Magazine article American Banker

First Penn Sees $25 Million Income for 1984 after Profitable 1st Quarter

Magazine article American Banker

First Penn Sees $25 Million Income for 1984 after Profitable 1st Quarter

Article excerpt

PHILADELPHIA -- George A. Butler, chairman and president of First Pennsylvania Corp., the parent of First Pennsylvania Bank, said Tuesday he expects net income of about $25 million to $27 million this year before preferred dividends of $17.1 million.

This prediction contrasts with a net loss of $15.7 million, or $1.10 per share, in 1983, and would be the first profitable year since 1979, when net income amounted to $16.5 million.

Mr. Butler told a press conference following the Philadelphia holding company's annual meeting that the first quarter's net income of $6.8 million is "representative" of projected figures for the full year.

First Pennsylvania, Mr. Butler said, will increase its capital base this year through retained earnings and the possible offering of additional securities, including convertible securities. In 1983, First Pennsylvania sold $162 million of convertible preferred securities.

Mr. Butler said the bank will probably sell between $30 million and $50 million of loans from its international portfolio, which now totals around $750 million. The loans will be sold "at not much of either a premium or a discount," he said, but sales of Latin American loans (which total $475 million) is unlikely because a discount would be necessary for their sale. Mergers Bode Well for 1st Penn

Recent mergers involving Philadelphia banks "have provided First Pennsylvania with substantial opportunities for new business," he said, "because of staff confusion and customer dissatisfaction at the merged institutions. …

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