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THE BANK OF NEW YORK COMPANY, INC. REPORTS $1.37 FIRST QUARTER E.P.S., A 41 PCT. INCREASE OVER LAST YEAR; $125M NET INCOME A QUARTERLY RECORD

 NEW YORK, April 14 /PRNewswire/ -- The Bank of New York Company, Inc. (NYSE: BK) today reported first quarter net income of $125 million, or $1.37 per fully diluted common share, compared with net income of $80 million, or 97 cents per fully diluted common share, in the first quarter of 1992. Wider spreads -- resulting from a favorable interest rate environment, lower nonperforming assets, and a continuing shift in asset mix -- contributed to the increase in earnings. Fee income was strong, especially from credit cards, trust and investment, and securities and other processing. A lower provision for loan losses, decreased other real estate expense, continued control of operating expenses, and the acquisition of 62 branches of Barclays Bank of New York, N.A. (Barclays) on Dec. 11, 1992, also helped to increase earnings.
 Nonperforming assets decreased by $71 million during the quarter, or 8 percent, to $860 million -- the seventh consecutive quarterly decline. Nonperforming commercial real estate assets decreased by $42 million, or 13 percent, to $289 million at March 31.
 The nonperforming asset ratio declined to 3.1 percent from 3.4 percent at Dec. 31 and 4.6 percent one year ago. The allowance for loan losses as a percent of nonperforming loans increased to 153 percent from 139 percent at Dec. 31, 1992, and 103 percent at March 31, 1992. The allowance for loan losses as a percent of all nonperforming assets was 115 percent, compared with 108 percent at Dec. 31, and 76 percent one year ago.
 During the quarter, common equity increased by $44 million by the conversion of $57 million of convertible preferred stock. Also in the first quarter, the company adopted Statement of Financial Accounting Standards (FAS) 109, "Accounting for Income Taxes", which requires the company to change from the deferred method to the liability method. The company has elected to adopt this change by restating prior period financial statements. Shareholders' equity has been reduced by a $46 million charge to retained earnings in prior period financial statements.
 The company's estimated Tier I capital and total capital ratios increased to 8.01 percent and 12.82 percent at March 31, from 7.42 percent and 12.34 percent at Dec. 31, and 5.96 percent and 9.70 percent at March 31, 1992. Tangible common equity as a percent of total assets was 6.45 percent at March 31, compared with 5.85 percent at Dec. 31, and 4.49 percent one year ago.
 Return on average assets in the first quarter was 1.20 percent -- a record for the company -- and compares with .96 percent in the fourth quarter of 1992 and .77 percent in the first quarter of 1992.
 Return on average common equity was 15.15 percent this quarter compared with 12.61 percent in the fourth quarter of 1992 and 11.50 percent in the first quarter of last year.
 On Jan. 29, 1993, the company signed a merger agreement to acquire National Community Banks, Inc. (NCB), a 105-branch bank holding company, headquartered in West Paterson, N.J. The transaction will be accounted for by the pooling-of-interests method and is subject to approvals by regulators and NCB's shareholders. Currently, the application for the acquisition has been filed with and is under review by the Federal Reserve Board and is expected to close in the second half of 1993.
 NONPERFORMING ASSETS
 (dollars in millions)
 Change
 3/31/93 12/31/92 3/31/92 1Q 1993 vs.
 1Q 1992
 Loans:
 HLT $ 84 $ 92 $ 174 (52) pct
 Commercial Real Estate 97 143 252 (62)
 Other Commercial 118 139 259 (54)
 Foreign 97 89 94 3
 LDC (A) 107 109 46 133
 Other 146 150 131 12
 Total Loans 649 722 956 (32)
 Other Real Estate 192 188 310 (38)
 Other Assets 19 21 22 (14)
 Total $ 860 $931 $1,288 (33)
 Nonperforming Asset Ratio 3.1 pct 3.4 pct 4.6 pct
 Allowance/Nonperforming Loans 153.0 138.9 102.9
 Allowance/Nonperforming Assets 115.5 107.7 76.4
 (A) -- Excludes $117 million of reduced rate Philippine obligations secured by U.S. Treasury bonds.
 Total nonperforming assets decreased by $71 million this quarter, or 8 percent. Since their peak level at June 30, 1991, nonperforming assets have declined by $988 million, or 53 percent.
 Highly leveraged transaction (HLT) nonperforming loans decreased by $8 million from Dec. 31, as a result of $1 million in payments and $7 million in charge-offs.
 Nonperforming commercial real estate assets, which , and a $273 million, or 49 percent, decrease from $562 million one year ago. There were no significant new nonperforming commercial real estate loans in the first quarter. During the quarter, payoffs were $1 million, sales of four properties were $19 million, returns to accrual status were $4 million, and charge-offs and writedowns totaled $18 million. Total commercial real estate exposure was approximately 8 percent of total loans at March 31, among the lowest exposures of the major banking companies in the country.
 LOAN LOSS PROVISION AND NET CHARGE-OFFS
 (in millions)
 1st 4th 1st
 Quarter Quarter Quarter
 1993 1992 1992
 Provision $ 90 $ 93 $ 133
 Regular Net Charge-offs:
 HLT (7) (12) (5)
 Commercial Real Estate (18) (29) (22)
 Other Commercial (32) (21) (72)
 Consumer (36) (33) (42)
 Foreign (2) 7 (6)
 Other (5) (7) (10)
 Total (100) (95) (157)
 Acquisitions -- 56 --
 Increase (Decrease) in
 Regular Allowance $ (10) $ 54 $ (24)
 Medium-Term LDC Net
 (Charge-offs) Recoveries $ -- $(12) $ 1
 Other Real Estate Expense 4 11 20
 The total allowance for loan losses, which includes the medium-term LDC allowance, was $993 million, or 3.65 percent of loans at March 31, compared with $1,003 million, or 3.66 percent of loans at Dec. 31, 1992. The medium-term LDC loan loss allowance was $124 million at quarter-end, or 73 percent of total medium-term LDC loans.
 HIGHLY LEVERAGED TRANSACTIONS
 Highly leveraged transaction loans continued to decline substantially. At March 31, they totaled $1,338 million, compared with $1,658 million at year-end, a reduction of $320 million, or 19 percent.
 NET INTEREST INCOME
 On a taxable equivalent basis, net interest income amounted to $334 million in the first quarter of 1993, compared with $308 million in the same period of 1992. The net interest rate spread was 2.98 percent in the first quarter of 1993 compared with 2.83 percent in the fourth quarter and 2.73 percent one year ago. The net yield on interest earning assets rose to 3.69 percent in the first quarter of 1993 from 3.53 percent in the fourth quarter and 3.43 percent the same period last year.
 NONINTEREST INCOME
 Noninterest income increased 11 percent to $320 million in the first quarter, compared with $288 million in the same period last year. Strong performance in credit cards, trust and investment, and securities and other processing, combined with the Barclays acquisition, contributed significantly to the increase.
 Securities gains were $26 million and $15 million in the first quarters of 1993 and 1992.
 First quarter foreign exchange profits and trading activities totaled $23 million, compared with $35 million in the first quarter of 1992.
 TRUST, INVESTMENT, AND PROCESSING FEES
 (dollars in millions)
 1st 1st
 Quarter Quarter
 1993 1992 Change
 Trust and Investment $ 31 $ 29 7 percent
 Processing:
 Securities $ 76 $ 66 15
 Other 36 33 9
 Total Processing $112 $ 99 13
 In trust and investment, special strength was noted in personal trust. Significant growth in the securities processing area occurred in government securities clearance, securities lending, mutual fund custody, stock transfer, and corporate trust. In other processing, there was good growth in funds transfer and trade finance.
 SERVICE CHARGES AND FEES
 Service charges and fees, exclusive of other processing fees, grew by 14 percent to $108 million in the first quarter from $95 million last year. Strong growth in credit cards contributed to the increase, as the number of card accounts increased by 22 percent to 4.0 million, and managed outstandings increased by 24 percent to $5.2 billion. Fee income from syndication activities and the Barclays acquisition also contributed to the improvement.
 NONINTEREST EXPENSE AND INCOME TAXES
 Total noninterest expense was $352 million in the first quarter of 1993 compared with $327 million in 1992, an increase of 8 percent. Furniture and equipment expense declined by 9 percent to $20 million for the quarter compared with $22 million in the same quarter in 1992. Other real estate expense decreased sharply to $4 million from $20 million in the first quarter of 1992.
 Salaries increased 10 percent in the first quarter to $133 million from $121 million in the same period last year, and profit sharing increased to $13 million from $8 million. Other employee benefits -- primarily incentive compensation and health care expenses -- were up 33 percent to $36 million from $27 million in the first quarter of 1992. Post-retirement benefits accrued during the quarter under FAS 106 represented $2.5 million of the increase. The Barclays acquisition contributed significantly to the increase in these costs.
 The effective tax rate for the first quarter of 1993 was 37.2 percent, compared with 33.9 percent for the same period last year.
 THE BANK OF NEW YORK COMPANY, INC.
 Financial Highlights (Unaudited)
 (dollars in millions, except per share amounts)
 Three months ended March 31 1993 1992 Change
 Net income $125 $80 56.3 pct
 Per common share:
 Primary earnings $1.45 $1.02 42.2
 Fully diluted earnings 1.37 0.97 41.2
 Cash dividends 0.38 0.38 --
 Return on average common
 shareholders' equity 15.15 pct 11.50 pct
 Return on average assets 1.20 0.77
 As of March 31
 Assets $40,047 $40,305 -0.6 pct
 Loans 27,178 27,770 -2.1
 Securities 3,699 4,031 -8.2
 Medium-term LDC loans 169 210 -19.5
 Reserve for medium-term LDC loans 124 135 -8.1
 Deposits -- Domestic 19,999 18,573 7.7
 -- Foreign 7,187 10,672 -32.7
 Long-term debt 1,695 1,229 37.9
 Preferred shareholders' equity 342 394 -13.2
 Common shareholders' equity 3,229 2,515 28.4
 Common shareholders' equity per share 38.69 35.31 9.6
 Market value per share of common stock 57.75 41.63 38.7
 Allowance for loan losses as a
 percent of loans 3.65 pct 3.54 pct
 Tier I capital ratio 8.01 5.96
 Total capital ratio 12.82 9.70
 Leverage ratio 7.65 5.99
 Tangible common equity ratio 6.45 4.49
 Certain amounts for 1992 have been restated in connection with the adoption of Statement of Financial Accounting Standards No. 109.
 -0- 4/14/93
 /CONTACT: Michael M. Pascale, VP, 212-495-1041; Pierre S. Brull, VP, 212-495-1721; or Margaret Southerland, assistant VP, 212-495-1725, all of the Public and Investor Relations Dept. of the Bank of New York Company/
 (BK)


CO: The Bank of New York Company, Inc. ST: New York IN: FIN SU: ERN

GK-LR -- NY013 -- 5601 04/14/93 10:23 EDT
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