BANK PURCHASE SLOWS SECURITY PACIFIC <SPC> NET
Security Pacific Corp <SPC> said
growth in its third-quarter earnings was slowed by the purchase
of Rainier Bancorp and the suspension of interest payments on
Brazilian and Ecuadorian loans that were placed on a
non-accrual status earlier this year.
    The bank said it earned 128.1 mln dlrs in the third
quarter, up from 118.3 mln a year earlier. On a per-share
basis, income was 1.16 dlrs a share, up from 1.09 dlrs.
    The bank said non-recurring costs of 10.1 mln dlrs
associated with the acquisition of Rainier, a 9.5-billion-dlr
Seattle-based concern, cut earnings per share by nine cents.
    Security Pacific also said the suspension of interest
payments on the Brazilian and Ecuadorian debt reduced net
income by 8.1 mln dlrs, or seven cents a share.
    Security Pacific completed its acquisition of Rainier on
August 31. Security Pacific's results have been restated to
reflect the "pooling-of-interests" acquisition.
    "Our third-quarter performance was strong, clearly
demonstrating the stability and balance in our earnings
streams," said Richard Flamson, chairman and chief executive
officer. "The addition of Rainier," he continued, "adds very
significantly to the strength of our western banking network."
    The inclusion of Orbanco and Arizona Bancwest earnings
affected comparison of most financial categories.
    Fully-taxable equivalent net interest income was 602.4 mln
dlrs, up from 538.6 mln. The suspension of interest payments on
Brazilizan and Ecuadorian debt reduced net interest income by
41.9 mln dlrs.
    Non-interest income rose to 471.6 mln dlrs from 412.1 mln.
    Third-quarter provision for credit losses was 89.6 mln
dlrs, down 17.9 mln dlrs. As a percentage of average loans and
lease financing, net credit losses were 0.68 pct, down from
0.79 pct a year earlier.
    Non-performing loans and leases were 2.038 billion dlrs at
the end of the quarter, or 3.96 pct of loans and leases, up
from 1.377 billion a year ago.
    Other non-interest expense, composed of staff and other
expenses, was 757.6 mln dlrs, up from 616.2 mln. The rise
included an increase in staff expenses to 379.7 mln dlrs from
313.0 mln dlrs.
    Excluding Orbanco and Arizona Bancwest, average loans grew
11 pct. Real estate and international loan growth had the
greatest rises of 16 pct and 15 pct, respectively.
    Shareholders equity was 3.486 billion dlrs at the end of
the third quarter, up from 3.381 billion.
    The primary capital ratio was 7.41 pct, based on period-end
capital and quarterly average assets, up from 7.01 pct a year
earlier.
 Reuter
