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FIRST SECURITY NOTES $86.61 MILLION INCOME

SHARE FIRST SECURITY NOTES $86.61 MILLION INCOME

First Security Corp. Tuesday reported record net income of $86.61 million for 1992, up 45.4 percent over the $59.55 million earned in 1991.

Net income per share totaled $2.21 for 1992, up 31.5 percent from $1.68 in 1991. Per-share data were restated to reflect three-for-two stock splits made in the form of 50 percent stock dividends paid in May 1992 and June 1991."The past year was the most profitable in First Security's 64-year history and the sixth straight year in which its earnings have increased," said Spencer F. Eccles, chairman and chief executive officer of the regional banking services company based in Salt Lake City.

He said net income for the year generated a return on average assets (ROA) of 1.20 percent and a return on average equity (ROE) of 14.12 percent, up significantly from 1991's ROA of .88 percent and ROE of 11.59 percent.

Net income for the fourth quarter of 1992 was $23.24 million, up 49.1 percent over the fourth quarter of 1991. Net income per share was 59 cents, up 40.5 percent over the year-ago quarter, while the ROA was 1.26 percent and ROE was 14.50 percent, up from .90 percent and 11 percent one year ago, respectively.

"For both the year and the fourth quarter, growth in net income was primarily due to a lower cost of funds, combined with factors such as growth in earning assets plus a reduced provision for loan losses," said Eccles.

Net interest income on a fully taxable equivalent (FTE) basis totaled $337.52 million for 1992 and was $86.13 million for the fourth quarter, up 19.7 percent and 16.9 percent from the 1991 periods.

The provision for loan losses totaled $29.85 million for 1992, down 34 percent from 1991, and included net loan charge-offs of $23.21 million, down 40.7 percent. The fourth quarter provision for loan losses totaled $4.87 million, down 66.3 percent from the 1991 period, and included net loan chargeoffs of $5.18 million, down 71 percent.

Total nonperforming assets declined to $64.41 million on Dec. 31, down 31.2 percent from year-end 1991. Eccles said First Security has reduced its nonperforming assets to the lowest dollar level since 1978 with reductions being made in the second, third and fourth quarters of 1992. He said the decrease in each of those quarters nearly equaled the total decrease for all of 1991.

Nonperforming assets equaled 1.29 percent of total loans and ORE on Dec. 31, the lowest ratio since 1978 and a 1.96 percent decrease from year-end 1991.

Eccles said stockholders' equity totaled $642.72 million on Dec. 31, up 12.9 percent from a year earlier. The corporations's market capitalization (market price times shares outstanding) exceeded $1.04 billion at the end of '92, up from $348.01 million at the end of 1990 and $695.23 million at the end of 1991, a growth rate Eccles termed "phenomenal."

Since equity grew faster than assets in 1992, the ratio of stockholders' equity to total assets rose to 8.45 percent, up from 8.11 percent at year-end 1991, while the ratio of tangible common equity to total assets reached 8.27 percent, up from 7.93 percent a year earlier.

Year-end assets totaled $7.61 billion, up 8.5 percent from 1991. Deposits totaled $5.69 billion, up 6.6 percent from 1991.

The bid price of First Security common stock was $27.25 per share at the close of the market on Dec. 31, up 43.4 percent from $19 per share on Dec. 31, 1991.