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VALLICORP REPORTS RECORD 2ND QUARTER, 6-MONTHS RESULTS; BOARD DECLARES REGULAR CASH DIVIDEND

 VALLICORP REPORTS RECORD 2ND QUARTER, 6-MONTHS RESULTS;
 BOARD DECLARES REGULAR CASH DIVIDEND
 FRESNO, Calif., July 21 /PRNewswire/ -- ValliCorp Holdings, Inc., (NASDAQ-NMS: VALY) the largest independent multi-bank holding company in California's San Joaquin Valley, today announced record earnings for the second quarter and the first half of 1992. In further action, the board of directors also declared its regular cash dividend of 6 cents per share.
 Results for the quarter just ended represent the tenth consecutive increase in quarterly net income and earnings per share for ValliCorp. Net income for the quarter was $1,198,000, or 27 cents per share, a 19 percent increase over the $1,010,000, or 23 cents per share, reported in the corresponding quarter of 1991.
 For the six months ended June 30, net income was $2,328,000 or 53 cents per share, up 23 percent over the $1,897,000, or 44 cents per share, reported for the same period in 1991. These gains come at a time when interest rates have declined, putting considerable pressure on interest margins.
 Putting the Quarter in Perspective
 J. Mike McGowan, president and chief executive officer of ValliCorp, stated, "ValliCorp continues to improve its earnings through asset growth, a stable net interest margin of approximately 6 percent, containment of overhead expenses and continued focus on the quality of its assets. However, the downward pressure on interest rates and the continued lack of consumer confidence in the economy are having an eroding effect on our margins. While the outlook for the balance of 1992 is encouraging, we will probably continue to experience slightly lower net interest margins."
 During the first half of 1992, the company reported an annualized return on average assets (ROAA) of 1.09 percent, and a return on average equity (ROAE) of 12.96 percent. These ratios are up substantially from the .96 percent ROAA and 11.77 percent ROAE reported in the corresponding 1991 period. Total assets grew by 9 percent; deposits grew 11 percent. In contrast, overhead expenses increased by only 1 percent in the period to period comparison.
 Management's continuing efforts to improve asset quality showed positive results in the reporting period. Nonperforming assets as a percent of total assets also improved in the year to year and six months comparisons: at June 30, 1992 this ratio stood at 1.34 percent compared with 1.70 percent at June 30, 1991 and 1.32 percent at Dec. 31, 1991.
 Dividend Declaration
 Separately, ValliCorp's board of directors approved a regular quarterly cash dividend of 6 cents per share, payable August 15, 1992 to stockholders of record on August 1, 1992. The 6 cent dividend represents a 20 percent increase over the company's cash dividend declared and paid in August, 1991.
 Merger Update
 As previously announced, ValliCorp plans to merge with Pacific Bancorporation, the $195 million holding company parent for Community First Bank of Bakersfield, Calif. Subject to certain conditions, including stockholder and regulatory approval, and completion of minimum financing requirements, ValliCorp hopes to complete the merger transaction by the second quarter of 1993.
 Wolf Muelleck, chief financial officer of ValliCorp, stated, "Despite Pacific's recently announced loss for the six months ended June 30, 1992, we continue to believe the merger is consistent with our strategic objectives.
 "The writedowns of approximately $930,000 to Pacific's OREO properties during the first half of 1992 were not unexpected and were taken into consideration in the escrow assets negotiated as part of the merger agreement. The agreement specifies that 189,306 shares of ValliCorp Holdings Common Stock -- to be issued to Pacific common shareholders -- are to be held in escrow pending the ultimate disposition of the escrow assets (i.e., the sale of certain OREO properties) by June 30, 1993," Muelleck explained.
 ValliCorp Holdings, Inc., has assets of $448 million and is the largest independent multi-bank holding company in the San Joaquin Valley, California's heartland. The company's primary subsidiaries are Bank of Fresno and Merced Bank of Commerce, N.A.
 VALLICORP HOLDINGS, INC.
 Unaudited Consolidated Statement of Income
 (in thousands, except per share data)
 Three Months Ended
 June 30
 STATEMENT OF INCOME DATA: 1992 1991
 Net interest income $5,650 $5,241
 Provision for possible
 credit losses 376 183
 Other income 960 1,019
 Other expenses 4,228 4,334
 Income taxes 808 733
 Net income 1,198 1,010
 Six Months Ended
 June 30
 1992 1991
 Net interest income $11,293 $10,448
 Provision for possible
 credit losses 661 275
 Other income 2,071 1,744
 Other expense 8,779 8,671
 Income taxes 1,596 1,349
 Net income 2,328 1,897
 BALANCE SHEET DATA: Six Months Ended
 June 30
 1992 1991
 Total assets $447,975 $410,596
 Total loans 317,445 306,071
 Total deposits 406,033 365,269
 Stockholders' equity 36,930 33,066
 SHARE DATA: Three Months Ended Six Months Ended
 June 30 June 30
 1992 1991 1992 1991
 Earnings per share
 Primary .27 .23 .53 .44
 Fully diluted .27 .23 .52 .43
 Book value per
 common share 8.69 7.88
 SELECTED FINANCIAL RATIOS:
 Six Months Ended
 June 30
 1992 1991
 Return on average total assets 1.09 pct. .96 pct.
 Return on average equity 12.96 pct. 11.77 pct.
 Net Interest margin 5.97 pct. 6.06 pct.
 Noninterest expenses to
 average assets 4.11 pct. 4.39 pct.
 Allowance for possible credit
 losses to total loans 1.55 pct. 1.61 pct.
 Net charge-offs to average loans .19 pct. .06 pct.
 Nonperforming assets to total
 loans and OREO 1.87 pct. 2.28 pct.
 Nonperforming assets to total
 assets 1.34 pct. 1.70 pct.
 -0- 7/21/92
 /NOTE TO EDITORS: For additional information on ValliCorp Holdings, Inc. by fax, no cost, dial 1-800-PRO-INFO, code no. 161./
 /CONTACT: Wolfgang T.N. Muelleck, executive vice president-chief financial officer of Vallicorp., 209-221-4427; or Gary Strong or Nick Farina of Financial Relations Board-Chicago, 312-266-7800; or Lillian Armstrong of FRB-San Francisco, 415-986-1591;or Regina Ryan of FRB-New York, 212-661-8030/
 (VALY) CO: ValliCorp Holdings, Inc. ST: California IN: FIN SU: ERN


TQ -- NY083 -- 1426 07/21/92 14:16 EDT
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