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In Business This Week
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.EDITED BY HARRIS COLLINGWOOD