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NATIONSBANK CORPORATION ANNOUNCES FIRST QUARTER EARNINGS

 CHARLOTTE, N.C., April 19 /PRNewswire/ -- NationsBank Corporation (NYSE: NB) today reported first quarter 1993 net income of $481 million, or $1.89 per common share, up from first quarter 1992 net income of $310 million, or $1.28 per common share.
 This year's results included a one-time cumulative benefit of $200 million, or $.79 per share, from the adoption of a new accounting standard (SFAS 109 "Accounting for Income Taxes"). After adoption of this standard, the company's effective tax rate should approximate 34 percent in 1993 compared to 18 percent for 1992. In addition, first quarter 1993 results included only $12 million of pretax gains on the sales of securities versus $204 million in the first quarter of last year.
 Pretax operating income before securities gains more than doubled, rising 133 percent to $414 million in this year's first quarter compared to $178 million in the year-ago quarter.
 "We are pleased that the operating momentum our company generated in 1992 has carried forward into the first quarter of this year," said Hugh McColl, chairman and chief executive officer. "We were particularly encouraged that, in what was still a weak economic environment, credit quality maintained its steady course of improvement and our loan portfolio experienced further growth."
 Total shareholders' equity rose 15 percent from year-ago levels to $8.2 billion on March 31, 1993 and represented 6.77 percent of total assets. Book value per common share climbed 14 percent to $32.29 at the end of the most recent quarter from $28.32 at March 31, 1992. Return on common shareholders' equity, excluding the one-time tax benefit, was 14.29 percent for the first three months of 1993.
 Tier 1 and total risk-based capital ratios of 7.61 percent and 11.80 percent, respectively, and a leverage ratio of 6.26 percent all compared favorably with regulatory guidelines at March 31, 1993.
 Taxable-equivalent net interest income of $1.1 billion grew by 8.5 percent compared to the year-ago quarter, due to a wider net interest margin, 4.16 percent versus 3.89 percent, and a 2- percent increase in average earning assets to $106.7 billion.
 Average loans and leases of $73.5 billion in the first quarter of 1993 were more than 8 percent greater than year- earlier levels, despite an almost $2 billion reduction in real estate commercial and construction balances. Average loan and lease balances grew by $3.1 billion between fourth quarter 1992 and first quarter 1993, due in part to our first quarter purchase of Chrysler First assets.
 Average deposits in this year's first quarter were $81.8 billion versus $85.4 billion in the year-ago quarter. Core, customer-based deposits made up 93 percent of this year's total, standing at $76.3 billion compared to $78.9 billion in the first quarter of 1992. The average rate paid on the interest-bearing portion of these core deposits in the first quarter of 1993 declined to approximately 3.34 percent from 4.65 percent a year earlier.
 Noninterest income rose to $481 million, a 2-percent increase relative to the prior-year quarter. After adjusting for acquisitions and divestitures, noninterest income rose approximately 8 percent on a year-over-year basis. Noninterest income in the first quarter of this year was up $20 million, or more than 4 percent, compared to the fourth quarter of 1992.
 Noninterest expense was $998 million in the first quarter of 1993, up 5 percent from $954 million in the first quarter of 1992. Approximately 55 percent of this year-over-year rise was attributable to the purchased Chrysler First operations.
 Credit quality indicators showed further improvement in the first quarter of this year. Total nonperforming assets were $1.92 billion at the end of the first quarter, or 2.53 percent of net loans, leases and factored receivables, and other real estate owned. This represented a $782 million, or 29 percent, decline from levels a year earlier. Excluding $100 million of nonperforming assets attributable to the purchased Chrysler First assets, total nonperforming assets fell by $173 million, or 9 percent, versus levels at December 31, 1992.
 Net charge-offs were $84 million, or .46 percent of average loans, leases and factored receivables, in the first quarter of 1993, a significant drop from $214 million, or 1.25 percent of average levels, in the year-ago quarter.
 The allowance for credit losses totaled $1.57 billion at March 31, 1993 and equaled 2.08 percent of net loans, leases and factored receivables. The allowance represented 117 percent of nonperforming loans at March 31, 1993, up from 103 percent at year-end 1992 and 88 percent at March 31, 1992.
 Reflecting these positive trends in credit quality, the provision for credit losses declined to $120 million in the first quarter of 1993 compared to $265 million in last year's first quarter. Other real estate owned expense also declined, from $61 million in the first quarter of 1992 to $24 million in the most recent quarter.
 NationsBank Corporation is the fourth largest banking company in the U.S. with total assets of more than $121 billion and 1,734 banking centers in nine states and the District of Columbia.
 NationsBank Corporation Financial Highlights
 Three Months
 Ended March 31
 1993 1992
 Financial Summary
 (In millions except per-share data)
 Income before effect of change in method of
 accounting for income taxes $281 $310
 Net Income 481 310
 Earnings per common share before effect of
 change in method of accounting for
 income taxes 1.10 1.28
 Earnings per common share 1.89 1.28
 Fully diluted earnings per common share
 before effect of change in method of
 accounting for income taxes 1.09 1.24
 Fully diluted earnings per share 1.87 1.24
 Average common shares issued 253.341 235.873
 Average fully diluted common shares issued 257.894 247.898
 Price per share of common stock-period end $54 5/8 $45 1/2
 Common dividends paid 101 89
 Common dividends paid per share .40 .37
 Preferred dividends paid 2 8
 Earnings Summary (Taxable-equivalent in millions)
 Net interest income $1,098 $1,012
 Provision for credit losses (120) (265)
 Gains on sales of securities 12 204
 Noninterest income 481 471
 Other real estate owned expense (24) (61)
 Noninterest expense (998) (954)
 Income before income taxes and effect of change
 in method of accounting for income taxes 449 407
 Income taxes - including FTE adjustment(A) (168) (97)
 Income before effect of change in method of
 accounting for income taxes 281 310
 Effect of change in method of accounting
 for income taxes 200 ---
 Net income $481 $310
 (A) FTE adjustment $23 $25
 Average Balance Sheet Summary (In billions)
 Loans and leases, net $73.504 $67.833
 Securities held for investment 23.987 24.353
 Securities held for sale .475 ---
 Total securities 24.462 24.353
 Earning assets 106.662 104.372
 Total assets 120.374 117.088
 Noninterest-bearing deposits 16.217 14.855
 Interest bearing deposits 65.602 70.542
 Total deposits 81.819 85.397
 Shareholders' equity 7.929 6.799
 Common shareholders' equity 7.908 6.533
 Other Financial Data
 Net interest yield 4.16pct 3.89pct
 Return on average assets before effect of change
 in method of accounting for income taxes .95 1.06
 Return on average assets 1.62 1.06
 Return on average common shareholders' equity
 before effect of change in method of
 accounting for income taxes 14.29 18.59
 Return on average common shareholders' equity 24.56 18.59
 Gross charge-offs(in millions) $133 $259
 Net charge-offs (in millions) 84 214
 pct. of average loans, leases and factored
 accounts receivable, net .46pct 1.25pct
 March 31
 1993 1992
 Balance Sheet Summary (In billions)
 Loans, leases and factored accounts
 receivable, net $75.344 $68.276
 Securities held for investment 24.819 17.852
 Securities held for sale .127 6.013
 Total securities 24.946 23.865
 Earning assets 107.635 100.001
 Total intangibles .981 1.056
 Total assets 121.441 112.741
 Noninterest-bearing deposits 15.977 15.339
 Interest-bearing deposits 65.331 69.390
 Total deposits 81.308 84.729
 Shareholders' equity 8.220 7.131
 Common shareholders' equity 8.200 6.866
 Per common share (not in billions) 32.29 28.32
 Risk-based capital:
 Tier 1 capital $7.397 $6.451
 Tier 1 capital ratio 7.61pct 7.17pct
 Total capital 11.476 10.010
 Total capital ratio 11.80pct 11.12pct
 Leverage ratio 6.26pct 5.59pct
 Common shares issued (in millions) 253.913 242.481
 Allowance for credit losses $1.566 $1.656
 Allowance as pct of net loans, leases and
 factored accounts receivable 2.08pct 2.43pct
 Allowance for credit losses as pct of
 nonperforming loans 116.86pct 87.94pct
 Nonperforming loans $1.340 $1.883
 Nonperforming assets $1.924 $2.706
 Nonperforming assets as pct of:
 Total assets 1.58pct 2.40pct
 Net loans, leases factored accounts
 receivable and other real estate owned 2.53pct 3.92pct
 Other Data
 Full-time equivalent headcount 51,974 55,714
 Banking centers 1,734 1,850
 -0- 4/19/93
 /CONTACT: (Media) Rusty Page, 704-386-5667, or Susan Carr, 704-386-8059, both of NationsBank Corporation/
 (NB)


CO: NationsBank Corporation ST: North Carolina IN: FIN SU: ERN

CM -- CH004 -- 7178 04/19/93 08:51 EDT
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Date:Apr 19, 1993
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