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NATIONSBANK CORPORATION ANNOUNCES THIRD QUARTER EARNINGS

 CHARLOTTE, N.C., Oct. 18 /PRNewswire/ -- NationsBank Corporation (NYSE: NB) today reported third quarter 1993 net income of $341 million, or $1.33 per common share, compared to third quarter 1992 net income of $350 million, or $1.40 per common share. Adjusting for several one-time items and last year's lower effective tax rate, which together masked the company's strong performance, pretax operating income before securities gains in the third quarter of 1993 rose 56 percent to $507 million from $324 million in the prior-year quarter.
 This quarter's results included a one-time pretax restructuring expense of $30 million, or 8 cents per share after taxes, relating to the October 1, 1993, acquisition of MNC Financial Inc., while the year- ago quarter included a $55-million pretax gain, or 18 cents per share after taxes, on the sale of Sovran Mortgage.
 For the first nine months of 1993, net income rose to $1.13 billion, or $4.42 per common share, which included a first-quarter tax benefit of $200 million related to adoption of a new accounting standard. This compared to net income of $911 million, or $3.69 per common share, in the first nine months of 1992. Pretax operating income before securities gains and one-time items climbed 71 percent to $1.36 billion in the first nine months of 1993 from $799 million in the same period of 1992.
 "The third quarter of 1993 was the most successful in the history of NationsBank," said Hugh McColl, chairman and chief executive officer. "Our strong operating results were highlighted by industry-leading loan and revenue growth, a widening net interest yield exclusive of acquisitions, still strengthening credit quality and effective expense control. Of particular note, loan balances continued to expand at an annualized double-digit rate during the quarter, while nonperforming assets shrank by $242 million, or an additional 14 percent.
 "We were pleased to complete our merger with MNC Financial on October 1, " continued McColl. "Like NationsBank, they also enjoyed higher earnings and improving credit quality in the third quarter, and we look forward to combining the strengths of our two companies."
 Total shareholders' equity at NationsBank grew 15 percent from year- ago levels to $8.7 billion at September 30, 1993, and stood at 6.27 percent of total assets. Book value per common share climbed 14 percent to $34.13 at the end of the most recent quarter from $30.06 at September 30, 1992. Return on common shareholders' equity was 15.60 percent in the third quarter. Tier 1 and total risk-based capital ratios of 7.60 percent and 12.15 percent, respectively, and a leverage ratio of 5.88 percent all compared favorably with regulatory guidelines at September 30, 1993.
 Average loans and leases rose $10.1 billion, or 15 percent, to $77.8 billion in the third quarter of 1993 compared to the same period of 1992. Included in this growth were $2.1 billion of loans attributable to the purchase of Chrysler First assets in February of this year. Loan growth also remained strong on a sequential quarter basis as balances expanded by $2.5 billion, or at a 13-percent annualized rate, between June 30 and September 30, 1993.
 Before the impact of the acquisition of Chicago Research & Trading Group (CRT), the third quarter net interest yield rose 6 basis points versus the 4.16 percent net interest yield in the third quarter of 1992, and was up 5 basis points from the second quarter of 1993.
 The acquisition of CRT on July 2 contributed $11.4 billion of the $19.6 billion year-over-year total increase in average earning assets to $121.1 billion. The CRT-related earning assets were primarily dealer inventory, which added only minimally to net interest income, since CRT's dealer trading revenues flow into noninterest income. After giving effect to these dealer assets, the reported net interest yield in the third quarter was 3.83 percent.
 Loan growth, coupled with the underlying improvement in the net interest yield, was the primary driver in the 10-percent year-over-year increase in taxable-equivalent net interest income to $1.17 billion.
 Noninterest income in the third quarter of 1993 of $524 million was 2 percent higher than in the year-ago quarter. After adjusting for acquisitions, divestitures and the $55-million gain on Sovran Mortgage, noninterest income rose approximately 13 percent on a year-over-year basis.
 Gains on the sales of securities were $50 million in the third quarter of 1993 compared to $41 million one year earlier.
 Noninterest expense was up 8 percent versus the prior-year quarter to $1.05 billion. Excluding CRT and the purchase of Chrysler First operations, noninterest expense rose only 1 percent on a year-over-year basis.
 A further strengthening in credit quality occurred in the most recent quarter. Total nonperforming assets stood at $1.44 billion on September 30, 1993, or 1.78 percent of net loans, leases, and factored receivables, and other real estate owned. This represented a $1.02- billion, or 41-percent, decline from year-earlier levels and included a $242-million, or 14-percent, drop since June 30, 1993.
 Net charge-offs were $99 million in the third quarter, or .50 percent of average loans, leases and factored receivables. This represented a substantial drop from $141 million, or .81 percent of average levels, in the year-ago quarter. The allowance for credit losses was $1.59 billion at September 30, 1993, or 1.97 percent of net loans, leases and factored receivables. The allowance represented 164 percent of nonperforming loans at September 30, 1993, up from 139 percent at June 30, 1993, and 98 percent at September 30, 1992.
 Reflective of this improvement in credit quality indicators, credit costs declined sharply. The provision for credit losses and other real estate owned expense dropped to $100 million and $11 million, respectively, in the third quarter of 1993 from $150 million and $45 million, respectively, in the year-ago quarter.
 Preliminary MNC Financial, Inc. Results (not included in NationsBank results)
 Net income for the third quarter of 1993 for MNC Financial Inc. totaled $33.7 million, up substantially from $4.5 million in the same period of 1992, and a 6-percent increase from the $31.8 million earned in the second quarter
of 1993. Credit quality continued to improve, as net charge-offs declined to $5.2 million, or .24 percent of average loans in the third quarter. This compared to net charge-offs of $76.8 million, or 3.30 percent of average loans in the third quarter of 1992. In addition, nonperforming assets declined further to $624 million, or 7.12 percent of loans plus foreclosed assets, on September 30, 1993. This represented a 50-percent drop from one year earlier and included an $86- million, or 12 percent, decline since June 30, 1993.
 NationsBank Corporation, at September 30, 1993, was the fourth largest banking company in the U.S. with total assets of nearly $140 billion and 1,718 banking centers in nine states and the District of Columbia.
 NATIONSBANK CORPORATION FINANCIAL HIGHLIGHTS
 THREE MONTHS NINE MONTHS
 ENDED SEPTEMBER 30 ENDED SEPTEMBER 30
 1993 1992 1993 1992
 FINANCIAL SUMMARY
 (In millions except per-share data)
 Income before effect of change in
 method of accounting for
 income taxes $341 $350 $928 $911
 Net income 341 350 1128 911
 Earnings per common share before
 effect of change in method of
 accounting for income taxes 1.33 1.40 3.63 3.69
 Earnings per common share 1.33 1.40 4.42 3.69
 Fully diluted earnings per common
 share before effect of change in
 method of accounting for
 income taxes 1.32 1.36 3.60 3.59
 Fully diluted earnings
 per common share 1.32 1.36 4.37 3.59
 Average common shares issued 254.712 244.224 254.023 240.974
 Average fully diluted common
 shares issued 258.659 255.351 258.054 252.358
 Price per share of common
 stock at period end $51 1/2 $44 3/8 $51 1/2 $44 3/8
 Common dividends paid 106 91 309 270
 Common dividends paid per share .42 .37 1.22 1.11
 Preferred dividends paid 3 7 7 22
 EARNINGS SUMMARY (Taxable-equivalent in millions)
 Net interest income $1168 $1059 $3397 $3092
 Provision for credit losses (100) (150) (330) (565)
 Gains on sales of securities 50 41 84 257
 Noninterest income 524 514 1486 1452
 Other real estate owned expense (11) (45) (56) (156)
 Restructuring expense (30) -- (30) --
 Other noninterest expense (1054) (977) (3071) (2899)
 Income before income taxes and
 effect of change in method
 of accounting for income taxes 547 442 1480 1181
 Income taxes - including
 FTE adjustment(A) (206) (92) (552) (270)
 Income before effect of change in
 method of accounting for
 income taxes 341 350 928 911
 Effect of change in method of
 accounting for income taxes --- --- 200 ---
 Net income $341 $350 $1128 $911
 (A) FTE adjustment $20 $22 $63 $70
 AVERAGE BALANCE SHEET SUMMARY (In billions)
 Loans and leases, net $77.803 $67.688 $75.559 $67.442
 Securities held for investment 23.167 22.634 23.998 22.084
 Securities held for sale 1.308 3.731 .615 2.031
 Total securities 24.475 26.365 24.613 24.115
 Earning assets 121.147 101.539 112.284 101.813
 Total assets 136.195 114.309 126.518 114.271
 Noninterest-bearing deposits 16.453 15.589 16.342 15.029
 Interest-bearing deposits 63.951 65.927 64.817 68.111
 Total deposits 80.404 81.516 81.159 83.140
 Shareholders' equity 8.642 7.447 8.308 7.140
 Common shareholders' equity 8.618 7.179 8.286 6.874
 OTHER FINANCIAL DATA
 Net interest yield 3.83pct. 4.16pct. 4.04pct. 4.05pct.
 Return on average assets before
 effect of change in method of
 accounting for income taxes .99 1.22 .98 1.06
 Return on average assets .99 1.22 1.19 1.06
 Return on average common
 shareholders' equity before effect
 of change in method of accounting
 for income taxes 15.60 18.97 14.87 17.27
 Return on average common
 shareholders' equity 15.60 18.97 18.10 17.27
 Gross charge-offs (in millions) $145 $182 $413 $624
 Net charge-offs (in millions) 99 141 276 496
 Pct. of average loans, leases and
 factored accounts receivable, net .50pct. .81pct. .48pct. .97pct.
 SEPTEMBER 30
 1993 1992
 BALANCE SHEET SUMMARY (In billions)
 Loans, leases and factored
 accounts receivable, net $80.539 $70.260
 Securities held for investment 25.361 23.769
 Securities held for sale 1.105 4.474
 Total securities 26.466 28.243
 Earning assets 124.770 105.632
 Total intangibles .953 .935
 Total assets 139.453 117.926
 Noninterest-bearing deposits 16.984 15.818
 Interest-bearing deposits 62.610 64.629
 Total deposits 79.594 80.447
 Shareholders' equity 8.744 7.634
 Common shareholders' equity 8.721 7.371
 Per common share (not in billions) 34.13 30.06
 RISK-BASED CAPITAL
 Tier 1 capital $7.821 $6.973
 Tier 1 capital ratio 7.60pct. 7.54pct.
 Total capital $12.508 $10.807
 Total capital ratio 12.15pct. 11.68pct.
 Leverage ratio 5.88pct. 6.20pct.
 Common shares issued(in millions) 255.562 245.160
 Allowance for credit losses $1.585 $1.674
 Allowance as pct. of net loans, leases,
 and factored accounts receivable 1.97pct. 2.38pct.
 Allowance for credit losses
 as pct. of nonperforming loans 164.34pct. 98.38pct.
 Nonperforming loans $.964 $1.702
 Nonperforming assets $1.440 $2.455
 Nonperforming assets as pct. of:
 Total assets 1.03pct. 2.08pct.
 Net loans, leases, factored accounts
 receivable and other real estate owned 1.78pct. 3.46pct.
 Full-time equivalent headcount 51,220 54,053
 Banking centers 1,718 1,776
 -0- 10/18/93
 /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 IN: FIN SU: ERN

CM -- CH001 -- 3168 10/18/93 08:20 EDT
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