Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, April 18, 1995 TAG: 9504180119
SECTION: BUSINESS PAGE: B-7 EDITION: METRO
SOURCE: |By MAG POFF STAFF WRITER
DATELINE: LENGTH: Medium
NationsBank reported Monday that its first-quarter income rose 6 percent to $443 million from $417 million in last year's first quarter. Earnings per share rose 5 percent to $1.60 from $1.52 a year ago.
Average loans and leases of $103.8 billion in the first quarter of 1995 were more than 13 percent greater than year-earlier levels. This growth, the bank said, was led by increases in commercial lending, excluding real estate, and continued strength in consumer lending, primarily residential mortgages.
Average loans and leases grew $4.1 billion during the quarter, a 17 percent annualized rate, compared with the fourth quarter of 1994.
This loan growth more than offset a decline in the spread of net interest income, the difference between earnings on loans and interest paid on deposits. This drop resulted from the compression between the declining yield on investment securities and market-based funding costs.
Average deposits in this year's first quarter were $99.3 billion vs. $90.3 billion in the year-ago quarter.
Fee income rose 7 percent to $726 million compared with the year-earlier quarter, driven by growth in deposit fees, investment banking revenue and acquisition-related mortgage servicing fees.
Noninterest expenses totaled $1.29 billion compared with $1.22 billion last year. Investment in personnel, particularly in the capital markets and financial products areas, and additional spending on marketing programs accounted for most of the increase.
National Commerce Bancorp., Memphis-based parent of NBC Bank in Roanoke, reported first quarter net income of $11.2 million, or 45 cents per share, compared with year-earlier $10.2 million, or 41 cents per share. Net interest earnings rose to $29.3 million compared with $27.5 a year ago. Noninterest income totaled $12.5 million, a 7.1 percent increase. Net loans grew 9.2 percent
For the first quarter, net loan charge-offs were $1.2 million, compared with $869,000 a year earlier. For the first time in the company's history, there were no nonperforming loans to assets, or those yielding no income.
Kollmorgen Corp., Waltham, Mass., parent of Inland Motor and Industrial Drives in Radford, reported first-quarter net income of $1.2 million, or 6 cents per share, on sales of $53.4 million, compared with year-earlier $850,000, or 3 cents per share, on sales of $44.2 million.
by CNB