Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, January 21, 1992 TAG: 9201210110
SECTION: BUSINESS PAGE: A3 EDITION: METRO
SOURCE:
DATELINE: LENGTH: Medium
REPORTED EARNINGS
NationsBank Corp.NationsBank Corp. reported Monday it had net earnings of $202 million last year, equal to 76 cents a share. But for 1991's fourth quarter, the Charlotte, N.C.-based bank said it had a net loss of $244 million, or $1.08 a share.
The results announced Monday reflect the combination of C&S/Sovran Corp. and NCNB Corp., which merged Dec. 31 to form NationsBank, and include merger-related expenses of $330 million for the year and $314 million for the fourth quarter.
The combined companies earned net income of $595 million, or $2.61 a share, for all of 1990, and $38 million, or 13 cents a share, for the quarter.
Excluding the restructuring charge, earnings for 1991 would have been $489 million, or $2.03 a share, and fourth-quarter earnings would have been $28 million, or 9 cents a share.
The 1991 results also included a $1.6 billion provision for credit losses, significantly higher than 1990's $1 billion and about $60 million in various nonrecurring year-end charges.
NationsBank President Hugh McColl said the company was able to absorb $2 billion of credit and merger charges and still report net income for the year. Taking the heavy charges in 1991, he said, enhanced future earnings potential.
McColl said NationsBank should benefit from the economic recovery that it expects to begin by mid-year. He predicted the merger will save $450 million a year by the end of 1994.
Average loans and leases grew 2 percent in 1991 to $70.6 billion. A 5 percent drop in commercial real estate and construction loans was more than offset by 8 percent growth in consumer-based loans.
Average deposits in 1991 were $87.6 billion, up 3 percent. Pretax gains on the sale of investment securities were $454 million in 1991 and $67 million in 1990.