Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, April 15, 1994 TAG: 9404150067
SECTION: BUSINESS PAGE: B-4 EDITION: METRO
SOURCE:
DATELINE: LENGTH: Medium
The Charlotte, N.C.-based banking company said its net income was $217 million, or $1.27 a share, compared with $193 million, or $1.17 a share, in 1993's first quarter.
"This strong first quarter reflects our ability to improve performance in a rising-interest-rate environment," said Chairman Edward Crutchfield.
"We will continue to make selective investments in such areas as capital markets, capital management and card products to further our financial goals," he said.
Ben Jenkins, president of First Union National Bank of Virginia, said the company's performance in Virginia "mirrors very closely" First Union' systemwide results. The company does not report separate figures for each of its banks - in Georgia, Florida, Maryland, North Carolina, South Carolina., Tennessee, Virginia and Washington, D.C.
"The numbers are up nicely against the fourth quarter," Jenkins said., adding the report shows improved income and efficiency.
First Union said key factors in its first-quarter performance included growth in interest income, continued improvement in credit quality and a $48 million decline in expenses unrelated to interest.
The improvement in credit quality included a $120 million reduction in nonperforming assets, lower charge-offs for soured loans and a smaller provision for loan losses.
Net interest income increased to $750 million from $696 million in the first quarter of last year and $733 million in the fourth quarter of 1993.
Nonperforming assets, those that earn no income for the bank, such as repossessed property, declined to $796 million, or 1.7 percent of net loans and foreclosed properties. That compared with $1.268 billion, or 3.07 percent, at the end of the first quarter a year earlier.
Net loans at March 31 were $46.7 billion compared with $40.9 billion at the end of the first quarter of 1993 and $46.9 billion at year-end 1993. Since year-end, commercial and consumer loan growth has been partially offset by the planned run-off of acquired loans and lower balances of mortgages held for sale.
Deposits were $52.1 billion at the end of March compared with $47.9 billion at the end of the first quarter a year ago and $53.7 billion at year-end 1993.
The first quarter of 1993 does not include the June 1993 acquisition of Georgia Federal Bank and First American Metro Corp. in the Washington, D.C., market.
At the end of March, First Union said its assets totaled $72.2 billion.
by CNB