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SHAWMUT NATIONAL REPORTS SECOND QUARTER EARNINGS OF $8.6 MILLION, OR 9 CENTS PER COMMON SHARE; CORE EARNINGS ROSE, ASSET QUALITY IMPROVED

SHAWMUT NATIONAL REPORTS SECOND QUARTER EARNINGS OF $8.6 MILLION, OR 9 CENTS PER COMMON SHARE; CORE EARNINGS ROSE, ASSET QUALITY IMPROVED
 HARTFORD, Conn., July 16 /PRNewswire/ -- Shawmut National Corporation (NYSE: SNC) today reported net income of $8.6 million, or 9 cents per common share for the three months ended June 30, 1992, compared with a net loss of $58.7 million, or 81 cents per common share, during the comparable period in 1991.
 For the first six months of 1992, the Corporation reported net income of $51.9 million, or 63 cents per common share. For the first six months of 1991, the corporation reported a net loss of $175.4 million, or $2.40 per common share.
 It was the corporation's fourth straight profitable quarter. The 1992 second quarter results included a gain of $12.6 million from the sale of $402 million of automobile loan pass-through certificates. There were no securities gains during the second quarter. For the first quarter of this year, results included $68.4 million of securities gains and a $9.7 million gain from the sale of home-equity loan pass-through certificates.
 Results for the first six months of 1991 included a $71.5 million gain from the sale of the corporation's, credit card and merchant card businesses.
 "Our second quarter results benefitted from increased core earnings and lower provisions," said Joel B. Alvord, chairman and chief executive officer of Shawmut National.
 "Core earnings rose 13 percent due to continued improvement in our net interest margin and to our ongoing efforts to keep a tight rein on costs," Alvord said. "Asset quality also improved. Nonaccruing loans declined for the sixth consecutive quarter, and total problem assets declined for the fifth consecutive quarter. Meanwhile, our reserve remains strong at 103 percent of total nonaccruing loans at the end of the second quarter, compared with 101 percent in the first quarter and 82 percent a year ago."
 Alvord added, "We also successfully completed a public offering of 17.25 million common shares on April 14. This raised nearly $200 million and boosted our equity base to $1.3 billion. The additional capital gives us the capability to grow our franchise, seek new lending opportunities and play our part in the economic recovery of the region."
 Core earnings (income before securities transactions and provisions for loan losses and foreclosed properties, adjusted for nonrecurring items) for the most recent quarter were $74.2 million, up from $65.6 million in the first quarter of 1992. During the second quarter of 1991, core earnings were $54.0 million.
 For the quarter, net interest income was $199.3 million, compared with $192.8 million in the first quarter of 1992 and $182.3 million in the prior year's second quarter. Six-month net interest income was $392.1 million, compared with $359.0 million for the first half of 1991.
 Net interest margin for the 1992 second quarter was 4.10 percent vs. 3.71 percent a year ago and 4.02 percent during the first quarter of 1992.
 Noninterest income for the second quarter of 1992 was $109.1 million vs. $98.7 million for the year-earlier period. For the first half of 1992, noninterest income totaled $279.5 million vs. $273.2 million for the first half of 1991.
 The corporation's cost control efforts kept noninterest expenses essentially flat from the year ago period. During the second quarter of 1992, noninterest expenses (exclusive of foreclosed properties provision and expenses and FDIC insurance premiums) totaled $204.7 million, down slightly from $207.7 million in the year-ago period. For the first half of 1992, comparable noninterest expenses were $407.5 million vs. $411.1 million for the comparable period in 1991.
 Nonaccruing loans (preliminary) declined by $51.0 million to $926.2 million as of June 30, 1992, vs. $977.2 million at March 31, 1992, and $1.259 billion at June 30, 1991. Nonaccruing loans plus foreclosed properties (preliminary) as of June 30, 1992 were $1.327 billion, down $41.2 million from $1.368 billion at the end of the first quarter of 1992 and down $278.7 million from $1.606 billion at June 30, 1991. At quarter-end, nonaccruing loans plus foreclosed properties were 9.50 percent of total loans plus foreclosed properties, compared to 9.50 percent at March 31, 1992 and 10.85 percent at June 30, 1991.
 The corporation had net charge-offs of $78.7 million during the second quarter. That was down from $83.5 million in net charge-offs in the first quarter of 1992.
 For the second quarter, the provision for loan losses was $48.7 million, down from $68.5 million in the 1992 first quarter. The provision for changes in the carrying value of foreclosed properties decreased slightly to $29.2 million from $30.8 million during the year's first quarter.
 As of June 30, 1992, the corporation's reserve for loan losses was $955.0 million, or 103 percent of nonaccruing loans and 7.04 percent of total loans outstanding.
 Total assets as of June 30, 1992 were $22.6 billion, compared to $22.7 billion at March 31, 1992 and $22.8 billion at June 30, 1991.
 The equity offering significantly strengthened Shawmut National's capital ratios. At June 30, 1992, the corporation's leverage ratio was 5.43 percent, compared with 4.50 percent at March 31, 1992 and 4.06 percent at June 30, 1991. The corporation's Tier 1 risk-based capital ratio (preliminary) was 7.26 percent at quarter-end, compared to 5.72 percent at March 31, 1992 and 5.36 percent at June 30, 1991.
 The corporation had 91.3 million common shares outstanding at period end.
 On June 30, 1992, the corporation identified $885 million of its $5.535 billion securities portfolio as securities held for sale. Assets held for sale are accounted for at the lower of cost or market value. This reclassification had no effect on the results of operations for the second quarter.
 The market value of the total securities portfolio exceeded the carrying value by $104 million at June 30, 1992. The market value of securities held for sale exceeded the carrying value by $46 million at June 30, 1992. There were no securities transactions during the second quarter.
 Shawmut National Corporation is a multibank holding company with dual headquarters in Hartford, Conn., and Boston, Mass. It is the leading bank in southern New England serving consumers and small- to medium-sized businesses through a network of 334 branches. It is also the largest residential mortgage lender in the region and a regional leader in the trust business. The corporation also provides financial services to corporate customers, correspondent banks and governmental units in New England and select national markets.
 SECOND QUARTER 1992 FINANCIAL HIGHLIGHTS


Financial Performance
 -- Net income totaled $8.6 million, or $.09 per common
 share, compared to a net loss of $58.7 million, or $.81 per
 common share, in the 1991 second quarter.
 -- Core earnings rose 13 percent to $74.2 million from $65.6
 million in the 1992 first quarter and 37 percent from $54.0
 million in the year-ago quarter.
 -- The net interest margin rose to 4.10 percent from 4.02
 percent in the first quarter and 3.71 percent in the
 year-ago period.


Asset Quality
 -- Nonaccruing loans (preliminary) declined to $926.2 million
 from $977.2 million at March 31, 1992 and $1.259 billion
 at June 30, 1991.
 -- Nonaccruing loans plus foreclosed properties
 (preliminary) fell to $1.327 billion from $1.368 billion
 at the end of the first quarter and $1.606 billion in the
 prior year period.
 -- Net charge-offs totaled $78.7 million, down from $83.5
 million in the first quarter of 1992 and $101.6 million
 in the 1991 second quarter.
 -- At quarter-end, the reserve for loan losses was $955.0
 million, or 103 percent of nonaccruing loans. At March 31,
 1992, the reserve was $985.0 million, or 101 percent
 of nonaccruing loans. At June 30, 1991, the reserve was
 $1.03 billion, or 82 percent of nonaccruing loans.


Capital
 -- On April 14, the corporation raised $199.3 million
 through a public equity offering, increasing the
 corporation's shareholder equity level to $1.3 billion
 from $1.1 billion at March 31, 1992.
 -- The corporation's Leverage ratio on June 30, 1992 was
 5.43 percent, compared to 4.50 percent on March 31, 1992
 and 4.06 percent on June 30, 1991.
 -- At quarter-end, Tier 1 and Total capital ratios
 (preliminary) were 7.26 percent and 11.19 percent,
 respectively. These ratios remain above regulatory
 minimums. At March 31, 1992, those same ratios were 5.72
 percent and 9.74 percent, respectively. On June 30, 1991,
 the corporation's Tier 1 ratio was 5.36 percent, and its
 Total capital ratio was 9.34 percent.
 SHAWMUT NATIONAL CORPORATION
 FINANCIAL HIGHLIGHTS
 (in millions, except per share data)
 QUARTER ENDED
 JUN 92 MAR 92 DEC 91 SEP 91 JUN 91
 EARNINGS
 Net income (loss) $8.6 $43.3 $2.4 $2.3 $(58.7)
 Preferred dividend .6 .5 .6 .6 .6
 Net income (loss)
 applicable to
 common shares $8.0 $42.8 $1.8 $1.7 $(59.3)
 COMMON SHARE DATA
 Earnings (loss)
 per share $.09 $.58 $.02 $.02 $(.81)
 Book value per share 13.90 14.26 13.62 13.62 13.54
 Average shares 88.8 73.9 73.8 73.7 73.7
 End of period shares 91.3 74.0 73.8 73.8 73.7
 AVERAGE BALANCES
 Loans $13,595 $13,830 $13,863 $13,928 $14,261
 Interest-earning
 assets 19,944 19,715 19,921 19,893 20,340
 Total assets 22,035 21,736 21,968 22,072 22,610
 Core deposits 15,241 14,985 15,167 15,496 15,857
 Interest-bearing
 liabilities 16,696 16,760 17,084 17,111 17,432
 Common equity 1,221 1,071 1,017 1,013 1,042
 Total equity 1,256 1,106 1,052 1,048 1,077
 END OF PERIOD BALANCES
 Total asset $22,639 $22,692 $22,816 $22,846 $22,766
 Core deposits 15,352 15,172 15,735 15,707 15,983
 Common equity 1,269 1,055 1,005 1,005 998
 Total equity 1,304 1,090 1,040 1,040 1,033
 Tier 1 capital-(a) 1,190 974 923 921 913
 Total capital-(a) 1,836 1,659 1,646 1,668 1,593
 RATIOS
 Net income (loss) to:
 Avg. total assets .16pct .80pct .04pct .04pct (1.04)pct
 Average total share-
 holders' equity 2.75 15.76 .92 .88 (21.87)
 Net income (loss)
 applicable to common
 stock to average common
 shareholders' equity 2.65 16.08 .74 .68 (22.82)
 Average total share-
 holders' equity to
 avg. total assets 5.71 5.09 4.79 4.75 4.77
 Risk-based capital ratios:
 Tier 1-(a) 7.26 5.72 5.49 5.49 5.36
 Total capital-(a) 11.19 9.74 9.79 9.94 9.34
 Leverage ratio 5.43 4.50 4.22 4.19 4.06
 Net interest margin
 (tax-equivalent basis) 4.10 4.02 3.89 3.86 3.71
 NOTE: (a)-Based on 1992 rules and June 1992 data are preliminary.
 SHAWMUT NATIONAL CORPORATION
 FINANCIAL HIGHLIGHTS
 (in millions, except per share data)
 Six Months Ended
 JUN 92 JUN 91
 EARNINGS
 Net income (loss) $51.9 $(175.4)
 Preferred dividend 1.1 1.2
 Net income (loss)
 applicable to
 common shares $50.8 $(176.6)
 COMMON SHARE DATA
 Earnings (loss) per share 63 cents $(2.40)
 Book value perare 13.90 13.54
 Average shares 81.4 73.7
 End of period shares 91.3 73.7
 AVERAGE BALANCES
 Loans $ 13,713 $14,536
 Interest-earning
 assets 19,830 20,434
 Total assets 21,880 22,762
 Core deposits 15,113 16,097
 Interest-bearing
 liabilities 16,728 17,492
 Common equity 1,140 1,100
 Total equity 1,175 1,135
 END OF PERIOD BALANCES
 Total assets $ 22,639 $22,766
 Core deposits 15,352 15,983
 Common equity 1,269 998
 Total equity 1,304 1,033
 Tier 1 capital-(a) 1,190 913
 Total capital-(a) 1,836 1,593
 RATIOS
 Net income (loss) to:
 Average total assets .48 pct (1.55) pct
 Average total share-
 holders' equity 8.88 (31.16)
 Net income (loss)
 applicable to common
 stock to average common
 shareholders' equity 8.97 (32.36)
 Average total share-
 holders' equity to
 average total assets 5.37 4.99
 Risk-based capital ratios:
 Tier 1-(a) 7.26 5.36
 Total capital-(a) 11.19 9.34
 Leverage ratio 5.43 4.06
 Net interest margin
 (tax-equivalent basis) 4.06 3.66
 NOTE: (a)-Based on 1992 rules and June 1992 data are preliminary.
 SHAWMUT NATIONAL CORPORATION
 FINANCIAL HIGHLIGHTS
 (in millions)
 QUARTER ENDED
 JUN 92 MAR 92 DEC 91 SEP 91 JUN 91
 INTEREST INCOME
 AND EXPENSES
 Tax-equivalent
 interest and
 dividend income $388.1 $400.3 $432.6 $456.8 $466.4
 Interest expense 184.9 203.3 237.4 263.3 278.2
 Tax-equivalent net
 interest income 203.2 197.0 195.2 193.5 188.2
 Tax-equivalent
 adjustment 3.9 4.2 5.0 5.4 5.9
 Net interest income 199.3 192.8 190.2 188.1 182.3
 Provision for
 loan losses 48.7 68.5 73.8 57.0 101.6
 Net interest income
 after provision
 for loan losses 150.6 124.3 116.4 131.1 80.7
 NONINTEREST INCOME
 Customer service
 fees 38.6 39.1 36.0 37.4 38.8
 Trust and agency fees 30.5 29.5 29.1 29.9 30.6
 Investment securities
 gains 68.4 58.0 15.7 2.5
 Loan servicing 7.5 4.2 6.4 7.0 10.8
 Trading account
 profits 1.9 1.4 1.8 2.2 1.6
 Other 30.6 27.8 17.7 15.2 14.4
 Total 109.1 170.4 149.0 107.4 98.7
 NONINTEREST EXPENSES
 Compensation 91.2 89.3 90.8 91.4 89.4
 Employee benefits 16.8 16.9 14.6 15.3 16.4
 Occupancy 24.6 25.7 18.7 23.4 25.5
 Equipment 15.2 14.9 17.2 14.6 15.5
 Communication 10.2 11.0 10.4 10.5 11.3
 Foreclosed properties:
 Provision 26.2 30.8 36.6 15.0 13.3
 Expenses 7.7 7.2 9.1 7.1 7.7
 Other 55.9 54.5 65.1 58.4 58.7
 Total 250.8 250.3 262.5 235.7 237.8
 Income taxes 2.5 11.1 .5 .5 .3
 Extraordinary credit 2.2 10.0
 Net income (loss) $8.6 $43.3 $2.4 $2.3 $(58.7)
 SHAWMUT NATIONAL CORPORATION
 FINANCIAL HIGHLIGHTS
 (in millions)
 Six Months Ended
 JUN 92 JUN 91
 INTEREST INCOME AND EXPENSES
 Tax-equivalent
 interest and
 dividend income $ 788.5 $ 947.2
 Interest expense 388.2 575.9
 Tax-equivalent net
 interest income 400.3 371.3
 Tax-equivalent
 adjustment 8.2 12.3
 Net interest income 392.1 359.0
 Provision for
 loan losses 117.2 335.6
 Net interest income
 after provision
 for loan losses 274.9 23.4
 NONINTEREST INCOME
 Customer service fees 77.7 78.2
 Trust and agency fees 60.1 61.6
 Investment securities
 gains 68.4 4.4
 Loan servicing 11.7 20.4
 Trading account profits 3.3 3.0
 Other 58.3 105.6
 Total 279.5 273.2
 NONINTEREST EXPENSES
 Compensation 180.6 182.1
 Employee benefits 33.7 32.1
 Occupancy 50.3 52.0
 Equipment 30.1 31.1
 Communication 21.3 22.7
 Foreclosed properties:
 Provision 60.0 25.5
 Expenses 14.9 16.7
 Other 110.2 109.3
 Total 501.1 471.5
 Income taxes 13.6 .5
 Extraordinary credit 12.2
 Net income (loss) $51.9 $(175.4)
 SHAWMUT NATIONAL CORPORATION
 FINANCIAL HIGHLIGHTS
 (in millions)
 QUARTER ENDED
 MAR 92 DEC 91 SEP 91 JUN 91 MAR 91
 LOANS BY TYPE
 Commercial/
 industrial $5,131.6 $5,226.6 $4,890.8 $4,692.0 $4,955.7
 Owner-occupied
 commercial real
 estate 1,671.6 1,730.8 1,794.1 1,854.2 1,861.2
 Real estate investor/
 developer:
 Construction/ other 497.4 555.9 593.1 694.1 745.0
 Commercial mortgage 1,427.4 1,467.0 1,563.5 1,599.3 1,723.8
 Consumer:
 Residential
 mortgage 3,154.6 2,998.6 3,104.0 2,794.2 2,810.9
 Home equity 1,110.6 1,069.1 1,203.7 1,212.6 1,184.2
 Installment/other 573.2 958.6 1,142.3 1,150.0 1,163.9
 Foreign 8.4 8.5 9.2 9.9 10.7
 Total $13,574.8 $14,015.1 $14,300.7 $14,006.3 $14,455.4
 NONACCRUING LOANS
 BY TYPE -(a)
 Commercial/industrial $220.1 $222.3 $222.3 $245.9 $307.6
 Owner-occupied commercial
 real estate 169.2 166.0 182.2 182.6 191.5
 Real estate/investor
 developer:
 Construction and other 128.1 164.2 159.6 231.6 257.9
 Commercial mortgage 239.6 245.5 281.3 276.4 304.3
 Consumer:
 Residential mortgage 144.3 145.5 141.9 144.8 144.8
 Home equity 8.9 11.3 13.4 13.3 13.6
 Installment/other 13.5 19.7 34.1 32.0 36.4
 Foreign 2.5 2.7 2.7 3.3 3.4
 Total $ 926.2 $977.2 $1,037.5 $1,129.9 $1,259.5
 FORECLOSED PROPERTIES
 BY TYPE-(a)
 Real estate investor/
 developer $360.3 $345.5 $315.6 $305.2 $299.1
 Residential mortgage 40.5 45.5 45.3 49.1 47.1
 Total $400.8 $391.0 $360.9 $354.3 $346.2
 NOTE: (a)-June 1992 data are preliminary.
 SHAWMUT NATIONAL CORPORATION
 FINANCIAL HIGHLIGHTS
 (In millions)
 QUARTER ENDED
 JUN 92 MAR 92 DEC 91 SEP 91 JUN 91
 ASSET QUALITY -(a)
 Nonaccruing loans:
 Less than 90 days
 past due $381.6 $325.2 $261.9 $295.5 $340.1
 More than 90 days
 past due 544.6 652.0 775.6 834.4 919.4
 Total nonaccruing
 loans 926.2 977.2 1,037.5 1,129.9 1,259.5
 Foreclosed
 properties 400.8 391.0 360.9 354.3 346.2
 Total nonaccruing
 loans and foreclosed
 properties $1,327.0 $1,368.2 $1,398.4 $1,484.2 $1,605.7
 Restructured loans $118.9 $107.5 $98.5 $79.2 $49.4
 Accruing loans past
 due 90 days or more 59.8 65.8 82.5 74.4 67.7
 RESERVE FOR LOAN LOSSES
 Beginning balance $985.0 $1,000.0 $1,007.0 $1,035.1 $1,035.1
 Provision 48.7 68.5 73.8 57.0 101.6
 Loan charge-offs (89.9) (93.3) (98.2) (94.0) (108.9)
 Recoveries 11.2 9.8 17.4 8.9 7.3
 Net charge-offs (78.7) (83.5) (80.8) (85.1) (101.6)
 Ending balance $ 955.0 $ 985.0 $1,000.0 $1,007.0 $1,035.1
 Net charge-offs to
 avg. loans outstanding
 (annualized) 2.32pct 2.42pct 2.33pct 2.44pct 2.85pct
 Reserve for loan losses
 to loans
 outstanding 7.04 7.03 6.99 7.19 7.16
 Reserve 992 data are prelminary.
 -0- 7/16/92 R
 /CONTACT: Robert L. Guenther (press contact), 203-240-1267, or Thomas Theurkauf (investor contact), 203-728-4872, of Shawmut National/
 (SNC) CO: Shawmut National Corporation ST: Connecticut, Massachusetts IN: FIN SU: ERN


KD-SH -- NE008 -- 9797 07/16/92 13:26 EDT
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