million of a new series of preferred stock, Series J, on Jan. 21, 1992. This stock will have a fixed annual dividend rate of 8.50 percent and a liquidation preference of $25 per share and will qualify as Tier I capital. Had the Series J preferred stock been issued as of Dec. 31, 1991, the ratio of total shareholders' equity to total assets would have been 7.39 percent, the Tier I capital ratio would have been approximately 6.00 percent and the leverage capital ratio would have been approximately 5.75 percent.
 SUMMARY DATA
 Mellon Bank Corporation (and its subsidiaries)
 (dollar amounts in millions except per share amounts)
 (common shares in thousands)
 Quarter ended Year ended
 Dec. 31, Dec. 31,
 1991 1990 1991 1990
 Selected statistical
 data (a)
 Return on assets (pct.) .99 () .96 .58 (b)
 Return on common
 shareholders' equity (pct.)4.87 () 15.80 9.56 (b)
 Yield on interest-earning
 assets, on a taxable
 equivalent basis (pct.) 8.68 10.16 9.14 10.11
 Cost of funds
 supporting interest-
 earning assets (pct.) 4.57 6.43 5.21 6.73
 Dividends per
 common share $.35 $.35 $1.40 $1.40
 Average balances for the period
 Money market
 investments $1,456 $1,259 $1,344 $2,752
 Trading account
 securities 283 207 309 278
 Investment securities 5,268 5,216 5,333 4,722
 Loans 18,336 18,901 18,509 18,840
 Total interest-earning
 assets 25,343 25,583 25,495 26,592
 Total assets 28,737 29,283 29,050 30,216
 Deposits 20,830 22,225 21,384 22,029
 Total interest-bearing
 liabilities 21,661 22,434 22,094 23,402
 Common shareholders'
 equity 1,619 1,409 1,479 1,336
 Total shareholders'
 equity 2,093 1,789 1,904 1,732
 Year ended
 Dec. 31,
 Computation of net income
 per common share 1991 1990
 Net income applicable to
 common stock (c) $234 $128
 Average common shares
 outstanding 47,901 42,160
 Average common shares
 issuable upon
 conversion of Series D
 preferred stock 1,471 3,000
 Other common stock
 equivalents, net of
 shares assumed
 repurchased 819 73
 Total stock and stock
 equivalents 50,191 45,233
 Net income per common
 share (d) $4.66 $2.83(b) () Loss. (a) Ratios are annualized and based on unrounded numbers. (b) Excluding the $74 million gain on the sale of the Corporation's
 consumer finance subsidiary, return on assets, return on common
 shareholders' equity and net income per common share would have
 been .33 percent, 4.06 percent and $1.20, respectively. (c) After adding back Series D preferred stock dividends of $3
 million in 1991 and $4 million in 1990. (d) Based on unrounded numbers.
 CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
 Mellon Bank Corporation (and its subsidiaries)
 (in millions, except per share amounts)
 Quarter ended Year ended
 Dec. 31, Dec. 31,
 1991 1990 1991 1990
 Interest revenue
 Loans and loan fees $413 $502 $1,733 $1,986
 Money market
 investments 21 29 85 246
 Trading account
 securities 5 4 23 22
 Investment securities 111 113 462 401
 Total interest
 revenue 550 648 2,303 2,655
 Interest expense
 Deposits in
 domestic offices 199 297 921 1,134
 Deposits in
 foreign offices 17 27 82 188
 Short-term
 borrowings 47 56 209 313
 Notes and debentures
 (with original
 maturities over
 one year) 29 35 117 153
 Total interest
 expense 292 415 1,329 1,788
 Net interest
 revenue 258 233 974 867
 Provision for
 credit losses 75 175 250 315
 Net interest
 revenue after
 provision for
 credit losses 183 58 724 552
 Service fee and
 other revenue
 Service fee revenue 189 164 742 662
 Trading revenue 6 2 15 8
 Gains on sale of
 investment securities 39 3 78 8
 Gain on sale of
 consumer finance
 subsidiary -- -- -- 74
 Other noninterest
 revenue 5 9 13 70
 Total service fee
 and other revenue 239 178 848 822
 Operating expense
 Staff expense 143 140 553 552
 Net occupancy expense 38 51 142 145
 Professional, legal
 and other purchased
 services 32 34 111 106
 Equipment expense 25 25 95 91
 Net expense of
 real estate acquired 12 14 37 18
 Other expense 93 71 326 269
 Total operating
 expense 343 335 1,264 1,181
 Income (loss) before
 income taxes 79 (99) 308 193
 Provision for
 income taxes 7 -- 28 19
 Net income (loss) 72 (99) 280 174
 Dividends on
 preferred stock 12 12 49 50
 Net income (loss)
 applicable to
 common stock $60 $(111) $231 $124
 Net income (loss)
 per common share $1.11 $(2.52) $4.66 $2.83(a) (a) Excluding the $74 million gain on the sale of the
 Corporation's consumer finance subsidiary, net income per
 common share would have been $1.20.
 CONSOLIDATED CONDENSED BALANCE SHEET
 Mellon Bank Corporation (and its subsidiaries)
 (dollar amounts in millions)
 Dec. 31, Dec. 31,
 1991 1990
 Assets
 Cash and due from banks $ 1,635 $ 2,594
 Money market investments 1,183 849
 Trading account securities 85 99
 Investment securities
 (approximate market value
 of $6,016 and $4,646) 5,744 4,614
 Loans, net of unearned discount
 of $101 and $74 19,103 18,738
 Reserve for credit losses (596) (525)
 Ne 364 253
 Other assets 1,837 2,140
 Total assets 29,355 28,762
 Liabilities
 Deposits in domestic offices 21,471 21,778
 Deposits in foreign offices 983 937
 Short-term borrowings 2,730 2,202
 Other liabilities 597 657
 Notes and debentures
 (with original maturities
 over one year) 1,501 1,420
 Total liabilities 27,282 26,994
 Redeemable preferred stock -- 94
 Shareholders' equity
 Preferred stock 425 380
 Common stock - $.50 par value
 Authorized - 120,000,000 shares
 Issued - 51,401,066 and
 44,557,286 shares 26 22
 Additional paid-in capital 1,217 1,035
 Retained earnings 401 236
 Warrants 11 15
 Treasury stock - 256,021
 and 593,219
 shares at cost (7) (14)
 Total shareholders' equity 2,073 1,674
 Total liabilities, redeemable
 preferred stock and
 shareholders' equity 29,355 28,762
 /delval/
 -0- 1/16/92 R
 /CONTACT: Charles M. Johnston, analysts, 412-234-5601, or Thomas W. Butch, media, 412-234-6436, both of Mellon Bank Corporation/
 (MEL) CO: Mellon Bank Corporation ST: Pennsylvania IN: FIN SU: ERN


CD -- PG003R -- 0587 01/16/92 14:14 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 16, 1992
Words:4899
Previous Article:U.S. PAWN ANNOUNCES EXPIRATION DATE OF ITS CLASS A COMMON STOCK PURCHASE WARRANTS
Next Article:NATIONAL GYPSUM CREDITORS' COMMITTEE ANNOUNCES REORGANIZATION PLAN
Topics:


Related Articles
MELLON POSTS RECORD EARNINGS FOR 1991, STRONG RESULTS IN FOURTH QUARTER
OLD KENT REPORTS 19TH CONSECUTIVE YEAR OF INCREASED EARNINGS
MICHAEL BAKER CORPORATION REPORTS RECORD ANNUAL AND FOURTH-QUARTER RESULTS
GM REPORTS YEAR-END FINANCIAL RESULTS
GM REPORTS YEAR-END FINANCIAL RESULTS
MELLON BANK: HARRISBURG INDEX INCREASES IN FOURTH QUARTER
MELLON BANK: LANCASTER INDEX RISES IN FIRST QUARTER
ALBERTO-CULVER REPORTS RECORD FISCAL YEAR SALES AND EARNINGS; POSTS BILLION DOLLAR-PLUS SALES FOR FIRST TIME; DECLARES SPECIAL DIVIDEND
HERSHEY FOODS ANNOUNCES 1992 RECORD SALES AND EARNINGS
AMERIWOOD REPORTS RECORD SALES, EARNINGS IN 1992

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