Union Bank Reports Significant Net Income Growth in Third Quarter 1995

Strategic Insights -

Union Bank reported a notable increase in net income for the third quarter of 1995, more than doubling the earnings from the same period in 1994. The bank's net income applicable to common stock was $57.8 million, up from $22.6 million in the third quarter of 1994. This significant growth can be attributed to an increase of $367 million in average loans, a reduction in FDIC insurance premium, and lower credit expenses.

Key Takeaways:

  • Union Bank's net income for the third quarter of 1995 was $57.8 million, a significant increase from $22.6 million in the same period in 1994.
  • The bank's net income applicable to common stock was $1.51 per share, up from $0.56 per share in the third quarter of 1994.
  • Average loans increased by 11.4% from the third quarter of 1994 to $13.3 billion, and up 2.8% from the second quarter of 1995.
  • Nonperforming and renegotiated assets were $133.3 million, down $28.6 million from the prior quarter end and $146.8 million from a year earlier.
  • The provision for loan losses was $12.0 million for the third quarter, down from $15.0 million in the second quarter of 1995 and $20.0 million in the third quarter of 1994.
  • Net charge-offs for the third quarter were $9.9 million compared to $50.6 million for the comparable quarter a year ago and $13.2 million for the second quarter of this year.
  • The $342.1 million allowance for loan losses at quarter end provided 283.6% coverage of nonperforming and renegotiated loans, up from 210% coverage at June 30, 1995.

Statistics:

  • Net income for the third quarter of 1995: $57.8 million
  • Net income applicable to common stock for the third quarter of 1995: $1.51 per share
  • Increase in average loans from the third quarter of 1994 to $13.3 billion: 11.4%
  • Net interest income for the third quarter of 1995: 14.6% above the same quarter in 1994
  • Nonperforming and renegotiated assets at September 30, 1995: $133.3 million, down 17.7% from the prior quarter end and 52.4% from a year earlier
  • Provision for loan losses for the third quarter: $12.0 million
  • Net charge-offs for the third quarter: $9.9 million
  • Allowance for loan losses at quarter end: $342.1 million, providing 283.6% coverage of nonperforming and renegotiated loans

Sources:

  • Union Bank (Business Wire, Oct. 17, 1995)
  • Stephen L. Johnson, Union Bank, 415/705-7393 (PR)
  • John A. Rice Jr., Union Bank, 415/705-7330 (IR)