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MNC FINANCIAL, INC. REPORTS FURTHER IMPROVEMENT IN NONPERFORMING ASSETS AND INCREASING PROFITABILITY FOR FINAL QUARTER OF 1992

 BALTIMORE, Jan. 19 /PRNewswire/ -- MNC Financial Inc. (NYSE: MNC), parent company of American Security Bank and Maryland National Bank, reported today a further improvement in nonperforming assets and its fourth consecutive quarter of profitability with net income of $35.5 million for the quarter ended December 31, 1992.
 This compares with net income of $4.5 million, $2.0 million and $1.1 million for the third, second and first quarters, respectively, and a net loss of $(82.4) million for the fourth quarter of last year.
 MNC Financial president and CEO Frank P. Bramble said, "Our fourth quarter performance reflects continuing improvement in asset quality and core earnings power. It is important to note that net income for the period included a continuing improvement in core earnings. We are encouraged by the profitable performance of our basic banking businesses and the continuing reduction of our nonperforming assets."
 For the fourth quarter:
 Core profitability, or pre-tax operating income before credit costs (loan loss provision and OREO expense) and gains/losses on the sales of assets, increased 4 percent to $75 million from $72 million in the previous quarter, and compares with $55 million in the second quarter, $38 million in the first quarter and $28 million in the fourth quarter of 1991. "In addition to improvement in core profitability, MNC has also achieved positive after-tax earnings in the third and fourth quarters exclusive of gains from asset sales," said Bramble. Fourth quarter net income excluding gains on asset sales was $18 million versus $5 million in the preceding quarter. The net interest margin was 3.75 percent compared with 3.70 percent and 2.88 percent in the prior quarter and the fourth quarter of 1991, respectively. MNC said its core earnings power reflects the inherent strength of its products and services, combined with dominant market share and a continuing strong performance from the mortgage banking and trust subsidiaries.
 The net unrealized gains on MNC's investment securities portfolio amounted to approximately $129 million at December 31, 1992. MNC's financial results for the quarter reflect $16 million of gains from securities transactions. "Moving through the first quarter of 1993, our objective is to continue improving MNC's profitability through further growth of the operating earnings stream," said Bramble.
 Nonperforming loans and foreclosed assets were $1.109 billion, a reduction of $139 million, or 11 percent, since the end of the third quarter and a reduction of $754 million, or 40 percent, from the September 30, 1991 quarter-end peak in nonperforming assets. Restructured loans increased to $102 million at year-end from $3 million at September 30, 1992, as MNC was actively restructuring many relationships during the quarter. The company noted that despite the addition of some new nonperforming assets, it continues to dispose of problem assets at a rate of about $200 million per quarter through solutions involving sales, recoveries and restructurings.
 Net charge-offs were $75 million, as compared with $77 million in the third quarter, $98 million in the second quarter, $100 million in the first quarter of 1992, and $156 million for the fourth quarter of 1991. MNC said it is encouraged with the favorable declining trend in the level of its charge-offs.
 A provision of $31 million was added to reserves for possible credit losses, as compared with the addition of $37 million for the third quarter, $42 million for the second quarter, $46 million for the first 1992 quarter, and $115 in the fourth quarter of last year. Total reserves at year-end were $602 million, and the coverage ratio of total nonperforming loans increased to .93x, up from .91x at 09/30/92 and .83x at 06/30/92.
 Noninterest expenses, excluding OREO costs, were $148 million, compared with $165 million for the quarter ended December 31, 1991. As a result of successfully implementing its broad expense reduction program during the latter part of 1991, strict control over costs is continuing to enable significant permanent savings, according to the company.
 Stockholders' equity and loan loss reserves were $1.874 billion, and estimated Tier 1 and total capital ratios at December 31, 1992 were 10.13 percent and 13.34 percent, respectively. "Capital levels at the holding company and our subsidiary banks continue to improve and all of our capital ratios are in compliance with regulatory requirements and agreements," said Bramble.
 MNC Financial, Inc. is a bank holding company which delivers commercial, consumer, trust and specialty banking products in the Baltimore/Washington marketplace. Principal subsidiaries include Maryland National Bank and Maryland National Mortgage Corp. of Baltimore; American Security Bank and Security Trust Company, N.A. of Washington, D.C.; and Virginia Federal Savings Bank of Richmond.
 MNC FINANCIAL AND SUBSIDIARIES
 Financial Highlights
 (In thousands except for percentages and per share information)
 Three Months Ended December 31,
 Percent
 1992 1991 Change
 Operating Results
 Net interest income $ 144,826 $ 116,608 24
 Other operating income 97,192 68,128 43
 Other operating expense 171,118 194,430 (12)
 Net income (loss) 35,484 (82,419)
 Return on assets (Percent) .84 (1.85)
 Return on common equity (Percent) 14.67 (34.50)
 Net interest margin (Percent) 3.75 2.88
 Per Share Information
 Earnings per common and
 common equivalent share $ .31 $ (.96)
 Earnings per common share,
 assuming full dilution .31 (.96)
 Dividends - -
 Financial Condition
 Average balances:
 Investment securities $ 5,234,752 $ 4,005,090 31
 Loans, net of unearned income 9,008,805 10,791,778 (17)
 Earning assets 15,350,977 16,067,356 (4)
 Assets 16,741,682 17,636,238 (5)
 Deposits 11,476,649 14,183,106 (19)
 Stockholders' equity 1,221,283 1,076,539 13
 Common and common equivalent
 shares outstanding 110,149 87,324 26
 Common shares outstanding, assuming
 full dilution 110,668 87,336 27
 At period-end:
 Investment securities $ 5,309,757 $ 3,911,323 36
 Loans, net of unearned income 8,937,578 10,355,203 (14)
 Earning assets 15,427,574 15,604,712 (1)
 Assets 16,925,493 17,438,171 (3)
 Deposits 11,650,278 13,892,661 (16)
 Stockholders' equity 1,272,475 1,020,464 25
 Common shares outstanding 89,682 87,335 3
 Reserve for Possible Credit Losses
 Balance October 1 $ 646,150 $ 840,375 (23)
 Provision charged to expense 31,026 115,076 (73)
 Reserves disposed (3,900)
 Less: Net credit losses 75,319 155,613 (52)
 Balance December 31 $ 601,857 $ 795,938 (24)
 Annualized net credit losses/
 average loans (Percent) 3.33 5.72
 Year Ended December 31,
 Percent
 1992 1991 Change
 Operating Results
 Net interest income $ 532,470 $ 474,510 12
 Other operating income 406,463 679,110 (40)
 Other operating expense 730,323 832,011 (12)
 Net income (loss) 43,110 (70,201)
 Return on assets (Percent) .26 (.37)
 Return on common equity (Percent) 3.95 (7.22)
 Net interest margin (Percent) 3.50 2.69
 Per Share Information
 Earnings per common and
 common equivalent share $ .38 $ (.89)
 Earnings per common share,
 assuming full dilution .38 (.89)
 Dividends - -
 Book value 10.84 10.44 4
 Financial Condition
 Average balances:
 Investment securities $ 4,492,929 $ 4,178,625 8
 Loans, net of unearned income 9,480,602 11,813,334 (20)
 Earning assets 15,226,811 17,628,331 (14)
 Assets 16,728,750 19,166,721 (13)
 Deposits 12,456,175 15,130,466 (18)
 Stockholders' equity 1,087,884 1,175,689 (7)
 Common and common equivalent
 shares outstanding 96,590 87,219 11
 Common shares outstanding, assuming
 full dilution 97,503 87,231 12
 Reserve for Possible Credit Losses
 Balance January 1 $ 795,938 $ 923,860 (14)
 Provision charged to expense 156,666 428,143 (63)
 Reserves disposed (112,939)
 Less: Net credit losses 350,747 443,126 (21)
 Balance December 31 $ 601,857 $ 795,938 (24)
 Net credit losses/average loans (Percent) 3.70 3.75
 Reserve/period-end loans (Percent) 6.73 7.69
 Nonperforming Assets
 Nonaccruing loans $ 548,690 $ 1,130,103 (51)
 Restructured loans 101,553 441
 Assets acquired in foreclosure 459,080 641,266 (28)
 Nonperforming assets $ 1,109,323 $ 1,771,810 (37)
 Nonperforming assets/period-end
 loans plus foreclosed assets (Percent) 11.81 16.11
 Reserve/nonperforming loans .93x .70x
 Accruing loans past due 90 days or
 more $ 54,634 $ 122,841 (56)
 -0- 1/19/93
 /CONTACT: Daniel G. Finney, senior vice president, corporate communications of MNC Financial, 410-547-4038, or Charles L. Davis, vice president and director of investor relations of MNC Financial, 410-547-4410/
 (MNC)


CO: MNC Financial, Inc. ST: Maryland IN: FIN SU: ERN

JS -- PH014 -- 6319 01/19/93 12:00 EST
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