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First Union, Wachovia shine
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October 14, 1998: 10:56 a.m. ET
First Union blows past estimates with record earnings; Wachovia meets its mark
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NEW YORK (CNNfn) - At least two financial institutions emerged Wednesday from the shadows of BankAmerica's disappointing earnings to post their own solid gains, a sign of progress that could give the battered banking sector a much needed boost.
First Union Corp. posted record quarterly profits and beat Wall Street estimates by 6 cents a share, while Wachovia Corp. reported a 13 percent jump in operating income.
PNC Corp. (PNC) also is expected to report earnings Wednesday, on the heels of BankAmerica's dramatic shortfall in third quarter results.
First Union posted net income of $995 million, or $1.01 per share, for the quarter ended Sept. 30, up 33 percent from earnings of $748 million, or 78 cents a share.
On an operating basis, not including merger costs and restructuring charges, First Union had a record profit of $1 billion, or $1.02 a share, a 35 percent increase over last year.
Analysts expected the bank to earn 96 cents a share, according to First Call.
In the first nine months of 1998, First Union's operating earnings increased 25 percent to $2.7 billion from $2.2 billion in the same period of 1997.
The company's operating earnings and restructuring charges were primarily related to its acquisition of CoreStates Financial Corp. in April.
As of Sept. 30, First Union had assets of $234.6 billion and stockholders' equity of $17.4 billion.
"Our third-quarter performance, with revenues up 21 percent and operating earnings up 35 percent, clearly demonstrated the value of creating a financial services company with diversified sources of revenue and earnings," said Edward E. Crutchfield, First Union's chairman and chief executive officer.
Shares of First Union (FTU) were up 5/16 to 50-1/7 in early trading on the New York Stock Exchange.
Wachovia Corp. posted net income Wednesday of $227 million, or $1.09 per diluted share, for its third quarter ended in September, compared with earnings of $210 million, or $1 a share, last year.
The bank earned $235 million, or $1.13 per diluted share, on an operating basis, in line with First Call estimates. In the same quarter last year, Wachovia's operating income was $198.9 million, or $1 per share.
For the first nine months of 1998, operating earnings were $3.26 per diluted share, up 11 percent from $2.94. Operating net income totaled $683.7 million, a gain of 16 percent from $589.2 million in 1997.
"Good sales efforts across our expanded customer base translated into strong revenue growth for Wachovia in the third quarter and first nine months of the year," said L. M. Baker Jr., chief executive officer. "Total revenues advanced $118.5 million, or 14.9 percent, for the three months and $361 million, or 15.5 percent, year to date, with fee-based income contributing 46 percent of the growth in both periods."
Shares of Wachovia (WB) were up 1/8 at 85-9/16 on the Big Board. 
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