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CRESTAR FINANCIAL CORPORATION REPORTS 38 PERCENT INCREASE IN SECOND QUARTER EARNINGS

 CRESTAR FINANCIAL CORPORATION REPORTS 38 PERCENT INCREASE
 IN SECOND QUARTER EARNINGS
 RICHMOND, Va., July 16 /PRNewswire/ -- Crestar Financial Corporation (NASDAQ-NMS: CRFC) today reported net income of $16.8 million for the second quarter of 1992, a 38 percent increase over the $12.2 million earned in the second quarter of 1991. Earnings per share of $.50 increased 39 percent from the $.36 earned in the prior year's second quarter. Return on assets was .57 percent, return on total equity was 8.25 percent and return on common equity was 8.41 percent.
 For the first six months of 1992, Crestar has earned $30.4 million or $.90 per share, up 26 percent and 25 percent, respectively, from the $24.1 million or $.72 per share earned in the first six months of 1991.
 Richard G. Tilghman, Chairman and Chief Executive Officer of Crestar, attributed the increase to strong growth in net interest income and noninterest income net of securities transactions. "Earnings for the first and second quarters of this year reflect the substantial underlying earnings power of this organization, despite the lingering effect of the recession on our credit quality," he stated. "Although net charge-offs remain high, nonperforming assets have now declined for the third quarter in a row. We expect these positive trends to continue."
 Net interest income of $121.7 million increased 13 percent over the second quarter of 1991, driven by a 41 basis point improvement in the net interest margin to 4.72 percent and a 1 percent increase in average earning assets. Core deposit growth of 19 percent was a major contributor to the improvement in the net interest margin.
 "Second quarter results reflect the first full quarter of operations since the Perpetual acquisition," noted Tilghman, referring to the January acquisition by Crestar of the deposits and selected branches of the former Perpetual Savings Bank in the Washington, D.C. area. "That acquisition continues to exceed our expectations, both financially and operationally."
 Noninterest income for the second quarter was $51.7 million versus $75.6 million in the second quarter of last year. Results for the second quarter of 1991 included approximately $30.0 million in securities gain, versus a loss of $1.2 million in the current quarter. Excluding gains and losses from securities transactions from both periods, and excluding a $1.7 million gain on the sale of mortgage servicing rights that occurred in the current period, noninterest income was up 12 percent from the prior year period.
 Noninterest expense of $118.8 million was up 17 percent, reflecting increased operating expenses associated with the Perpetual acquisition and the increased expenses associated with a higher level of foreclosed properties. Core operating expenses continue to be tightly managed.
 The second quarter provision for loan losses was $34.4 million, versus a provision of $67.8 million in the second quarter of last year. Net charge-offs of $35.7 million represented 2.10 percent of average loans versus $30.2 million or 1.64 percent of loans in the prior year's second quarter. Nonperforming assets, which consist of $195.9 million in nonperforming loans and $119.8 million in other real estate owned, fell to $315.7 million or 4.60 percent of loans and foreclosed properties at June 30, 1992. This compares with total nonperforming assets of $393.9 million at June 30, 1991 and $319.0 million at March 31, 1992.
 The allowance for loan losses at June 30, 1992 was $218.1 million and represented 3.23 percent of loans, 69 percent of nonperforming assets and 111 percent of nonperforming loans.
 Crestar Financial Corporation is the holding company for three banks with 290 banking offices in Virginia, Maryland and the District of Columbia. Other subsidiaries provide insurance, discount brokerage, mortgage banking and investment advisory services. At June 30, 1992, Crestar had total assets of $11.5 billion and total deposits of $9.5 billion. Equity capital of $822 million represented 7.12 percent of assets.
 -0- 7/16/92
 /CONTACT: Janet S. McCabe, Investor Relations, 804-782-5619, or Anthony F. Mattera, Corporate Communications, 804-782-7844, both of Crestar Financial Corporation/
 (CRFC) CO: Crestar Financial Corporation ST: Virginia IN: FIN SU: ERN


CM -- CH005 -- 9692 07/16/92 11:49 EDT
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Publication:PR Newswire
Date:Jul 16, 1992
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