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CRESTAR FINANCIAL CORPORATION REPORTS INCREASED FIRST QUARTER 1993 EARNINGS

 RICHMOND, Va., April 13 /PRNewswire/ -- Crestar Financial Corporation (NASDAQ-NMS: CRFC) today reported net income of $30.9 million or 83 cents per share for the first quarter of 1993, more than double the $13.7 million or 40 cents per share earned in the first quarter of 1992. Return on average assets was 1.02 percent, return on total equity was 12.75 percent, and return on common equity was 13.11 percent.
 "We are pleased to report continued earnings momentum and credit quality improvement as we progress through 1993," reported Richard G. Tilghman, chairman and chief executive officer of Crestar. "Despite a slower than normal economic expansion, Crestar has now posted its sixth consecutive quarter of increased earnings and improved credit quality. We expect these positive trends to continue."
 The net interest margin was 4.69 percent, up from 4.08 percent in the first quarter of 1992, and was driven by a 14 percent increase in tax-equivalent net interest income. The margin in the first quarter of 1992 was negatively affected by temporarily holding above-market rate deposits resulting from the acquisition of Perpetual Federal Savings Bank from the Resolution Trust Corporation.
 The margin was down from the 4.87 percent reported in the fourth quarter of 1992. Crestar has increased its money market investments which, while profitable, place pressure on the net interest margin.
 Strong growth in core business, such as deposit account income and trust and investment advisory income, resulted in non-interest income increasing to $60.4 million for the first quarter of 1993 vs. $56.0 million in the first quarter of last year. Results from the current quarter include securities gains of $1.1 million compared to gains of $4.7 million in the first quarter of 1992. Excluding securities gains in both periods, non-interest income increased 15 percent from the prior year period. Non-interest expense, which grew 6 percent, was $123.1 million in the current quarter vs. $116.0 million in the same quarter last year. The provision for loan losses declined from $30.1 million in the first quarter of 1992 to $18.5 million in the current quarter. Net charge- offs declined 33 percent, from $30.4 million or 1.76 percent of average loans in last year's first quarter to $20.5 million or 1.28 percent of average loans in the current quarter.
 Nonperforming assets fell by $26.8 million during the quarter to $194.0 million or 3.02 percent of loans and foreclosed properties at March 31, 1993. That total includes $118.9 million in nonperforming loans and $75.0 million in other real estate owned. This compares with $319.0 million in nonperforming assets at March 31, 1992 and represents the sixth consecutive quarter of a decline in nonperforming assets. Noperforming assets now comprise a 1.59 percent of total assets compared to 2.60 percent at March 31, 1992.
 The allowance for loan losses at March 31, 1993 was $203.0 million and represented 3.19 percent of loans, 105 percent of nonperforming assets and 171 percent of nonperforming loans.
 As previously announced during the fourth quarter of 1992, Crestar entered into a definitive agreement under which Crestar will acquire CFS Financial Corporation, a $926 million-asset holding company for Continental Federal Savings Bank, a federally chartered savings institution headquarterd in Fairfax, Va. The transaction was approved by CFS shareholders on April 8, 1993 and is still subject to final regulatory approval. The merger is expected to occur during the second quarter of 1993.
 Crestar Financial Corporation is the holding company for three banks with 288 banking offices in Virginia, Maryland and the District of Columbia. Other subsidiaries provide insurance, discount brokerage, mortgage banking and investment advisory services. At March 31, 1993, Crestar had total assets of $12.2 billion and total deposits of $9.2 billion. Equity capital of $987.5 million represented 8.11 percent of total assets.
 -0- 4/13/93
 /CONTACT: Eugene S. Putnam Jr., investor relations, 804-782-5619, or Barry R. Koling, corporate communications, 804-782-7845, both of Crestar Financial Corporation/
 (CRFC)


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

DC-KD -- DC006 -- 5170 04/13/93 11:08 EDT
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Publication:PR Newswire
Date:Apr 13, 1993
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