First Union Sees 3d-Quarter Drop
First Union Corp. announced Wednesday a third-quarter earnings estimate of 60 cents to 68 cents a share, down from 70 cents in 1990 quarter.
The Charlotte, N.C.-based company also expects a loan-loss provision similar to second quarter's $114 million.
First Union said the earnings estimate, disclosed in its just-released 10Q report filed with the Securities and Exchange Commission, assumes the economy in its market areas will not deteriorate further and interest rates will no increase materially. The company, with $39.7 billion in assets, operates banks in Florida, Georgia, and the Carolinas.
|More Normal Levels' Foreseen
"We expect our nonperforming assets and loan-loss provision to return gradually to more normal levels, probably after the third quarter," First Union said. It reported June 30 nonperforming assets of $1.2 billion - 4.40% of loans and foreclosed property.
First Union has also told analysts that nonperforming assets in the third quarter could rise as fast as in the second, which would be about 10%. The company expects sales of investment securities and mortgage-servicing rights to add about $40 million to noninterest income.