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CRESTAR FINANCIAL CORPORATION REPORTS RECORD EARNINGS

 RICHMOND, Va., Jan. 13 /PRNewswire/ -- Crestar Financial Corporation (NYSE: CF) today reported net income of $140.5 million, or $3.68 per share, for 1993, compared to the $79.8 million, or $2.32 per share, earned in 1992. For the full year 1993, return on assets was 1.12 percent, return on total equity was 13.53 percent, and return on common equity was 13.90 percent.
 Net income for the fourth quarter of 1993 totaled $38.7 million, or $1.01 per share, compared to $27.9 million, or 78 cents per share, in the fourth quarter of 1992. For the fourth quarter of 1993, return on assets was 1.20 percent, return on total equity was 14.19 percent, and return on common equity was 14.60 percent.
 "We are pleased to report 1993 was a record year for earnings at Crestar," said Richard G. Tilghman, chairman and chief executive officer of Crestar. "The successful implementations of our business strategies enabled the achievement of these record results despite lackluster economic growth in our markets throughout most of 1993. We remain optimistic about the prospects for an even better 1994."
 Net interest income of $138.0 million in the fourth quarter was up 2 percent from the previous quarter and 6 percent from the fourth quarter of 1992. For the full year, net interest income of $527.0 million was up 9 percent from 1992, primarily driven by lower funding costs. The net interest margin in the fourth quarter of 4.77 percent was virtually unchanged from the reported margin for the third quarter. The full year 1993 net interest margin was 4.78 percent, up from the 4.67 percent reported from the full year 1992. Loans at Dec. 31, 1993, were $7.3 billion, compared to $7.1 billion at Sept. 30, 1993, and $6.6 billion at Dec. 31, 1992.
 Noninterest income of $248.3 million in 1993 increased 14 percent from 1992. Noninterest expense of $523.0 million was up 4 percent from the $501.8 million reported in 1992.
 Net charge-offs were $15.5 million or 0.87 percent of average loans in the fourth quarter of 1993 and $64.8 million or 0.95 percent of average loans for the full year. Comparable numbers for 1992 were $24.1 million or 1.48 percent of average loans in the fourth quarter and $113.9 million or 1.69 percent of average loans for the full year.
 The provision for loan losses was $13.5 million for the fourth quarter of 1993 and $48.8 million for the full year, down from $18.7 million in the fourth quarter of last year and $99.2 million for the full year of 1992.
 For the first time since 1989, nonperforming assets were less than $100 million. They were reduced by 28 percent or $38.0 million during the quarter to $96.8 million or 1.32 percent of loans and foreclosed properties at Dec. 31, 1993. For the full year nonperforming assets were reduced by 56 percent or $124.0 million. Nonperforming assets at Dec. 31, 1993, included $79.8 million in nonperforming loans and $17.0 million in other real estate owned. Nonperforming assets at Dec. 31, 1993, comprised 0.73 percent of total assets, down from 1.04 percent at Sept. 30, 1993, and 1.74 percent at Dec. 31, 1992.
 The allowance for loan losses at Dec. 31, 1993, was $211.0 million and represented 2.89 percent of loans, 218 percent of nonperforming assets and 264 percent of nonperforming loans.
 As previously announced during the fourth quarter, Crestar entered into definitive agreements to purchase NVR Federal Savings Bank, a $528 million-asset thrift institution headquartered in McLean, Va., and Annapolis Bancorp, Inc., a $332 million-asset thrift institution based in Annapolis, Md. Crestar also announced the signing of a definitive agreement to acquire Mortgage Capital Corporation, a privately held wholesale mortgage production company based in St. Paul, Minn. Completion of these acquisitions is expected during the first half of 1994.
 Crestar Financial Corporation is the holding company for three banks and 302 banking offices in Virginia, Maryland and the District of Columbia. Other subsidiaries provide insurance, mortgage banking and full-service securities and investment advisory services. At Dec. 31, 1993, Crestar had total assets of $13.3 billion and total deposits of $10.2 billion. Equity capital of $1.1 billion represented 8.00 percent of total assets.
 -0- 1/13/94
 /CONTACT: Eugene S. Putnam Jr., investor relations, 804-782-5619, or Barry R. Koling, corporate communications, 804-782-7845, both of Crestar Financial/
 (CF)


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

DC-DT -- DC017 -- 1122 01/13/94 13:25 EST
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Publication:PR Newswire
Date:Jan 13, 1994
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