Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, July 13, 1995 TAG: 9507190009
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
SOURCE: MAG POFF STAFF WRITER
DATELINE: LENGTH: Medium
First Union reported it earned $249 million or $1.45 per share for the April-June quarter. This was an increase of 11.6 percent compared to $223 million or $1.32 in the same period last year and of 8.3 percent or $1.32 in the first quarter this year.
In the first half, the company had income of $479 million or $2.77 per share compared with $440 or $2.59 a share in the first half of 1994.
John R. Georgius, president of Charlotte, N.C.-based First Union, said the results were in the top range of the estimate made June 19 when it announced its plan to merge with First Fidelity Bancorp. of Newark, N.J.
He said the results confirm that both the bank's fundamental trends and the initiatives such as creating a capital markets division have produced continued earnings momentum.
He listed several key factors in the second-quarter results.
He said net interest income grew for the 23rd consecutive quarter to a record $836 million, while loans increased 8 percent to $60 billion.
Meanwhile, nonperforming assets declined to 0.95 percent of net loans and foreclosed properties, and other income was up 8 percent to $329 million.
The bank said loan growth was strong in all categories, particularly in the consumer portfolio, which was led by direct consumer lending through branches, credit cards and home equity lending. Residential mortgages also increased through acquisition of three thrifts during the quarter.
The company has assets of $83.1 billion.
First Union also announced a 13 percent increase in its dividend to 52 cents a share, or $2.08 on an annualized basis, payable Sept. 15 to stockholders on Aug. 31.
by CNB