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CENTRAL FIDELITY RECORDS INCREASED EARNINGS

 CENTRAL FIDELITY RECORDS INCREASED EARNINGS
 RICHMOND, Va., Oct. 14 /PRNewswire/ -- Central Fidelity Banks,


Inc. (NASDAQ: CFBS) achieved record earnings for the third quarter and nine months ended Sept. 30, 1992.
 Net income for the third quarter was $20,696,000, an increase of 33.4 percent from the $15,518,000 recorded in the third quarter of 1991. Net income per share for the quarter was 87 cents compared to 72 cents in last year's third quarter representing an increase of 20.8 percent on a higher number of average shares outstanding.
 Net income for the first nine months of 1992 was a record $56,312,000, or $2.50 per share, vs. $45,411,000, or $2.11 per share, during the comparable period in 1991, representing gains of 24.0 percent in net income and 18.5 percent in earnings per share.
 Total assets as of Sept. 30, 1992, were $8,278,748,000, an increase of 26.4 percent over the prior year. Total loans grew a modest 4.5 percent to $3,801,625,000, while total deposits increased 26.1 percent to $6,328,641,000 at quarter-end. Shareholders' equity was $584,066,000, representing an increase of 39.7 percent from third quarter 1991 levels. The book value per common share increased 19.1 percent to $22.94 from $19.26 a year earlier. The significant growth in assets and deposits is primarily attributable to the acquisition from the Resolution Trust Corporation of the branch network and $871 million in core deposits of Investors Federal Savings Bank on July 13, 1992. The substantial increases in shareholders' equity and book value per share are a result of the sale of 3,450,000 shares of the company's common stock through a public offering in August. Net proceeds from the sale added approximately $113,000,000 to the company's equity account.
 Central Fidelity's return on average total assets for the third quarter was 1.06 percent compared to 1.01 percent for the same period last year. The company's return on average shareholders' equity was 15.39 percent in the third quarter of 1992 versus 15.05 percent for the comparable period in 1991.
 Net interest income for the quarter ended Sept. 30, 1992, was $74,924,000 representing an increase of 21.9 percent from the comparable quarter of 1991. Higher average earning assets, principally investment securities, were responsible for the gains in net interest income. On a tax equivalent basis, the net interest margin for the quarter was 4.23 percent compared with 4.46 percent for the third quarter of 1991. The reduction in margin was primarily a reflection of the higher average cost of deposits acquired with the purchase of Investors Federal Savings Bank. Repricing of the acquired deposits to appropriate levels occurred during the quarter which should provide for a recovery of this margin decline in future quarters.
 Non-interest income was $43,760,000 in the third quarter compared with $14,854,000 for the third quarter of 1991. Profits of $28,561,000 were realized on long-term mortgage-backed securities held as Securities Available For Sale thereby reducing the concentration of mortgage-related assets during the period when direct mortgage lending activities were accelerating. Excluding the effects of securities transactions during the quarter, non-interest income increased by 10.9 percent.
 Non-interest expense increased by $8,816,000, or 18.9 percent, to $55,515,000 during the quarter. Expenses related to foreclosed properties and a write-down of other investment properties accounted for $5.9 million of the increase. Excluding these charges, non-interest expenses were higher by 6.3 percent in the quarter, attributable primarily to personnel, occupancy and equipment expenses associated with the investors acquisition.
 Non-performing assets as of Sept. 30, 1992, were $118,480,000, or 1.43 percent of total assets, compared to $116,225,000, or 1.63 percent, at the end of second quarter and $79,115,000, or 1.21 percent, at the same date last year. This increase in non-performing loans reflects the continued weakness in real estate sales and values primarily in the Northern Virginia markets.
 The allowance for loan losses at quarter-end was $101,800,000, or 2.68 percent of loans, compared to $81,300,000, or 2.18 percent of loans, at June 30, 1992, and $62,335,000, or 1.71 percent, at Sept. 30, 1991. The adequacy of the loan loss reserve was further enhanced by the realization of securities profits during the quarter which provided the funding of the increased reserve allowance.
 Net loan charge-offs for the quarter were $13,321,000, representing 1.41 percent of average loans on an annualized basis, compared to $8,862,000, or 0.98 percent of average loans for the third quarter of 1991. For the nine months ended Sept. 30, 1992, net charge-offs were $41,768,000, or 1.51 percent of average loans, compared to $25,028,000, or 0.93 percent of average loans for 1991.
 Commenting on the company's performance, Carroll L. Saine, chairman of the board and chief executive officer, said, "We are very pleased to record a continuation of increased earnings as well as higher levels of capital and reserves in this environment of sluggish economic activity and weakness in real estate markets."
 Central Fidelity Banks, Inc., is a Richmond-based bank holding company with 230 branch offices throughout the state.
 -0- 10/14/92
 /CONTACT: William F. Shumadine Jr., president, 804-697-6744, or Peggy Cummings, public relations manager, 804-697-7261, both of Central Fidelity Banks/ CO: Central Fidelity Banks, Inc. ST: Virginia IN: FIN SU: ERN


IH -- DC009 -- 9928 10/14/92 13:48 EDT
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Date:Oct 14, 1992
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