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For further information, contact
Kevin R. Stitt, 314/466-7662
BOATMEN'S REPORTS 19 PERCENT GAIN
---------------------------------
IN FOURTH-QUARTER NET INCOME;
-----------------------------
RECORD FULL-YEAR EPS OF $3.40
-----------------------------
ST. LOUIS, January 19, 1995 -- Boatmen's Bancshares, Inc.
(NASDAQ:BOAT) today reported that fourth-quarter 1994 net income
increased 19 percent to $92.0 million, or $.88 per common share,
from $77.1 million, or $.75 per common share, in the fourth
quarter of 1993. Return on assets and return on equity improved
to 1.31 percent and 16.67 percent, respectively, from 1.18
percent and 14.91 percent, respectively, for the prior-year
period.
For full-year 1994, net income rose nearly 12 percent to a
record $355.3 million, or $3.40 per share, from $317.4 million,
or $3.07 per share. Return on assets was 1.29 percent and return
on equity was 16.31 percent compared with 1.27 percent and 15.99
percent, respectively, for 1993.
"Our fourth-quarter performance is consistent with the
pattern of strong loan growth and excellent credit quality that
has been evident throughout 1994," explained Andrew B. Craig,
III, chairman and chief executive officer. "Economic activity in
our markets remains vibrant, providing us with good momentum
going into 1995."
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The improved performance for the fourth quarter and year
reflected higher net interest income and non-interest income, as
well as lower provisions for loan losses.
Loans at December 31 totaled $16.5 billion, an increase of
more than 11 percent over year-earlier levels, and up 2.3 percent
from September 30, 1994. "The growth in loans was evident
throughout our nine-state operating territory," Craig pointed
out.
Net interest income for the fourth quarter increased to
$260.2 million from $246.6 million in the fourth quarter of 1993
and from $258.6 million in the 1994 third quarter. The net
interest margin for the quarter was 4.29 percent, compared with
4.41 percent in the fourth quarter of 1993 and 4.33 percent in
the 1994 third quarter.
Non-interest income was $136.0 million, up from $134.0
million the year before. Trust fees and credit card fees were
higher while investment banking fees and mortgage banking
revenues were lower.
Non-interest expense for the quarter was $252.4 million,
down from $253.8 million in the prior-year's period. The prior
year included merger-related charges of approximately $4.7
million associated with the First Amarillo acquisition.
The provision for loan losses was $4.4 million for the quarter,
down from $11.9 million the year before. Net loan charge-offs
declined to $9.4 million from $12.5 million in the fourth quarter
of 1993. For full-year 1994, the provision for loan losses was
$24.3 million and net loan charge-offs were $24.2 million versus
$60.2 million and $34.0 million in 1993, respectively.
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Non-performing assets decreased 35 percent to $185.6 million
or 1.12 percent of total loans and foreclosed property at the end
of 1994, compared with $285.5 million or 1.90 percent the year
before. At September 30, 1994, non-performing assets were $257.2
million, or 1.58 percent of total loans and foreclosed property.
"As a percentage of total loans and foreclosed property, non-
performing assets are at the lowest level in more than 10 years,"
Craig observed.
The reserve for loan losses represented 273 percent of non-
performing loans at December 31, 1994, up from 224 percent at
September 30, 1994, and 195 percent at year-end 1993.
Tier 1 and total risk-based capital ratios were
approximately 10.55 percent and 13.94 percent, respectively,
compared with 10.67 percent and 14.42 percent, respectively, at
the end of 1993. Both ratios are significantly above the
regulatory guidelines for a "well-capitalized" bank of 6 percent
and 10 percent, respectively. The leverage ratio was 7.16
percent versus 6.93 percent the year before.
Boatmen's Bancshares, with assets of $28.9 billion, is one
of the 30 largest U.S. bank holding companies, operating more
than 400 locations in nine states. Boatmen's also ranks among
the nation's largest providers of trust services with
approximately $36 billion in assets under management.
-tables attached-
SUMMARY OF SELECTED FINANCIAL INFORMATION Page 6
BOATMEN'S BANCSHARES, INC.
Quarter ended December 31 Year ended December 31
------------------------- -----------------------------
(in millions except per share data) 1994 1993 % change 1994 1993 % change
- ----------------------------------- ------ ------ -------- -------- ------ --------
EARNINGS
- --------
Net interest income $260.2 $246.6 5.5 % $1,023.9 $974.5 5.1 %
Provision for loan losses 4.4 11.9 (69.2) 24.3 60.2 (59.6)
Noninterest income 136.0 134.0 1.5 526.5 500.4 5.2
Noninterest expense 252.4 253.8 (0.6) 984.6 950.4 3.6
Net income 92.0 77.1 19.3 355.3 317.4 11.9
SHARE DATA
- ----------
Net income $0.88 $0.75 17.3 % $3.40 $3.07 10.7 %
Dividends declared 0.34 0.31 9.7 1.30 1.18 10.2
Book value (period end) 21.10 20.49 3.0 21.10 20.49 3.0
Tangible book value (period end) 18.69 17.84 18.69 17.84 4.8
Shares outstanding (period end) 104.3 104.1 0.2
Average shares outstanding 104.6 103.5 1.1
SELECTED FINANCIAL RATIOS
- -------------------------
Return on assets 1.31 % 1.18 % 1.29 % 1.27 %
Return on total equity 16.67 14.91 16.31 15.99
Net interest margin 4.29 4.41 4.32 4.53
Capital ratios
Equity to assets 7.61 8.00
Risk-based capital:
Tier I capital 10.55 10.67
Total capital 13.94 14.42
Tier 1 leverage ratio 7.16 6.93
FINANCIAL POSITION AT PERIOD END
- --------------------------------
Total assets $28,927.2 $26,654.0 8.5 %
Loans 16,480.4 14,825.9 11.2
Reserve for loan losses 342.0 341.1 0.3
Deposits 22,189.6 20,909.0 6.1
Long-term debt 515.1 486.3 5.9
Equity 2,200.8 2,133.3 3.2
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CONSOLIDATED STATEMENT OF INCOME Page 7
BOATMEN'S BANCSHARES, INC.
Quarter ended December 31 Year ended December 31
-------------------------------- ----------------------------
(in thousands) 1994 1993 1994 1993
-------------- ------------ ------------ ------------
Interest income
Interest and fees on loans $343,025 $287,592 $1,265,749 $1,119,802
Interest on short-term investments 874 257 3,424 1,997
Interest on Federal funds sold and securities
purchased under resale agreements 6,790 2,380 13,623 13,361
Interest on held to maturity securities:
Taxable 50,025 92,383 178,875 381,278
Tax-exempt 13,338 13,907 54,771 58,381
-------------- ------------ ------------ ------------
Total interest on held to maturity securities 63,363 106,290 233,646 439,659
Interest on available for sale securities 61,129 7,169 248,707 29,057
Interest on trading securities 377 1,063 2,524 2,570
-------------- ------------ ------------ ------------
Total interest income 475,558 404,751 1,767,673 1,606,446
-------------- ------------ ------------ ------------
Interest expense
Interest on deposits 148,070 128,331 534,173 528,844
Interest on Federal funds purchased and other
short-term borrowings 55,497 19,126 164,381 62,367
Interest on capital lease obligation 944 965 3,779 3,858
Interest on long-term debt 10,870 9,704 41,411 36,905
-------------- ------------ ------------ ------------
Total interest expense 215,381 158,126 743,744 631,974
-------------- ------------ ------------ ------------
Net interest income 260,177 246,625 1,023,929 974,472
Provision for loan losses 4,400 11,853 24,306 60,184
-------------- ------------ ------------ ------------
Net interest income after provision for
loan losses 255,777 234,772 999,623 914,288
-------------- ------------ ------------ ------------
Noninterest income
Trust fees 40,622 37,895 156,476 149,580
Service charges 41,001 41,250 163,049 153,201
Credit card 20,685 14,934 69,310 54,389
Investment banking profits and fees 7,135 8,657 30,707 35,600
Securities gains, net 1,409 1,753 6,201 2,807
Other 25,140 29,481 100,784 104,782
-------------- ------------ ------------ ------------
Total noninterest income 135,992 133,970 526,527 500,359
-------------- ------------ ------------ ------------
Noninterest expense
Staff 120,229 119,147 489,544 466,480
Net occupancy 16,748 17,140 67,190 69,429
Equipment 20,960 21,132 83,081 77,527
FDIC insurance 11,249 11,381 45,405 44,385
Credit card 12,050 9,981 42,218 35,205
Intangible amortization 8,234 9,578 33,216 30,571
Advertising 9,705 8,567 30,492 27,817
Foreclosed property costs, net (46) (1,235) (4,011) (4,790)
Other 53,231 58,110 197,507 203,797
-------------- ------------ ------------ ------------
Total noninterest expense 252,360 253,801 984,642 950,421
-------------- ------------ ------------ ------------
Income before income tax expense 139,409 114,941 541,508 464,226
Income tax expense 47,401 37,819 186,176 146,807
-------------- ------------ ------------ ------------
Net income $92,008 $77,122 $355,332 $317,419
============== ============ ============ ============
Net income per share $0.88 $0.75 $3.40 $3.07
============== ============ ============ ============
Dividends declared per share $0.34 $0.31 $1.30 $1.18
============== ============ ============ ============
Average shares (YTD) 104,630,542 103,489,599
============== ============ ============ ============
Returns:
Return on assets 1.31 % 1.18 % 1.29 % 1.27 %
Return on equity 16.67 14.91 16.31 15.99
Preferred dividends declared $20 $21 $80 $85
Fully taxable equivalent (FTE) adjustment 8,640 9,060 34,206 35,547
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CONSOLIDATED BALANCE SHEET Page 8
BOATMEN'S BANCSHARES, INC.
(in thousands) December 31 September 30
- -------------- ------------------------- ------------
Assets 1994 1993 1994
- ------ ---------- ---------- ----------
Cash and due from banks $1,885,484 $1,608,051 $1,767,030
Short-term investments 43,704 24,748 45,604
Securities:
Held to maturity 4,203,507 3,324,847 4,200,436
Available for sale 3,887,217 5,176,966 4,107,319
Trading 31,674 48,081 25,600
Federal funds sold and securities purchased under
resale agreements 1,082,110 407,672 775,293
Loans (net of unearned income of $65,751
$67,338 and $48,917, respectively) 16,480,437 14,825,922 16,104,659
Less reserve for loan losses 342,030 341,099 347,060
------------ ------------ ------------
Loans, net 16,138,407 14,484,823 15,757,599
------------ ------------ ------------
Property and equipment 524,812 480,586 519,609
Other assets 1,130,303 1,098,275 1,093,507
------------ ------------ ------------
Total assets $28,927,218 $26,654,049 $28,291,997
============ ============ ============
Liabilities and Stockholders' Equity
- ------------------------------------
Liabilities:
Demand deposits $4,589,782 $4,769,947 $4,318,661
Retail savings deposits and interest-bearing
transaction accounts 8,818,248 8,773,058 8,661,614
Time deposits 8,781,532 7,365,997 7,504,041
------------ ------------ ------------
Total deposits 22,189,562 20,909,002 20,484,316
------------ ------------ ------------
Federal funds purchased and securities sold
under repurchase agreements 1,888,970 1,996,022 2,386,177
Short-term borrowings 1,761,701 815,971 2,336,021
Capital lease obligation 38,359 39,224 38,575
Long-term debt 515,083 486,253 515,428
Other liabilities 331,570 273,168 323,503
------------ ------------ ------------
Total liabilities 26,725,245 24,519,640 26,084,020
------------ ------------ ------------
Redeemable preferred stock 1,142 1,155 1,142
------------ ------------ ------------
Stockholders' Equity:
Common stock ($1 par value; 150,000,000
shares authorized; 104,830,742, 104,125,546 and
104,789,055 shares issued, respectively) 104,831 104,126 104,789
Surplus 796,158 786,840 795,776
Retained earnings 1,419,367 1,200,036 1,362,914
Treasury stock (508,698 shares at cost (14,516)
Unrealized net appreciation (depreciation),
available for sale securities (105,009) 42,252 (56,644)
------------ ------------ ------------
Total stockholders' equity 2,200,831 2,133,254 2,206,835
------------ ------------ ------------
Total liabilities and stockholders' equity $28,927,218 $26,654,049 $28,291,997
============ ============ ============
Book value per share $21.10 $20.49 $21.06
============ ============ ============
Tangible book value per share $18.69 $17.84 $18.58
============ ============ ============
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CREDIT QUALITY STATISTICS Page 9
BOATMEN'S BANCSHARES, INC.
Quarter ended December 31 Year ended December 31
-------------------------- --------------------------
RESERVE FOR LOAN LOSSES
- -----------------------
(in thousands) 1994 1993 1994 1993
- -------------- -------- -------- -------- --------
Balance, beginning of period $347,060 $341,779 $341,099 $302,021
Charge-offs (17,804) (24,521) (65,941) (74,202)
Recoveries 8,374 11,988 41,693 40,239
-------- -------- -------- --------
Net charge-offs (9,430) (12,533) (24,248) (33,963)
-------- -------- -------- --------
Provision for loan losses 4,400 11,853 24,306 60,184
Reserves of acquired subsidiaries 873 12,857
-------- -------- -------- --------
Balance, end of period $342,030 $341,099 $342,030 $341,099
======== ======== ======== ========
Reserve at December 31:
Loan reserve as % of net loans 2.08 % 2.30 % 2.08 % 2.30 %
Loan reserve as multiple of net
charge-offs 9.07 x 6.80 x 14.11 x 10.04 x
Net charge-offs during the period:
Net charge-offs as % of net loans 0.23 % 0.34 % 0.15 % 0.23 %
Net charge-offs as % of net loans
(average) 0.23 0.34 0.15 0.24
Net charge-offs as % of loan reserve 11.03 14.70 7.09 9.96
<FN>
Note: Ratios are annualized when appropriate.
December 31 September 30
-------------------------- ------------
NONPERFORMING ASSETS
- --------------------
(in thousands) 1994 1993 1994
- -------------- -------- -------- --------
Nonaccrual $102,521 $142,853 $109,783
Restructured 7,090 14,807 7,143
Past due 90 days or more 15,559 17,238 37,962
-------- -------- --------
Total nonperforming loans 125,170 174,898 154,888
-------- -------- --------
Foreclosed property 60,393 110,639 102,308
-------- -------- --------
Total nonperforming assets $185,563 $285,537 $257,196
======== ======== ========
Nonperforming loans as % of total loans 0.76 % 1.17 % 0.96 %
Nonperforming assets as % of total loans
and foreclosed property 1.12 1.90 1.58
Nonperforming assets as % of total assets 0.64 1.07 0.91
Loan reserve as % of nonperforming loans 273.25 195.03 224.07
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RISK-BASED CAPITAL Page 10
BOATMEN'S BANCSHARES, INC.
December 31 September 30
------------------------------ ------------
(in millions) 1994 1993 1994
- ------------- ------------ ---------- ------------
Tier I Capital:
Stockholders' equity $2,200.8 $2,133.3 $2,206.8
Unrealized net (appreciation) depreciation,
available for sale securities 105.0 (42.3) 56.7
------------ ---------- ------------
Stockholders' equity, net 2,305.8 2,091.0 2,263.5
Minority interest 0.7 0.7 0.7
Intangible assets:
Goodwill (170.5) (181.6) (174.1)
Core deposit premium (73.9) (85.3) (78.9)
------------ ---------- ------------
Total Tier I 2,062.1 1,824.8 2,011.2
------------ ---------- ------------
Tier II Capital:
Allowable reserve for loan losses 245.4 215.3 239.8
Qualifying long-term debt 415.0 425.2 425.0
------------ ---------- ------------
Total Tier II 660.4 640.5 664.8
------------ ---------- ------------
Total Capital $2,722.5 $2,465.3 $2,676.0
============ ========== ============
Risk-Adjusted Assets $19,537.1 $17,098.0 $19,079.4
============ ========== ============
Risk-Based Capital Ratios
- -------------------------
Tier I 10.55% 10.67% 10.54%
Total 13.94% 14.42% 14.03%
Tier I leverage ratio 7.16% 6.93% 7.15%
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CONSOLIDATED AVERAGE BALANCE SHEET
AND NET INTEREST MARGIN Page 11
BOATMEN'S BANCSHARES, INC.
Quarter ended December 31 Year ended December 31
------------------------------------------- --------------------------------------
1994 1993 1994 1993
-------------------- --------------------- ------------------ -----------------
Average balances (in millions) Balance Rate Balance Rate Balance Rate Balance Rate
- ------------------------------ -------------------- --------------------- ------------------ -----------------
Assets:
Loans, net of unearned income $16,270.9 8.48 % $14,666.2 7.90 % $15,665.7 8.12 % $14,036.8 8.02%
Short-term investments 67.5 5.18 31.2 3.29 79.8 4.29 60.0 3.33
Federal funds sold and securities
purchased under resale agreements 504.1 5.39 297.9 3.20 291.1 4.68 429.9 3.11
Held to maturity securities:
Taxable 3,424.6 5.84 6,799.5 5.43 3,245.3 5.51 6,396.7 5.96
Tax-exempt 788.3 10.07 841.0 10.00 791.1 10.42 860.1 10.21
--------- ---------- --------- ----------
Total held to maturity securities 4,212.9 6.63 7,640.5 5.94 4,036.4 6.47 7,256.8 6.46
Available for sale securities 3,998.8 6.11 469.2 6.11 4,381.4 5.68 483.7 6.01
Trading securities 26.1 6.33 85.7 5.13 46.9 5.63 53.6 5.12
--------- ---------- --------- ----------
Total earning assets 25,080.3 7.72 23,190.7 7.14 24,501.3 7.35 22,320.8 7.36
------ ------- ----- ------
Less reserve for loan losses (348.1) (344.9) (347.7) (331.0)
Cash and due from banks 1,719.4 1,720.4 1,690.8 1,625.7
All other assets 1,624.4 1,554.5 1,601.3 1,433.0
--------- ---------- --------- ----------
Total assets $28,076.0 $26,120.7 $27,445.7 $25,048.5
========= ========== ========= ==========
Liabilities and stockholders' equity:
Retail savings deposits and
interest-bearing transaction accounts $8,703.4 2.78 % $8,601.0 2.38 % $8,728.9 2.50 % $8,279.1 2.47%
Time deposits 7,595.1 4.62 7,538.8 4.09 7,411.1 4.26 7,710.2 4.21
--------- ---------- --------- ----------
Total interest-bearing deposits 16,298.5 3.63 16,139.8 3.18 16,140.0 3.31 15,989.3 3.31
Federal funds purchased and other
short-term borrowings 4,217.5 5.26 2,579.6 2.97 3,817.3 4.31 2,094.7 2.98
Capital lease obligation 38.4 9.72 39.3 9.72 38.8 9.72 39.6 9.72
Long-term debt 520.8 8.35 487.8 7.96 516.0 8.03 456.4 8.09
--------- ---------- --------- ----------
Total interest-bearing liabilities 21,075.2 4.09 19,246.5 3.29 20,512.1 3.63 18,580.0 3.40
------ ------- ----- ------
Demand deposits 4,449.2 4,560.9 4,445.5 4,233.2
All other liabilities 343.0 242.5 308.9 249.2
--------- ---------- --------- ----------
Total liabilities 25,867.4 24,049.9 25,266.5 23,062.4
Redeemable preferred stock 1.1 1.2 1.1 1.2
Total stockholders' equity 2,207.5 2,069.6 2,178.1 1,984.9
--------- ---------- --------- ----------
Total liabilities and stockholders'
equity $28,076.0 $26,120.7 $27,445.7 $25,048.5
========= ========== ========= ==========
Interest rate spread 3.63 % 3.85 % 3.72 % 3.96%
Effect of noninterest-bearing funds 0.66 0.56 0.60 0.57
------ ------- ----- ------
Net interest margin 4.29 % 4.41 % 4.32 % 4.53%
====== ======= ===== ======
<FN>
Rates are computed on a fully taxable equivalent basis using the Federal
statutory income tax rate, net of non-deductible interest expense.