Printer Friendly

MNC FINANCIAL REPORTS FIRST QUARTER PROFIT

 MNC FINANCIAL REPORTS FIRST QUARTER PROFIT
 BALTIMORE, April 15 /PRNewswire/ -- MNC Financial, Inc. (NYSE: MNC),


parent company of Maryland National Bank and American Security Bank, reported today a return to profitability with net income of $1.1 million for the first quarter of 1992.
 This compares with a net loss of $(82.4) million for the fourth quarter of 1991.
 MNC Financial president and CEO Frank P. Bramble said, "Our first quarter performance reflects continuing improvement in asset quality and core earning power. While the economic environment remains difficult, we are encouraged by the continuing reduction of our nonperforming loans."
 For the first 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 78 percent to $38 million from $22 million in the previous quarter, and compares with $9 million in the first quarter of 1991. MNC said its core earnings power reflects the inherent strength of its products and services, combined with dominant market share and a strong performance once again from the mortgage banking and trust subsidiaries.
 Gains on investment securities amounted to approximately $35 million and a gain of about $6 million was realized on the sale of a portion of MNC's mortgage servicing portfolio. Nonperforming loans and foreclosed assets were $1.618 billion, a reduction of $154 million, or 8.7 percent, since yearend 1991 and a reduction of $175 million, or 9.8 percent, from the March 31, 1991, level. The company noted that despite the addition of some new nonperforming assets, it is disposing of problem assets at a rate of about $175 million per quarter through solutions involving sales, recoveries and restructurings.
 Charge-offs were $100 million, as compared with $156 million in the fourth quarter of 1991 and $106 million a year ago. MNC said it was beginning to see a favorable declining trend in the level of its charge- offs.
 A provision of $46 million was added to reserves for possible credit losses, as compared with the addition of $115 million in the prior quarter, and $165 million in the first quarter of 1991. Total reserves at quarter-end were $742 million, or a coverage ratio of .77x of total nonperforming loans.
 Noninterest expenses, excluding OREO costs, were $154 million, compared with $165 million in the fourth quarter of 1991 and $171 million in the first quarter of 1991. As a result of successfully implementing its broad expense reduction program during the latter part of 1991, strict control over costs is enabling significant permanent savings, according to the company.
 The net interest margin, on a non-fully tax equivalent basis, was 3.13 percent compared with 2.88 percent and 2.38 percent in the prior quarter and thef?irst quarter of 1991, respectively.
 Stockholders' equity and loan loss reserves were $1.8 billion, and estimated Tier 1 and total capital ratios were 7.44 percent and 10.83 percent, respectively. MNC said it continues to remain liquid, and is making it a top priority to use this to its advantage by seeking new loan origination opportunities.
 MNC Financial 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
 (In thousands, except for percentages and per-share data)
 Three months ended March 31 1992 1991 Pct. Chg.
 Operating Results
 Net interest income $118,703 $113,334 5
 Other operating income 114,501 471,392 (76)
 Other operating expense 185,730 227,466 (18)
 Net income 1,093 153,987 (99)
 Return on assets (pct.) 0.03 3.01
 Return on common equity (pct.) (0.25) 52.91
 Net interest margin (pct.) 3.13 2.38
 Per-share data:
 Net income-primary -- $1.75
 Net income-fully diluted -- 1.75
 Dividends -- --
 Book value 10.32 13.12 (21)
 Financial Condition
 Average balances:
 Investment securities $3,763,824 $4,266,407 (12)
 Loans, net of unearned income 10,074,966 12,996,874 (22)
 Earning assets 15,247,250 19,279,025 (21)
 Assets 16,888,806 20,757,572 (19)
 Deposits 13,571,762 15,936,385 (15)
 Stockholders' equity 1,026,505 1,268,000 (19)
 Primary shares outstanding 88,136 86,995 1
 Fully diluted shares outstanding 88,148 87,008 1
 At period-end:
 Investment securities $3,499,492 $4,245,654 (18)
 Loans, net of unearned income 9,749,948 12,386,033 (21)
 Earning assets 14,944,769 18,523,512 (19)
 Assets 16,686,385 19,961,249 (16)
 Deposits 13,465,704 15,597,429 (14)
 Stockholders' equity 1,026,922 1,243,788 (17)
 Common shares outstanding 88,765 87,183 2
 Reserve for Possible Credit Losses:
 Balance Jan. 1 $795,938 $923,860 (14)
 Provision charged to expense 46,420 164,776 (72)
 Reserves (disposed) -- (107,597) (100)
 Less: Net credit losses 100,304 105,545 (5)
 Balance March 31 $742,054 $875,494 (15)
 Net credit losses/average
 loans (pct.) 4.00 3.29
 Reserve/period-end loans (pct.) 7.61 7.07
 Nonperforming Assets:
 Non-accruing loans $969,042 $1,271,719 (24)
 Restructured loans -- 11,908 (100)
 Assets acquired in foreclosure 648,524 509,560 27
 Nonperforming assets $1,617,566 $1,793,187 (10)
 Nonperforming assets/period-end
 loans plus foreclosed
 assets (pct.) 15.56 13.91
 Reserve/nonperforming loans .77x .68x
 Accruing loans past due
 90 days or more $108,125 $94,229 15
 -0- 4/15/92
 /CONTACT: Daniel G. Finney, senior vp-corporate communications, 410-547-4038, or Charles L. Davis, vp/director of investor relations, 410-547-4410, both of MNC Financial/
 (MNC) CO: MNC Financial, Inc. ST: Maryland IN: FIN SU: ERN


KA -- PH036 -- 8924 04/15/92 16:42 EDT
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:Apr 15, 1992
Words:982
Previous Article:PORT AUTHORITY ANNOUNCES ANNUAL JFK ROTARY 10K RUN ON APRIL 26
Next Article:STANDARD PACIFIC CORP. ANNOUNCES DECISION TO WITHDRAW PREVIOUS OFFERING OF SENIOR NOTES


Related Articles
MNC FINANCIAL REPORTS OPERATING RESULTS FOR FULL YEAR & FOURTH QUARTER
FIRST UNION CORPORATION NEWS RELEASE
MNC FINANCIAL, INC. REPORTS DECLINE IN NONPERFORMING ASSETS AND CONTINUED PROFITABILITY
NATIONSBANK ANNOUNCES DEFINITIVE AGREEMENT TO INVEST $200 MILLION IN MNC FINANCIAL, INC.
MNC FINANCIAL, INC. REPORTS FURTHER IMPROVEMENT IN NON-PERFORMING ASSETS AND CONTINUED PROFITABILITY
MNC FINANCIAL, INC. REPORTS FURTHER IMPROVEMENT IN NONPERFORMING ASSETS AND INCREASING PROFITABILITY FOR FINAL QUARTER OF 1992
MNC FINANCIAL, INC. REVISES UPWARDS ITS 1992 RESULTS FOLLOWING ADOPTION OF NEW ACCOUNTING STANDARD
NATIONSBANK CORPORATION EXERCISES OPTION TO ACQUIRE MNC FINANCIAL
MNC FINANCIAL, INC. DECLARES FIRST QUARTER PREFERRED STOCK DIVIDENDS; CURES ARREARAGES ON PREFERRED STOCK DIVIDENDS OWED
MNC FINANCIAL, INC. REPORTS FURTHER IMPROVEMENT IN NONPERFORMING ASSETS AND PROFITABILITY FOR SECOND QUARTER OF 1993

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