Ncnb And C&S Take Their Medicine
How about a $1 billion big bath before the big linkup? That's what NCNB and C&S/ Sovran intend to do before joining forces as NationsBank by early 1992. The two Southern superregionals agreed on July 22 to a $4.3 billion stock swap, creating a bank with $118 billion in assets.
C&S/Sovran directors agreed to the merger after the magnitude of the bank's real estate lending debacle in Washington became clear. Nonperforming loans at C&S/Sovran already total $1.3 billion, and $600 million more in loan-loss provisions are likely to be tacked on before yearend. For its part, NCNB is expected to take a big write-down on its takeover loans. But by getting the bad news out of the way now, NationsBank's 1992 earnings should surge if the merger process is handled deftly.