BUFFALO, N.Y. - First Empire State Corp. reported second-quarter net income of $27.8 million, including $7.6 million of securities gains after taxes.
Net income excluding the securities gains rose 24%, to $20.2 million, or $2.74 a share. A year earlier the company earned $2.24 a share.
The annualized return on average assets was 0.91%, compared with 0.82% in the 1991 second quarter, while return on average equity was 14.55%, compared with 13.75%.
First Empire, which has $8.8 billion in assets, maintained its profitability despite an increase in the loan-loss provision to $24.1 million from $11.5 million in the 1991 quarter. Non-performing loans rose by $21.6 million to $97.7 million.
The company also saw a 29% increase in noninterest expenses other than salaries and benefits, to $70.2 million, which it attributed to a computer upgrade and writedowns of mortgage servicing and venture capital assets.