First Interstate Bank of Utah Tuesday reported net income of $12.09 million, up slightly from 1991's earnings.
"In 1991, we set a record for annual earnings, and we are pleased to maintain that high level for 1992," said Robert C. Gross, president. "In addition, our equity capital and loan loss reserves are exceptionally strong, and we continue to see a significant reduction in our nonperforming loans."Last year's earnings represented a 1.39 percent return on assets and an 18.29 percent return on equity, said Gross.
Nonperforming assets were reduced $4 million or 69 percent in 1992 to $1.8 million on Dec. 31, less than a quarter of 1 percent of total assets on that date.
Total assets on Dec. 31 were $870 million, down from $874 million on Sept. 30. Total deposits were $788 million on Dec. 31, down from $791 million at the end of the third quarter.
Meanwhile, Los Angeles-based First Interstate Bancorp, parent company of First Interstate Bank of Utah, reported net income for 1992 of $282.3 million, or $3.23 per share, compared with a net loss in 1991 of $288.1 million, or $5.24 per share.
For the fourth quarter of 1992, the corporation reported net income of $82.1 million, or 91 cents per share, compared with a net loss of $59.9 million, or $1.14 per share.
Chairman Edward M. Carson said the 1992 results "reflect the continuing success of our program to improve our credit profile, reduce expenses and strengthen our capital position."
Carson said the corporation's reduction of nonperforming assets "far exceeded" earlier expectations and was achieved despite the continued weakness of the California economy, which accounts for about 30 percent of First Interstate's assets.
He said First Interstate expects to report increased earnings in 1993 and will focus on revenue growth during the year. He added that First Interstate may seek acquisitions to build market share in selected areas of its territory.