Mellon net off; 4 others post increases.

Five northeastern banks posted mixed results in third-quarter earnings reports Tuesday.

Mellon Bank Corp. posted net income of $78 million, a 44% decline from the same period last year as a result of one-time expenses related to its August acquisition of Dreyfus Corp.

Had the Pittsburgh-based bank not taken $89 million in merger-related charges, it would have earned $167 million, or $1.53 per share, a 20.1% increase from the $139 million, or $1.25 per share, it earned in last year's third quarter.

Despite the hit Mellon took on Dreyfus, its net income exceeded analysts' expectations. The $36.1 billion-asset banking company saw increases in net interest revenue, a strong net interest margin, and impressive loan growth.

Mellon also reported an $830 million increase in average loans from the second quarter total, to $29 billion this quarter, for 14% growth on an annualized basis.

Another Pittsburgh-based bank, Integra Financial Corp., reported net income of $41.4 million, up 12% from 1993's third-quarter income of $37.2 million.

The $13.8 billion-asset bank's growth came mostly from improved asset quality. After the sale of some problem loans in the quarter, nonperformers declined to $119 million, from $189 million in the same quarter the year before.

Three New England banks also reported gains in third-quarter net income. Boston-based BayBanks Inc. said earnings rose 61.1%, to $29 million, from $18 million the year before. Earnings per share were $1.51, compared to 95 cents per share in the third quarter of 1993.

State Street Boston Corp. saw a 12% increase in profits, to $51.8 million, or 67 cents per share, for the third quarter.

It attributed the improvement to overseas expansion efforts and growth in retirement assets under management.

Shawmut National Corp., which is based in Hartford, Conn., and Boston, earned $85.3 million in the third quarter, or 68 cents per share, up 3% from the $82.6 million, or 69 cents per share, earned in the same period last year.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER