Magazine article American Banker

Boatmen's Sees Sour Loans Leveling Off

Magazine article American Banker

Boatmen's Sees Sour Loans Leveling Off

Article excerpt

Boatmen's Sees Sour Loans Leveling Off

ST. LOUIS - Boatmen's Bancshares Inc. anticipates little change in its level of nonperforming assets for the remainder of the year, said chairman Andrew Craig 3d.

Mr. Craig said in an interview that the $17 billion-asset bank holding company also plans to maintain its current level of loan-loss provisions because of concern about the health of commercial real estate.

"We've been gradually adding to our reserves because we're uncomfortable with the overall real estate situation," he said. "We don't anticipate any major changes in the provision."

A Narrow Range

In the first quarter, St. Louis-based Boatmen's took a loan-loss provision of $20.5 million and earned $1 a share. In last year's first quarter, the bank took a $14.4 million provision and earned 94 cents a share.

"Our nonperformers are going to stay generally in the range they are for a while," Mr. Craig said. "They might pop up a little bit, and they might pop down a little bit. It just depends on what is happening in a given quarter."

As of March 31, nonperforming assets, including foreclosed property, were $293.9 million. The reserve for credit losses totaled $157.2 million.

On March 31, 1990, the company's nonperforming assets were $222.8 million and loss reserves $141.9 million.

Mr. Craig declined to comment on analysts' average second-quarter earnings estimate of $1.02 a share. That would be above the 95 cents turned in for the 1990 period. …

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