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NATIONSBANK ANNOUNCES EARNINGS

 NATIONSBANK ANNOUNCES EARNINGS (The following press release on NationsBank Corporation's fourth


quarter and full-year 1991 financial results reflects the merger of NCNB Corporation and C&S/Sovran Corporation on December 31, 1991. The merger was accounted for on a pooling of interests basis, so amounts for all current and prior periods are reported on a restated combined basis.)
 CHARLOTTE, N.C., Jan. 20 /PRNewswire/ -- NationsBank Corporation (NYSE: NB) today reported net income for 1991 of $202 million, or $0.76 per common share, and a net loss of $244 million, or ($1.08) per common share for the fourth quarter. These results reflect the merger of C&S/Sovran Corporation with NCNB Corporation on December 31, 1991 and include merger-related restructuring expenses of $330 million and $314 million for the full year and fourth quarter, respectively. On a restated basis, the combined companies earned net income of $595 million, or $2.61 per common share, for all of 1990, and net income of $38 million, or $0.13 per common share, for the fourth quarter of 1990.
 Excluding the restructuring charge, earnings for 1991 would have been $489 million, or $2.03 per common share, while fourth quarter earnings would have been $28 million, or $0.09 per common share. In addition, 1991 results included a $1.6 billion provision for credit losses, significantly higher than the provision of $1.0 billion in 1990. Finally, 1991 earnings included approximately $60 million of various nonrecurring year- end charges.
 "The strong underlying core earnings base of our company was reflected in our 1991 results, as, even in the face of a recessionary economic environment, we were able to absorb, on a combined basis, $2 billion of credit- and merger-related charges and still report $200 million of net income," said Hugh McColl, president and CEO of NationsBank. "More important, by taking these heavy charges in the second half of 1991, as we indicated we would do at the time of our merger announcement last summer, we enhance the future earnings potential of NationsBank."
 "NationsBank enters 1992, its first year of combined operations, on solid footing," continued McColl. "With a liquid and well- capitalized balance sheet, industry-leading fee-based businesses, an unsurpassed franchise and strong customer bases, NationsBank is uniquely positioned to benefit from the economic recovery we think should be underway by mid-year. In addition, we expect to benefit from expense savings that will result from the merging of our two companies -- savings that should approach $450 million on an annualized basis by the end of 1994. And we are already well ahead of schedule in this merger process."
 Total shareholders' equity was $6.5 billion on December 31, 1991 and stood at a healthy 5.91 percent of total assets, while book value per common share was $27.03 at year-end. Excluding the restructuring charge, return on common shareholders' equity was 7.25 percent in 1991. Dividends per common share were $1.48 in 1991, up 4 percent from the $1.42 per common share payout in 1990.
 Using 1992 final guidelines, Tier 1 risk-based capital was $5.8 billion on December 31, 1991, or 6.38 percent of risk-weighted assets, above the minimum regulatory guideline of 4.0 percent. Total capital of $9.4 billion represented 10.30 percent of risk- weighted assets at year-end, exceeding the minimum guideline of 8.0 percent.
 Net interest income on a tax-equivalent basis grew 4 percent in 1991 to $3,940 million, the result of a 2-percent increase in average earning assets and a slightly higher net interest margin, 3.82 percent versus 3.75 percent.
 Average loans and leases grew by 2 percent in 1991 to $70.6 billion. A 5-percent decline in average commercial real estate and construction loan levels was more than offset by 8-percent growth in average consumer-based loans. At year-end, the loan portfolio was well-diversified, with $32.2 billion, or 46 percent, in commercial loans, $10.2 billion, or 15 percent in real estate loans, and $26.8 billion, or 39 percent, in consumer- based loans.
 Average deposits in 1991 were $87.6 billion, up 3 percent from 1990. A low year-end loan-to-deposit ratio of 78 percent provides NationsBank with substantial capacity to fund loan growth when economic activity picks up.
 Noninterest income totaled $1,742 million in 1991. This 9-percent increase compared to 1990's $1,605 million reflects the relative strength of fee-based businesses at NationsBank, as this growth occurred in spite of the poor economic environment. Key contributors to the year-over-year growth were deposit service fees, mortgage servicing fees, bank card income, and trading account profits and fees.
 Pretax gains on the sale of investment securities were $454 million in 1991 compared to $67 million in 1990. These gains were the result of balance sheet management strategies to reposition the investment securities portfolio in response to the merger and to restructure to shorter maturities in light of the dramatic decline in interest rates during the year. At December 31, 1991, this $24.9 billion portfolio had an average maturity of 3.42 years, down from 5.95 years at year-end 1990, and it had unrealized appreciation of $915 million.
 Excluding restructuring expenses in both years, noninterest expense of $3,974 million in 1991 was 12-percent higher than 1990's $3,538 million. Foreclosed property expense, FDIC insurance premiums, expenses related to expanded private label credit card programs, and various nonrecurring year-end charges - - such as writeoffs of venture capital and other investments, and charges resulting from conforming various accounting policies -- accounted for $198 million, or 46 percent, of the year-over- year increase.
 Significant actions were taken in 1991 to identify and address credit quality problems through both aggressive charge-offs and strengthening of the reserve for credit losses. These actions also reflected the conformance of C&S/Sovran's credit policies, loan risk rating systems, and reserving methodologies to NCNB standards prior to closing. The year-end allowance for credit losses stood at $1,605 million, a $283 million increase over year-ago levels, and equated to 2.32 percent of net loans and leases. Net charge-offs in 1991 were $1,309 million, or 1.85 percent of average loans and leases.
 Nonperforming loans totaled $1,962 million at December 31, 1991, up $56 million from $1,906 million on September 30, and the allowance for credit losses represented 82 percent of these loans at year-end.
 Including $843 million of foreclosed properties, total nonperforming assets stood at $2,804 million, or 4.01 percent of net loans, leases and foreclosed properties, on December 31, 1991. This compared to nonperforming asset levels of $2,699 million on September 30, 1991.
 NationsBank Corporation is the fourth largest banking company in the U.S. with total assets of $110 billion and with 1865 banking offices in nine states and the District of Columbia.
 NationsBank Corporation Financial Highlights
 Three Months Year
 Ended Dec 31: Ended Dec 31:
 1991 1990 1991 1990
 Financial Summary
 (In thousands except per-share data)
 Net income $(243,840) $ 38,325 $201,850 $594,715
 Earnings per common
 share (1.08) .13 .76 2.61
 Average common shares
 outstanding 232,075 214,810 226,305 213,841
 Price per share of common
 stock at period end $40 5/8 $22 7/8 $40 5/8 $22 7/8
 Earnings Summary (Taxable-equivalent in millions)
 Net interest income $981.225 $982.923 $3940.290 $3771.078
 Provision for loan and
 lease losses (524.952) (423.212)(1582.420) (1025.119)
 Investment securities
 gains 222.171 33.701 453.520 66.555
 Noninterest income 438.095 424.589 1742.319 1604.882
 Restructuring expense (313.517) (330.000) (90.826)(A)
 Other noninterest
 expense (1097.094) (965.790)(3973.685) (3537.919)
 Income before taxes (294.072) 52.211 250.024 788.651
 Income taxes - including
 FTE adjustment (B) 50.232 (13.886) (48.174) (193.936)
 Net income ($243.840) $38.325 $201.850 $594.715
 (B) FTE adjustment 31.967 38.800 141.500 163.184
 Average Balance Sheet Summary
 (In billions)
 Loans and leases, net $70.218 $71.152 $70.621 $69.349
 Investment securities 24.891 27.562 25.412 25.984
 Earning assets 103.738 103.565 103.090 100.657
 Total assets 118.376 120.337 118.638 117.749
 Total assets (C) 116.787 116.668 115.792 113.692
 Noninterest-bearing
 deposits 15.007 14.138 14.372 14.067
 Interest-bearing
 deposits 72.782 71.335 73.198 70.593
 Total deposits 87.789 85.473 87.570 84.660
 Shareholders' equity 6.826 6.348 6.605 6.222
 Other Financial Data
 Net interest yield (Pct.) 3.77 3.79 3.82 3.75
 Return on avg. assets (C) N/M .13 .17 .52
 Return on avg. common
 equity N/M 1.90 2.70 9.56
 Net charge-offs
 (millions) $546.6 $217.6 $1308.6 $607.3
 Pct. of average loans and
 leases, net 3.09 1.21 1.85 .88
 (C) Based upon assets excluding Special Asset Division of NationsBank Texas
 (A) Relates to restructuring expenses of C&S and Sovran merger in 1990.
 N/M - Not meaningful
 Dec 31:
 1991 1990
 Balance Sheet Summary (In billions)
 Loans and leases, net $69.108 $70.891
 Investment securities 24.879 25.530
 Earning assets 95.605 98.439
 Total assets 110.319 116.431
 Total assets (D) 110.319 112.791
 Noninterest-bearing deposits 16.270 16.850
 Interest-bearing deposits 71.805 72.215
 Total deposits 88.075 89.065
 Shareholders' equity 6.518 6.283
 Per common share (not in billions) 27.03 27.30
 Risk-based capital - Final
 guidelines:
 Tier 1 capital $5.840 $5.453
 Tier 1 capital ratio (Pct) 6.38 5.79
 Total capital $9.433 $9.023
 Total capital ratio (Pct) 10.30 9.58
 Common shares outstanding
 (in millions) 231.246 216.071
 Allowance for credit losses
 (in millions) $1604.9 $1322.0
 Allowance as Pct. of loans and
 leases, net 2.32 1.86
 Allowance for credit losses
 as Pct. of nonperforming loans 81.82 100.46
 Nonperforming assets (in
 millions) $2804.4 $1651.4
 Nonperforming assets as Pct. of:
 Total assets (D) 2.54 1.46
 Loans and leases, net, and
 real estate acquired through
 foreclosure 4.01 2.32
 (D) Based upon assets excluding Special Asset Division of NationsBank Texas
 -0- 1/20/92
 /CONTACT: (Media) Rusty Page, 704-386-5667, or (Analysts) Susan Carr, 704-386-8059, or Mark McCall, 704-386-8465, all of NationsBank Corporation/
 (NB) CO: NationsBank Corporation ST: North Carolina, Georgia, Texas IN: FIN SU: ERN


CM -- CH007 -- 1429 01/20/92 12:59 EST
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