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FIRST VIRGINIA REPORTS EIGHTH CONSECUTIVE QUARTER OF RECORD EARNINGS - UP 22 PERCENT

 FALLS CHURCH, Va., July 12 /PRNewswire/ -- First Virginia Banks, Inc. (NYSE: FVB) has reported record earnings for the eighth consecutive quarter with net income reaching $29,156,000 in the second quarter ended June 30, 1993. This 22 percent increase in earnings over the second quarter of 1992 equals $.90 per share of common stock, as compared to the $23,804,000 and $.74 per share reported in the previous year's second quarter and the $29,115,000 and $.90 per share earned in the first quarter of 1993. Net income for the second quarter represents a 1.71 percent return on average assets and an 18.26 percent return on average stockholders' equity, which are among the highest rates of return of all banks in the country. All figures are adjusted for the three-for-two stock split paid in July of 1992.
 For the first six months of 1993, net income of $58,271,000 or $1.80 per share was up 29 percent over the $45,325,000 and $1.41 per share earned in the first half of 1992. This represents a return on average equity of 18.55 percent and a 1.72 percent return on average assets, as compared to the 16.33 percent and 1.42 percent, respectively, reported for the first half of 1992.
 Robert H. Zalokar, chairman and chief executive officer, said that the key factors responsible for the corporation's continued strong performance were a solid net interest margin, steady but modest loan growth, a decline in net loan charge-offs, and an efficiency ratio of 56 percent. Mr. Zalokar said, "As the economy shows signs of improvement, First Virginia has intensified its efforts to provide car loan financing for consumers and commercial services for automobile dealerships. The resulting increase in market share has strengthened First Virginia's already dominant position in this area." Mr. Zalokar noted that average loans in the second quarter were up 8 percent, as compared to the second quarter of 1992, and that installment loans - which include automobile loans - were up 12 percent.
 Total assets at June 30, 1993, were $6.875 billion, up 4 percent from the $6.612 billion reported in the previous year. Deposits totaled $6.018 billion, up 4 percent from the $5.800 billion reported in the same period of 1992, and essentially unchanged from the $6.014 billion and $6.007 billion reported at the end of 1992 and March 31, 1993, respectively. Despite the Federal Reserve's continued downward pressure on interest rates, First Virginia has managed to maintain its deposit balances. For those consumers who are seeking higher rates of return than provided by traditional banking products, the corporation has begun offering an asset allocation account which allows individuals the opportunity to place some of their money in a family of mutual funds. In addition, the corporation continues to offer annuities and other insurance investment products through its wholly owned insurance agency.
 On June 30, 1993, nonperforming assets were $28,686,000 and represented only .72 percent of outstanding loans. This was a decline from the $31,699,000 or .86 percent of loans in the comparable period of 1992 and down from the $31,324,000 or .81 percent of loans at March 31, 1993. Loans past due 90 days or more and still accruing interest were $3,586,000 or .09 percent of outstanding loans as compared to the $9,664,000 and .26 percent reported in June of 1992. Annualized net charge-offs for the second quarter continued to improve and were .15 percent of average loans, as compared to the .41 percent incurred in the second quarter of 1992. Net loan charge-offs declined 58 percent for the first six months of 1993, as compared to the same period in 1992. These ratios are among the best of all banks and reflect the corporation's strong loan quality.
 Stockholders' equity increased 14 percent as compared to one year ago, and the corporation's Tier 1 Leverage Ratio was 9.31 percent at June 30, 1993 - three times the required regulatory minimum. In May, the Board of Directors declared a 28 cents per share quarterly dividend which was an increase of 2 cents over the previous quarterly rate and represented the 17th consecutive year in which the corporation's dividend has been increased.
 Currently, there are 20 member banks in the First Virginia Banks, Inc. group and they operate 319 offices. Sixteen of the banks with 266 offices are in Virginia; two banks with 36 offices are in Maryland; and two banks with 17 offices are in Tennessee.
 FIRST VIRGINIA BANKS, INC.
 FINANCIAL DATA
 (Dollars in thousands, except per share data)
 Three Months ended Six Months Ended
 June 30, June 30,
 1993 1992 1993 1992
 Interest income $126,521 $133,566 $252,779 $263,314
 Interest expense 41,445 53,819 82,729 110,108
 Net interest income 85,076 79,747 170,050 153,206
 Provision for loan losses 2,027 5,704 4,191 9,658
 Other income 19,964 19,328 39,401 37,690
 Other expenses 60,510 58,972 120,285 116,145
 Provision for income taxes 13,347 10,595 26,704 19,768
 Net income 29,156 23,804 58,271 45,325
 Net income per common share 0.90 0.74 1.80 1.41
 Earnings per share of common stock for the six months ended June 30, after giving effect to dividends on preferred stock of $27,000 in 1993 and $34,000 in 1992, are based on 32,311,000 and 32,215,000 average shares outstanding, respectively. Prior periods have been restated to reflect the 3 for 2 common stock split paid on July 27, 1992.
 Three Months Ended Six Months Ended
 June 30, June 30,
 1993 1992 1993 1992
 Average earning
 assets $6,306,878 $6,072,035 $6,252,266 $5,891,188
 Yield on
 earning assets
 (in percentages) 8.16 8.96 8.24 9.10
 Avg. time dpsts
 & brwd funds 5,151,065 5,042,496 5,127,629 4,910,364
 Average interest
 cost (in
 percentages) 3.23 4.29 3.25 4.51
 Net yield on
 earning assets
 (in percentages) 5.53 5.40 5.58 5.35
 Average assets 6,827,198 6,544,311 6,768,000 6,365,602
 Return on
 average assets
 (in percentages) 1.71 1.46 1.72 1.42
 Average
 stockholders'
 equity 638,520 562,983 628,120 555,158
 Return on
 average equity
 (in percentages) 18.26 16.91 18.55 16.33
 As of June 30: 1993 1992
 Total assets $6,875,478 $6,611,554
 Demand deposits 1,011,898 899,450
 Savings and time deposits 5,006,191 4,900,203
 Total deposits 6,018,089 5,799,653
 Loans (net) 3,910,466 3,644,825
 Stockholders' equity 648,804 570,905
 Book value per share 20.12 17.73
 -0- 7/12/93
 /CONTACT: Richard F. Bowman, vice president and treasurer of First Virginia Banks, 703-241-3685/
 (FVB)


CO: First Virginia Banks, Inc. ST: Virginia IN: FIN SU: ERN

MP-MG -- NY040 -- 0429 07/12/93 12:38 EDT
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