Sign in Subscribe
Commercial banks

First Interstate Bancorp Reports Strong First Quarter Earnings

Strategic Insights

— 2 min read

First Interstate Bancorp, a leading commercial banking company in the United States, today reported income of $215.0 million, or $2.70 per share, for the quarter ended March 31, 1995, a significant increase of 27% over the year-ago period income, before nonrecurring items. Revenue for the quarter was $905.9 million, a 14% increase from $795.0 million in the first quarter of 1994.

Key Takeaways:

  • First Interstate Bancorp reported income of $215.0 million, or $2.70 per share, for the quarter ended March 31, 1995, a 27% increase over the year-ago period.
  • Revenue for the quarter was $905.9 million, a 14% increase from $795.0 million in the first quarter of 1994.
  • Net income was $212.0 million, or $2.66 per share, for the quarter, with a return on equity of 25.8%, up from 21.9% at first quarter 1994.
  • Taxable-equivalent net interest income was $637.5 million, an increase of 18% from $538.5 million a year earlier, resulting from a 36 basis points increase in the net interest margin to 5.31%.
  • Average earning assets grew 10% to an average of $48.4 billion, driven by an increase in average loans and leases, including acquisitions, by $8.8 billion, or 34%, to $34.6 billion.
  • Noninterest income totaled $268.4 million, an increase of $11.9 million, or 5%, from the 1994 first quarter level, driven by a $8.0 million, or 6%, increase in service charges on deposit accounts.
  • Total noninterest expenses were $551.7 million in the 1995 first quarter, including $4.8 million of restructuring charges, with before-charge noninterest expenses increasing by $54.0 million, or 11%, to $546.9 million.
  • Loans charged off, net of recoveries, were $37.2 million in the first quarter of 1995, compared to $25.6 million reported for the comparable 1994 quarter, with the consolidated reserve for credit losses at $921 million, or 2.62% of total loans, down from $1,011 million, or 3.73% of total loans, a year ago.

Statistics:

  • 14% increase in revenue from $795.0 million to $905.9 million in the first quarter of 1994.
  • 27% increase in income from $169.5 million to $215.0 million in the first quarter of 1994.
  • 18% increase in taxable-equivalent net interest income from $538.5 million to $637.5 million in the first quarter of 1994.
  • 36 basis points increase in net interest margin to 5.31% in the first quarter of 1995.
  • 10% growth in average earning assets to $48.4 billion in the first quarter of 1995.
  • 34% increase in average loans and leases, including acquisitions, to $34.6 billion in the first quarter of 1995.
  • 5% increase in noninterest income to $268.4 million in the first quarter of 1995.
  • 11% increase in before-charge noninterest expenses to $546.9 million in the first quarter of 1995.

Sources:

  • BUSINESS WIRE, April 17, 1995
  • First Interstate Bancorp press release, April 17, 1995

Read more