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 RICHMOND, Va., Oct. 14 /PRNewswire/ -- Crestar Financial Corporation (NYSE: CF) today reported record net income of $37.2 million, or 96 cents per share, for the third quarter of 1993, a 73 percent increase over the $21.5 million, or 64 cents per share, reported in the third quarter of 1992. Return on average assets was 1.15 percent, return on average total equity was 13.84 percent, and return on average common equity was 14.20 percent.
 For the first nine months of 1993, net income totaled $101.8 million, or $2.67 per share, compared to $51.9 million, or $1.54 per share, in the same period last year. Return on average assets was 1.09 percent, return on average total equity was 13.29 percent, and return on common equity was 13.65 percent.
 "We are pleased to report record earnings at Crestar for a second consecutive quarter," said Richard G. Tilghman, chairman and chief executive officer of Crestar. "These results underscore the success of our business strategy and our aggressive marketing programs. Despite lackluster economic growth, we remain optimistic about the prospects for positive results for the remainder of 1993 and into 1994."
 Net interest income of $135.6 million in the third quarter was up 5 percent from the previous quarter and 10 percent from the third quarter of last year. The net interest margin of 4.77 percent improved from the 4.73 percent reported in the previous quarter. Loans at Sept. 30, 1993, were $7.1 billion compared to $7.2 billion at June 30, 1993, and $6.6 billion at Sept. 30, 1992.
 Non-interest income of $61.4 million for the third quarter represents a 10 percent increase over the $56.0 million reported in the third quarter of 1992. Reflecting lower foreclosed properties expenses, non-interest expense of $129.1 million improved 5 percent from the $136.4 million reported in the third quarter of last year.
 Net charge-offs continued a declining trend during the third quarter, dropping to $13.8 million, or 0.78 percent of average loans, from $15.0 million, or 0.89 percent of average loans, in the second quarter of 1993 and $23.7 million, or 1.43 percent of average loans, in the third quarter of 1992.
 The provision for loan losses declined from $16.0 million in the third quarter of 1992 to $13.8 million in the current quarter. Although the provision was up from the $3.0 million reported in the second quarter of 1993, total credit costs (the combination of the provision for loan losses and foreclosed properties expenses) declined to $18.4 million in the current quarter from $22.2 million in the previous quarter, reflecting continued improvement in credit quality.
 Non-performing assets were reduced by over 17 percent or $28.0 million during the quarter to $134.8 million, or 1.90 percent of loans and foreclosed properties at Sept. 30, 1993. This total includes $100.1 million in non-performing loans and $34.7 million in other real estate owned. This compares with $266.1 million in non-performing assets at Sept. 30, 1992. Non-performing assets now comprise 1.04 percent of total assets, compared to 2.26 percent at Sept. 30, 1992.
 The reserve for loan losses at Sept. 30, 1993, was $213.0 million and represented 3.02 percent of loans, 158 percent of non-performing assets and 213 percent of non-performing loans. An additional reserve for foreclosed properties totaled $11.1 million, or 24 percent of gross foreclosed properties at Sept. 30, 1993.
 As previously announced during the quarter, Crestar entered into a definitive agreement under which Crestar will acquire Virginia Federal Savings, a $756 million-asset institution based in Richmond. Also announced during the quarter, Crestar reached a definitive agreement to acquire the $421 million-asset Providence Savings and Loan Association of Vienna, Va.
 On Sept. 24, 1993, Crestar announced that it had filed a registration statement with the Securities and Exchange Commission permitting the corporation to issue up to $300 million in subordinated debt securities, preferred stock or common stock. The net proceeds from any such sale of securities will be used for general corporate purposes.
 Also, on July 28, 1993, Crestar began trading on the New York Stock Exchange under the symbol "CF." Crestar shares formerly traded on the NASDAQ stock market under the symbol "CRFC."
 Crestar Financial Corporation is the holding company for three banks with 302 banking offices in Virginia, Maryland and the District of Columbia. Other subsidiaries provide insurance, discount brokerage, mortgage banking and investment advisory services. At Sept. 30, 1993, Crestar had total assets of $13.0 billion and total deposits of $9.9 billion. Equity capital of $1.1 billion represented 8.43 percent of total assets.
 -0- 10/14/93
 /CONTACT: Eugene S. Putnam Jr., investor relations, 804-782-5619, or Barry R. Koling, corporate communications, 804-782-7845, both of Crestar/

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

MH-PB -- DC020 -- 2215 10/14/93 12:06 EDT
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Publication:PR Newswire
Date:Oct 14, 1993

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