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CENTRAL FIDELITY ANNOUNCES INCREASED EARNINGS

 CENTRAL FIDELITY ANNOUNCES INCREASED EARNINGS
 RICHMOND, Va., July 8 /PRNewswire/ -- Central Fidelity Banks, Inc.


(NASDAQ-NMS: CFBS) achieved record earnings for the second quarter and six months ended June 30, 1992. Net income for the second quarter increased 22.7 percent to $18,642,000 compared with $15,198,000 for the comparable period in 1991. Net income per share for the quarter was $.85 versus $.71 in 1991, an increase of 19.7 percent.
 For the first six months of 1992, net income was $35,616,000 or $1.63 per share versus $29,893,000 or $1.39 in the first half of 1991. This represented increases of 19.1 percent in net income and 17.3 percent in earnings per share.
 Total assets as of June 30, 1992 were $7,112,539,000 representing growth of 13.0 percent from a year earlier. Total loans for the period rose a modest 1.6 percent to $3,726,385,000 while total deposits rose by 12.9 percent to $5,662,964,000. Shareholders' equity at quarter-end was $456,245,000 or 6.4 percent of total assets. The book value per common share was $20.79 compared with $18.80 on June 30, 1991.
 The Company's return on average total assets for the six month period was 1.05 percent versus 1.01 percent for the comparable 1991 period. The return on average shareholders' equity was 16.06 percent for 1992, up from 15.18 percent for the first half of 1991.
 Net interest income for the second quarter of 1992 increased 19.3 percent to $71,555,000. On a tax equivalent basis, the net interest margin was 4.56 percent versus 4.51 percent in the second quarter of 1991.
 Noninterest income for the second quarter of 1992, excluding gains from the sale of securities, increased 17.9 percent to $16,343,000. Included in this increase was a $1.4 million gain from the sale of the Company's bankcard merchant accounts. Gains from the sale of investment securities totaled $18,175,000 during the quarter resulting from reductions in concentrations of mortgage-backed securities.
 Noninterest expense increased 3.1 percent during the quarter to $46,788,000. This increase was attributable primarily to a $1.5 million charge associated with an early retirement program and a $726,000 rise in FDIC insurance cost. For the first six months of 1992, noninterest expense grew 2.8 percent.
 Nonperforming assets as of June 30, 1992 were $116,225,000 or 1.63 percent of total assets compared to $95,217,000 or 1.38 percent at the end of the first quarter and $84,473,000 or 1.34 percent at the same date last year. The increase in nonperforming loans reflects the continued weakness in real estate sales and values in the Northern Virginia markets.
 The allowance for loan losses at quarter-end was $81,300,000 or 2.18 percent of loans compared to $69,500,000 or 1.92 percent of loans at March 31, 1992 and $62,340,000 or 1.70 percent of loans at the end of the second quarter in 1991. As sluggish economic conditions may persist during the balance of the year, further credit deterioration could occur resulting in higher levels of nonperforming loans requiring additions to the allowance for loan losses.
 Net loan charge-offs for the quarter were $21,764,000 representing 2.37 percent of average loans on an annualized basis compared to $8,690,000 or .96 percent for the second quarter of 1991. For the six months ended June 30, 1992, net charge-offs were $28,447,000 or 1.56 percent of average loans compared to $16,166,000 or .90 percent of average loans for 1991.
 Commenting on the Company's performance, Carroll L. Saine, Chairman of the Board and Chief Executive Officer, said, "The economic recovery remains sluggish and difficult on the banking industry. In this environment, we are pleased with the record earnings and increased levels of reserves."
 Central Fidelity Banks, Inc. is a Richmond based bank holding company with 205 branch offices throughout the state.
 -0- 7/8/92
 /CONTACT: William F. Shumadine, Jr., President, 804-697-6744, or Peggy Cummings, Public Relations Manager, 804-697-7261, both of Central Fidelity Banks/
 (CFBS) CO: Central Fidelity Banks, Inc. ST: Virginia IN: FIN SU: ERN


CM-JM -- CH002 -- 7470 07/08/92 13:54 EDT
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Date:Jul 8, 1992
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