NationsBank reports strong third quarter Excluding charges, pretax income soars

October 19, 1993|By David Conn | David Conn,Staff Writer

NationsBank Corp. reported yesterday that its third-quarter operations were among the strongest in the company's history.

The Charlotte, N.C.-based company's net income dropped slightly during the third quarter, but mostly because of a one-time charge due to its acquisition of Baltimore-based MNC Financial Inc.

Excluding that $30 million charge as well as other one-time items, the nation's fourth-largest banking company reported a 56 percent gain in income before taxes.

NationsBank also said that MNC, in its last three months as an independent company, had profits almost 7.5 times higher than a year earlier. MNC earned $33.7 million in the third quarter, up from $4.5 million a year earlier.

"The third quarter of 1993 was the most successful in the history of NationsBank," said Chairman and Chief Executive Officer Hugh L. McColl Jr.

Despite NationsBank's strong core earnings, the Charlotte, N.C., company's stock fell $1.875 a share yesterday, to close at $48.875. Investors feared that other banks would follow Morgan Guaranty Corp.'s decision to cut its prime lending rate.

Disregarding the effects of securities gains, and both the $30 million MNC charge and a $55 million gain last year from the sale of a mortgage company, NationsBank would have seen earnings rise to $507 million from $324 million in the third quarter of 1992.

NationsBank Corp.

Ticker

Symbol ... ... ... ... ... ... Yesterday's

... ... ... ... ... ... ... Cls. Chg.

... .. ... ... ... ... ... ... 48 7/8 -1 7/8

Period ended

Sept. 30 ... ... ... ... 3rd qtr. ... ... ... Year ago ... ... Chg.

Net Income .. .. ... ... $341,000 ... ... ... $350,000 ... ... -2.6%

Primary EPS ... .. .. .. $1.33 ... .. ... ... $1.40 ... .. ... -5.0%

Annualized return

on avg. assets ... .. .. 1.0% ... ... ... ... 1.22%

Add. to allowance

for loan losses .. .. .. $100 ... ... ... ... $150 ... ... ... -33.3%

... ... ... ... .. .. .. 9 mos. ... ... .. .. Year ago ... ... Chg.

Net Income ... ... .. .. $1,128,000 ... .. .. $911,000 ... ... +23.8%

Primary EPS ... .. .. .. $4.42 ... ... ... .. $3.69 ... .. ... +19.8%

Annualized

return on assets ... ... 1.19% ... ... ... .. 1.06%

Add. to allowance

for loan losses ... ... $330 ... ... .. .. .. $565 ... ... ... -41.6%

Balances as of ... ... 9/30/93 ... ... .. .. 9/30/92

Assets ... ... ... ... $139,453,000 .. .. .. $117,926,000 .. .. +18.3%

Deposits ... ... .. .. $79,594,000 ... .. .. $80,447,000 ... .. -1.1%

Loans outst. ... .. .. $80,539,000 ... .. .. $70,260,000 ... .. +14.6%

Loan loss

reserve ... ... ... .. $1,585,000 ... ... .. $1,674,000 ... ... -5.3%

Figures in thousands (except per share data)

@

Primerica Corp.

Ticker ... ... ... ... ... ... ... ... ... Yesterday's

Symbol ... ... ... ... ... ... ... ... ... Cls. ... ... Chg.

PA ... ... ... ... ... ... ... ... ... ... 46 1/2 .. .. .. - 1/2

Period ended

Sept. 30 ... ... ... 3rd qtr. ... ... ... Year ago ... ... Chg.

Revenue ... .. .. .. $2,016 .. .. ... ... $1,246 ... .. .. +61.8%

Net Income ... .. .. $259 ... ... ... ... $165 ... ... ... +56.7%

Primary EPS .. .. .. $1.03 ... .. ... ... $0.73 .. ... ... +41.1%

... ... ... .. .. .. 9 mos. .. .. ... ... Year ago ... ... Chg.

Revenue ... .. .. .. $4,602 .. .. ... ... $3,856 ... .. .. +19.3%

Net Income ... .. .. $635 ... ... ... ... $507 ... ... ... +25.4%

Primary EPS .. .. .. $2.62 .. ... ... ... $2.26 .. ... ... +15.9%

Figures in thousands (except per share data.)

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