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CRESTAR FINANCIAL CORPORATION REPORTS LOAN GROWTH, IMPROVED NET INTEREST MARGIN AND RECORD EARNINGS

 RICHMOND, Va., July 15 /PRNewswire/ -- Crestar Financial Corporation (NASDAQ-NMS: CRFC) today reported net income of $33.7 million for the second quarter of 1993, more than double the $16.8 million earned in the second quarter of 1992. Earnings per share were $.88 in the current quarter versus $.50 per share in the prior year period. Return on average assets was 1.09 percent, return on total equity was 13.24 percent and return on common equity was 13.60 percent.
 For the first six months of 1993, net income totaled $64.6 million or $1.71 per share compared to $30.4 million or $.90 per share in the same period last year. Return on average assets was 1.05 percent, return on total equity was 13.00 percent and return on common equity was 13.36 percent.
 "Crestar's second quarter results underscore the strong momentum behind our continued earnings growth," reported Crestar's Chairman and Chief Executive Officer, Richard G. Tilghman. "While these increases clearly reflect continuing improvement in credit quality, they also are representative of strong growth in both net interest income and noninterest income, despite the slow-growth economic environment."
 Net interest income of $128.8 million was up over 3 percent from the previous quarter. The net interest margin of 4.73 percent improved from the first quarter margin of 4.69 percent. This margin increase was driven by a 6 percent increase in average loans outstanding during the quarter. Loans at June 30, 1993, were $7.2 billion, up 14 percent from March 31, 1993. Loan growth was primarily the result of loans acquired from the acquisition of CFS Financial Corporation (NASDAQ-NMS: CFSC).
 Noninterest income of $62.9 million for the second quarter represents a 22 percent increase over the $51.7 million reported in the second quarter of 1992. Excluding securities gains and losses in both periods, noninterest income increased a healthy 16 percent over the prior year period.
 Noninterest expense was $140.5 million versus $118.8 million in the second quarter of last year. This increase was principally the result of acquisition related expenses, increased marketing expenses and foreclosed properties expense which included a $7.5 million addition to the reserve for losses on foreclosed properties.
 Net charge-offs declined during the second quarter, dropping to $15.0 million or 0.89 percent of average loans from $20.5 million or 1.28 percent of average loans in the first quarter of 1993 and $35.7 million or 2.10 percent of average loans in the second quarter of 1992. The provision for loan losses was $3.0 million compared to $34.4 million in the second quarter of last year. While the provision expense was down from the first quarter's $18.5 million, the reduction was primarily offset by one-time charges to sell foreclosed properties and supplement a significant reserve intended to shield the corporation from future losses on the disposal of current foreclosed properties.
 Reflecting this improvement in credit quality, total credit costs (the combination of the provision for loan losses and foreclosed properties expenses) totaled $22.2 million for the quarter, down $4.4 million from the previous quarter and $23.2 million from the second quarter of 1992.
 Nonperforming assets were reduced by over 16 percent or $31.2 million during the quarter to $162.8 million or 2.24 percent of loans and foreclosed properties at June 30, 1993. That total includes $117.8 million in nonperforming loans and $45.0 million in other real estate owned. This compares with $315.7 million in nonperforming assets at June 30, 1992. Nonperforming assets now comprise 1.23 percent of total assets compared to 2.74 percent at June 30, 1992.
 The reserve for loan losses at June 30, 1993, was $213.0 million and represented 2.95 percent of loans, 131 percent of nonperforming assets and 181 percent of nonperforming loans. An additional reserve for foreclosed properties totaled $12.5 million or 22 percent of gross foreclosed properties at June 30, 1993.
 As previously announced, Crestar completed the acquisition of CFS Financial Corporation, an $843 million-asset holding company for Continental Federal Savings Bank, a federally chartered savings institution headquartered in Fairfax, Va. The merger was completed on May 14, 1993.
 Crestar Financial Corporation is the holding company for three banks with 308 banking offices in Virginia, Maryland and the District of Columbia. Other subsidiaries provide insurance, securities sales and service, mortgage banking and investment advisory services. At June 30, 1993, Crestar had total assets of $13.2 billion and total deposits of $10.0 billion. Equity capital of $1.1 billion represented 8.05 percent of total assets.
 -0- 7/15/93
 /CONTACT: Eugene S. Putnam Jr., Investor Relations, 804-782-5619, or Barry R. Koling, Corporate Communications, 804-782-7845, both of Crestar/
 (CRFC CFSC)


CO: Crestar Financial Corporation ST: Virginia IN: FIN SU: ERN

IH -- DC016 -- 1903 07/15/93 11:28 EDT
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Date:Jul 15, 1993
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