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SHAWMUT NATIONAL COMPLETES SALE OF $310 MILLION OF REAL ESTATE ASSETS

 HARTFORD, Conn., and BOSTON, June 29 /PRNewswire/ -- Shawmut National Corporation (NYSE: SNC) said today that it had sold commercial and residential real estate assets with a carrying value of $309.8 million. The commercial real estate assets with a carrying value of $289.9 million were sold to Whitehall Street Real Estate Limited Partnership III (a partnership controlled by Goldman, Sachs & Co) and the J.E. Robert Companies. The residential estate assets with carrying value of $19.9 million were sold to Berkeley Federal Bank and Trust, F.S.B., of West Palm Beach, Fla.
 The sale will not have any material impact on second quarter results of operations. The corporation received $203.0 million net proceeds in consideration for the assets, or 65.5 percent of the carrying value.
 Joel B. Alvord, chairman and chief executive officer of Shawmut National, said, "We're pleased with the price that we are getting for these assets. But more importantly we are closing a chapter in Shawmut's recovery and have taken a major step in putting our asset quality problems behind us.
 "Disposition of these assets has a double benefit for Shawmut. One, it will reduce noninterest expenses. And, two, it focuses our management team and resources on growing revenues and earnings and making the finest banking franchise in New England even better. With this sale, our pro forma problem assets (nonaccruing loans plus foreclosed properties) would have been 4.01 percent of total loans and foreclosed properties instead of 5.12 percent, as reported for March 31."
 Balance Sheet Implications of Bulk Sale
 ($ millions) Actual Bulk Sale Pro Forma
 3/31/93 Effect 3/31/93
 Loans
 Performing 14,255.4 (53.4) 14,202.0
 Restructured 145.2 (75.4) 69.8
 Nonaccrual 595.7 (152.9) 442.8
 Total Loans 14,996.3 (281.7) 14,714.6
 Foreclosed Properties 181.4 (28.1) 153.3
 Problem Assets 777.1 (181.0) 596.1
 Reserves for Loan Losses 826.0 (108.6) 717.4
 Ratios (percent):
 Reserves/Nonaccruing
 Loans 138.7 162.0
 Reserves/Problem Assets 106.3 120.4
 Nonaccruing Loans/Loans 3.97 3.01
 Problem Assets/Loans &
 Foreclosed Properties 5.12 4.01
 This portfolio consists chiefly of mortgages and foreclosed properties in Connecticut, Massachusetts, and Rhode Island. The types of properties involved include offices, industrial facilities, retail centers, and apartments.
 The sale will result in a $108.6 million charge to the loan loss reserve. On a pro forma basis, the ratio of reserves to nonperforming loans improves to 162.0 percent at March 31, 1993, compared to the actual 138.7 percent.
 Shawmut National is a bank holding company with dual headquarters in Hartford, Conn., and Boston. Through its network of 300 branches, the corporation is a leading provider of financial services to consumers, businesses, government, and institutions in Connecticut, Massachusetts, Rhode Island and select national markets.
 -0- 6/29/93
 /CONTACT: Robert L. Guenther of Shawmut, 203-240-1267 (news media); Thomas R. Rice of Shawmut, 203-728-4872 (investor contact)/
 (SNC)


CO: Shawmut National Corporation ST: Connecticut, Massachusetts IN: FIN SU: RLE

CM -- NE011 -- 6799 06/29/93 15:04 EDT
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Publication:PR Newswire
Date:Jun 29, 1993
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