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SHAWMUT NATIONAL ANNOUNCES 1992 FIRST QUARTER RESULTS; REPORTS PROFIT FOR THIRD CONSECUTIVE QUARTER; ASSET QUALITY CONTINUES TO IMPROVE

SHAWMUT NATIONAL ANNOUNCES 1992 FIRST QUARTER RESULTS; REPORTS PROFIT FOR THIRD CONSECUTIVE QUARTER; ASSET QUALITY CONTINUES TO IMPROVE
 HARTFORD, Conn., April 15 /PRNewswire/ -- Shawmut National Corporation (NYSE: SNC) today reported net income of $43.3 million, or $.58 per common share for the first quarter of 1992, compared with a net loss of $ 116.7 million, or $1.59 per common share, for the first quarter of 1991. It was the third consecutive profitable quarter for the multibank holding company.
 The corporation's first quarter results include securities gains of $68.4 million, and a gain of $9.7 million from the sale of home equity loan pass through certificates. First quarter 1991 results included a $71.5 million gain from the corporation's sale of its credit card and merchant card businesses.
 First quarter 1992 results also include core earnings of $65.6 million.
 "We continue to move forward along the road to recovery," said Shawmut National Chairman and Chief Executive Officer Joel B. Alvord. "The progress we've achieved in improved earnings and interest margins, strengthened capital, and asset quality are good signs. While we continue to advance in those areas we control, we and others remain concerned about the economy nationally and regionally. But the success of our recent public offering adds to our capital base and the equity strength we will need to take advantage of future opportunities in the southern New England market."
 Core earnings have increased for five consecutive quarters, benefitting from Shawmut National's continuing cost control initiatives, improving asset quality, and wider spreads between loan yields and funding costs. For the first quarter of 1992, core earnings increased to $65.6 million, an increase of 6 percent over the $61.7 million figure reported for the fourth quarter of 1991 and a 27 percent increase over the $51.5 million figure reported for the year ago period.
 The corporation's net interest margin increased to 4.02 percent in the first quarter of 1992, compared with 3.89 percent in the fourth quarter of 1991, and 3.62 percent in the year ago period, marking the fifth consecutive quarterly increase in Shawmut National's net interest margin.
 Asset quality also continued to improve. Nonaccruing loans declined for the fifth consecutive quarter. At March 31, 1992, nonaccruing loans (preliminary) were $977.2 million, compared with $1.037 billion at year-end 1991, and $1.423 billion at March 31, 1991. At March 31, 1992, nonaccruing loans plus foreclosed properties (preliminary) were $1.368 billion, compared with $1.398 billion at year-end 1991, and $1.714 billion at March 31, 1991. This represents the fourth consecutive quarterly decline in nonaccruing loans plus foreclosed properties.
 Results for the quarter also include a provision for loan losses of $68.5 million and a provision of $30.8 million for changes in the carrying value of foreclosed properties. The corporation's reserve for loan losses stood at $985.0 million at March 31, 1992, representing 101 percent of nonaccruing loans, compared to 96 percent and 73 percent at December 31, 1991 and March 31, 1991 respectively. Shawmut National's capital base was also strengthened in the first quarter. At March 31, 1992, the corporation's leverage ratio was 4.50 percent, compared with 4.22 percent at December 31, 1991. The successful completion of a $207.0 million common stock offering in early April netted the corporation $199.3 million, further strengthening the leverage ratio to 5.43 percent on a pro forma basis.
 The $68.4 million securities gain in the first quarter resulted from the sale in January of $1.3 billion in mortgage-backed securities, and the gain of $9.7 million resulted from the sale in February of $149.2 million in home equity loan pass through certificates. Highlights of the first quarter include: 1. Financial Performance
 - Core earnings (income before securities transactions and
 provisions for loan losses and foreclosed properties,
 adjusted
 for nonrecurring items) increased to $65.6 million for the
 quarter ended March 31, 1992, a 6 percent increase over the
 fourth quarter 1991 and a 27 percent increase over the year
 ago period.
 - Net interest income was $ 192.8 million for the first quarter
 1992 compared with $190.2 million for the fourth quarter 1991
 and $176.8 million for the year ago period.
 - The tax-equivalent net interest margin increased to 4.02
 percent in the first quarter of 1992, compared with 3.89
 percent in the fourth quarter of 1991 and 3.62 percent in the
 first quarter of 1991.
 - Noninterest expenses, exclusive of foreclosed properties
 provision and expenses and FDIC insurance premiums, amounted
 to $202.8 million for the first quarter 1992. This compares
 with $203.4 million for the first quarter 1991.
 - The corporation's investment securities portfolio had
 available gains of $53.6 million at March 31, 1992. At that
 time, its net book value exceeded its market value by $12.2
 million. As of April 14, 1992, the available gains in the
 corporation's investment securities portfolio had increased
 to
 $70.5 million and its market value exceeded its book value by
 $30.1 million.
 - The number of full-time equivalent employees at March 31,
 1992
 was 10,800, compared with 11,600 at March 31, 1991.


2. Asset Quality
 - Nonaccruing loans (preliminary) declined $60.3 million to
 $977.2 million in the first quarter 1992.
 - Nonaccruing loans plus foreclosed properties (preliminary)
 declined $30.2 million to $1.368 billion in the first quarter
 1992.
 - Net charge-offs totaled $83.5 million for the quarter ended
 March 31, 1992, compared to $140.2 million for the quarter
 ended March 31, 1991.
 - The provision for loan losses was $68.5 million for the
 quarter ended March 31, 1992, compared to $234.0 million for
 the quarter ended March 31, 1991.
 - Loan loss reserves represent 7.03 percent of total loans at
 March 31, 1992, compared with 7.02 percent at March 31, 1991.
 - Loan loss reserves represent 101 percent of nonaccruing loans
 at March 31, 1992, compared with 73 percent at March 31,
 1991,
 and 72 percent of nonaccruing loans and foreclosed properties
 at March 31, 1992, compared with 60 percent at March 31,
 1991.


3. Capital and Liquidity
 - At quarter-end, shareholders' equity was $1.090 billion, or
 4.80 percent of total assets. Shareholders' equity for the
 first quarter, adjusted for the net proceeds of the
 corporation's recently completed stock offering, would have
 been $1.289 billion, or 5.68 percent of total assets.
 - At March 31, 1992, the corporation's leverage ratio was 4.50
 percent compared with 4.22 percent at December 31, 1991. The
 successful completion of the corporation's common stock
 offering in early April strengthened the leverage ratio to
 5.43 percent on a pro forma basis.
 - At quarter-end, preliminary Tier I and Total capital ratios
 were 5.72 percent and 9.74 percent, respectively, and remain
 above regulatory minimums. Tier I and Total capital ratios,
 adjusted for the net proceeds of the corporation's recently
 completed stock offering, would have been 6.89 percent and
 10.91 percent, respectively.
 - The corporation remains highly liquid and at quarter-end
 maintained the equivalent of a net funds sold position of
 $1.494 billion.
 Shawmut National Corporation is a multibank holding company with dual headquarters in Hartford, Connecticut and Boston, Massachusetts. The corporation focuses on offering a range of financial products and services to consumers and small- to medium-size companies. The corporation also offers financial services to corporate customers, correspondent banks, and governmental entities based in New England and select national markets. Shawmut National operates a total of 334 branches in southern New England.
 SHAWMUT NATIONAL CORPORATION
 FINANCIAL HIGHLIGHTS
 (in millions, except per share and ratio data)
 March 31, 1992
 As adjusted
 Actual for the offering
 Common Stock Offering:
 Common shares issued and outstanding 74.0 91.2
 Common shareholders' equity $1,055 $1,254
 Total shareholders' equity 1,090 1,289
 Tier 1 Capital 974 1,173
 Total Capital 1,659 1,858
 Earnings per common share .58 .58
 Book value per common share 14.26 13.75
 Tier 1 capital ratio 5.72% 6.89%
 Total capital ratio 9.74 10.91
 Leverage ratio 4.50 5.43
 Average total shareholders' equity
 to average total assets 5.09 6.00
 SHAWMUT NATIONAL CORPORATION
 FINANCIAL HIGHLIGHTS
 (in millions, except per share data)
 QUARTER ENDED
 MAR 92 DEC 91 SEP 91 JUN 91 MAR 91
 EARNINGS:
 Net income (loss) $43.3 $2.4 $2.3 $(58.7) $(116.7)
 Preferred dividend .5 .6 .6 .6 .5
 Net income (loss)
 applicable to
 common shares 42.8 1.8 1.7 (59.3) (117.2)
 COMMON SHARE DATA:
 Earnings (loss)
 per share $ .58 $.02 $.02 $(.81) $(1.59)
 Book value per share14.26 13.62 13.62 13.54 14.21
 Average shares 73.9 73.8 73.7 73.7 73.7
 End of period shares 74.0 73.8 73.8 73.7 73.7
 AVERAGE BALANCES:
 Loans $ 13,830 $ 13,863 $ 13,928 $ 14,261 $ 14,810
 Interest-earning
 assets 19,715 19,921 19,893 20,340 20,527
 Total assets 21,736 21,968 22,072 22,610 22,923
 Core deposits 14,985 15,167 15,496 15,857 16,338
 Interest-bearing
 liabilities 16,760 17,084 17,111 17,432 17,622
 Common equity 1,071 1,017 1,013 1,042 1,157
 Total equity 1,106 1,052 1,048 1,077 1,192
 END OF PERIOD BALANCES:
 Total assets $ 22,692 $ 22,816 $ 22,846 $ 22,766 $ 22,940
 Core deposits 15,172 15,735 15,707 15,983 16,852
 Common equity 1,055 1,005 1,005 998 1,046
 Total equity 1,090 1,040 1,040 1,033 1,081
 Tier I capital-(a) 974 923 921 913 959
 Total capital-(a) 1,659 1,646 1,668 1,593 1,665
 RATIOS
 Net income (loss) to:
 Avg. total assets .80 pct .04 pct .04 pct (1.04)pct (2.06)pct
 Avg. total share-
 holders' equity 15.76 .91 .87 (21.86) (39.68)
 Net income (loss)
 applicable to
 common stock to avg.
 common shareholders'
 equity 16.08 .70 .67 (22.83) (41.08)
 Avg. total
 shareholders' equity
 to avg. total assets 5.09 4.79 4.75 4.77 5.20
 Risk-based capital ratios:
 Tier I-(a) 5.72 5.49 5.49 5.36 5.56
 Total capital-(a) 9.74 9.79 9.94 9.34 9.65
 Leverage ratio 4.50 4.22 4.19 4.06 4.21
 Net interest margin
 (tax-equivalent
 basis) 4.02 3.89 3.86 3.71 3.62
 ---
 Note (a)-Based on 1992 rules and March 1992 data are preliminary.
 SHAWMUT NATIONAL CORPORATION
 FINANCIAL HIGHLIGHTS
 (in millions)
 QUARTER ENDED
 MAR 92 DEC 91 SEP 91 JUN 91 MAR 91
 INTEREST INCOME
 AND EXPENSES
 Tax-equivalent
 interest and
 dividend income $400.3 $432.6 $456.8 $466.4 $480.8
 Interest expens 203.3 237.4 263.3 278.2 297.7
 Tax-equivalent net
 interest income 197.0 195.2 193.5 188.2 183.1
 Tax-equivalent
 adjustment 4.2 5.0 5.4 5.9 6.3
 Net interest income 192.8 190.2 188.1 182.3 176.8
 Provision for
 loan losses 68.5 73.8 57.0 101.6 234.0
 Net interest income
 (loss) after provision
 for loan losses 124.3 116.4 131.1 80.7 (57.2)
 NONINTEREST INCOME
 Customer service fees 39.1 36.0 37.4 38.8 39.4
 Trust and agency fees 29.5 29.1 29.9 30.6 31.1
 Investment securities
 gains 68.4 58.0 15.7 2.5 1.8
 Loan servicing 4.2 6.4 7.0 10.8 9.6
 Trading account
 profits 1.4 1.8 2.2 1.6 1.4
 Other 27.8 17.7 15.2 14.4 91.2
 Total 170.4 149.0 107.4 98.7 174.5
 NONINTEREST EXPENSES
 Compensation 89.3 90.8 91.4 89.4 92.7
 Employee benefits 16.9 14.6 15.3 16.4 15.7
 Occupancy 25.7 18.7 23.4 25.5 26.5
 Equipment 14.9 17.2 14.6 15.5 15.6
 Communication 11.0 10.4 10.5 11.3 11.4
 Foreclosed properties
 provision and
 expenses 38.0 45.7 22.1 21.0 21.2
 Other 54.5 65.1 58.4 58.7 50.6
 Total 250.3 262.5 235.7 237.8 233.7
 Income taxes 11.1 .5 .5 .3 .3
 Extraordinary credit 10.0
 Net income (loss) $43.3 $2.4 $2.3 $(58.7) $(116.7)
 SHAWMUT NATIONAL CORPORATION
 Financial Highlights
 QUARTER ENDED
 MAR 92 DEC 91 SEP 91 JUN 91 MAR 91
 LOANS BY TYPE
 Commercial/
 industrial $5,226.6 $4,890.8 $4,692.0 $4,955.7 $5,125.5
 Owner-occupied
 commercial
 real estate 1,730.8 1,794.1 1,854.2 1,861.2 1,769.6
 Real estate
 investor/developer:
 Construction
 and other 555.9 593.1 694.1 745.0 850.1
 Commercial
 mortgage 1,467.0 1,563.5 1,599.3 1,723.8 1,856.0
 Consumer:
 Residential
 mortgage 2,998.6 3,104.0 2,794.2 2,810.9 2,829.6
 Home equity 1,069.1 1,203.7 1,212.6 1,184.2 1,069.3
 Installment/other 958.6 1,142.3 1,150.0 1,163.9 1,239.8
 Foreign 8.5 9.2 9.9 10.7 10.8
 Total $14,015.1 $14,300.7 $14,006.3 $14,455.4 $14,750.7
 NONACCRUING LOANS
 BY TYPE-(a)
 Commercial/
 industrial $222.3 $222.3 $245.9 $307.6 $343.6
 Owner-occupied
 commercial
 real estate 166.0 182.2 182.6 191.5 192.6
 Real estate/investor
 developer:
 Construction
 and other 164.2 159.6 231.6 257.9 345.9
 Commercial
 mortgage 245.5 281.3 276.4 304.3 342.1
 Consumer:
 Residential
 mortgage 145.5 141.9 144.8 144.8 137.7
 Home equity 11.3 13.4 13.3 13.6 11.7
 Installment/other 19.7 34.1 32.0 36.4 45.5
 Foreign 2.7 2.7 3.3 3.4 3.5
 Total $977.2 $1,037.5 $1,129.9 $1,259.5 $1,422.6
 FORECLOSED PROPERTIES
 BY TYPE-(a)
 Real estate investor/
 developer $345.5 $315.6 $305.2 $299.1 $239.4
 Residential
 mortgage 45.5 45.3 49.1 47.1 51.9
 Total $391.0 $360.9 $354.3 $346.2 $291.3
 ---
 Note (a)-March 1992 data are preliminary.
 SHAWMUT NATIONAL CORPORATION
 FINANCIAL HIGHLIGHTS
 QUARTER ENDED
 MAR 92 DEC 91 SEP 91 JUN 91 MAR 91
 ASSET QUALITY-(a)
 Nonaccruing loans:
 Less than 90 days
 past due $325.2 $261.9 $295.5 $340.1 $372.1
 More than 90 days
 past due 652.0 775.6 834.4 919.4 1,050.5
 Total nonaccruing
 loans 977.2 1,037.5 1,129.9 1,259.5 1,422.6
 Foreclosed
 properties 391.0 360.9 354.3 346.2 291.3
 Total nonaccruing
 loans and
 foreclosed
 properties $1,368.2 $1,398.4 $1,484.2 $1,605.7 $1,713.9
 Restructured loans $107.5 $98.5 $79.2 $49.4 $26.5
 Accruing loans past
 due 90 days or more 65.8 82.5 74.4 67.7 83.4
 Reserve for loan
 losses 985.0 1,000.0 1,007.0 1,035.1 1,035.1
 Net charge-offs 83.5 80.8 85.1 101.6 140.2
 Net charge-offs to
 avg. loans outstanding
 (annualized) 2.42 pct 2.33 pct 2.44 pct 2.85 pct 3.79 pct
 Reserve for loan
 losses to loans
 outstanding 7.03 6.99 7.19 7.16 7.02
 Reserve for loan losses
 to annualized net
 charge-offs 2.95X 3.09X 2.96X 2.55X 1.85X
 ---
 Note (a)-March 1992 data are prelminary.
 -0- 4/15/92
 /CONTACT: James R. Dorsey, 203-722-9300, or Brent S. Di Giorgio, 203-240-7632/
 (SNC) CO: Shawmut National Corporation ST: Connecticut IN: FIN SU: ERN


DH -- NE020 -- 8877 04/15/92 16:07 EDT
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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.

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