Barnett Banks Inc. and First Bank System Inc. reported slight declines
Barnett's net was down 2%, to $145.7 million; First Bank's was off 3%,
Both companies' realignments are "works in progress," said analysts.
"You're seeing more banks, such as Barnett, focus on businesses that get
Extraordinary gains last year made this year's first-quarter results
Minneapolis-based First Bank registered a pretax gain of $46 million a
At $41.8 billion-asset Barnett, net income was down primarily because of
However, earnings per share, aided by the Florida holding company's
Net interest income was $474 million, down slightly because of the late
"In terms of fundamentals, it was a pretty solid quarter," said Sally
Barnett revenues grew 3%, excluding securities transactions. Loans were
Fees contributed substantially. Noninterest income climbed 10% to $215.7
Analysts applauded Barnett's credit quality. Though the company saw some
Noninterest expense ticked up 2% to $415.9 million, primarily due to
At First Bank System, revenue growth was negligible. The Minneapolis
Excluding those gains, operating profits rose 7%, and earnings per share
The $36 billion-asset company, which recently agreed to acquire U.S.
Credit card gains were offset by a higher provision for consumer losses.
Credit card fees were up 23%, trust fees 17% and service charges on
One-time gains last year were attributed to the sale of the mortgage
First Bank said quarterly noninterest expense was $296 million, down
Analysts said they were not concerned about the relatively slight
Joseph Duwan of Keefe, Bruyette & Woods Inc. said gains in corporate
"First Bank is trying to do more with profitable customers and they're
Analysts noted that First Bank has the potential for more traditional
First Bank System Inc.
Minneapolis
Dollar amounts in millions (except per share)
First Quarter 1Q97 1Q96
Net income $171.8 $176.8*
Per share 1.27 1.26*
ROA 2.00% 2.03%*
ROE 23.10% 23.20%*
Net interest margin 4.98% 4.86%
Net interest income 384.8 379.3
Noninterest income 225.8 383.5*
Noninterest expense 296.0 424.4*
Loss provision 37.0 31.0
Net chargeoffs 41.3 33.5
Balance Sheet 3/31/97 3/31/96
Assets $36,000.0 $36,572.0
Deposits 23,423.0 24,346.0
Loans 27,173.0 26,878.0
Reserve/nonp. loans 446% 467%
Nonperf. loans/loans 0.42% 0.43%
Nonperf. assets/assets 0.37% 0.43%
Nonperf. assets/loans + OREO 0.50% 0.58%
Leverage cap. ratio 6.90% 6.70%
Tier 1 cap. ratio 7.20% 7.10%
Tier 1+2 cap. ratio 12.00% 11.90%
*After nonrecurring items.
Barnett Banks Inc.
Jacksonville, Fla.
Dollar amounts in millions (except per share)
First Quarter 1Q97 1Q96
Net income $145.7 $148.2
Per share 0.78 0.74
ROA 1.41% 1.44%
ROE 19.34% 17.89%
Net interest margin 5.28% 5.27%
Net interest income 474.0 475.2
Noninterest income 215.7 215.6
Noninterest expense 415.9 407.6
Loss provision 31.8 41.6
Net chargeoffs 31.8 41.4
Balance Sheet 3/31/97 3/31/96
Assets $41,848.0 $41,519.0
Deposits 33,839.0 33,930.0
Loans 30,701.0 30,378.0
Reserve/nonp. loans 259% 279%
Nonperf. loans/loans 0.60% 0.60%
Nonperf. assets/assets 0.56% 0.59%
Nonperf. assets/loans + OREO 0.76% 0.80%
Leverage cap. ratio 7.50% 6.31%
Tier 1 cap. ratio NA NA
Tier 1+2 cap. ratio NA NA