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DOMINION BANKSHARES ANNOUNCES 1991 FINANCIAL RESULTS; DECLARES DIVIDEND

 DOMINION BANKSHARES ANNOUNCES 1991 FINANCIAL RESULTS;
 DECLARES DIVIDEND
 ROANOKE, Va., Jan. 21 /PRNewswire/ -- Dominion Bankshares Corporation (NASDAQ-NMS: DMBK) today reported net income for the year ended Dec. 31, 1991, amounted to $20.6 million, compared to a loss of $37.1 million for 1990. Dominion's per share earnings in 1991 were $.50. Fourth quarter, 1991, net income totaled $4.7 million, compared to a loss of $28.8 million in the same quarter of 1990. A reserve of $2.2 million for restructuring expenses expected to occur in 1992 was also established. On a per share basis, fourth quarter, 1991, earnings were $.11.
 For the fourth quarter of 1991, net interest income totaled $80.2 million (on a fully taxable equivalent basis) producing a net interest margin for the quarter of 3.64 percent. Noninterest income in the fourth quarter totaled $47.5 million compared to $53.1 million in the third quarter. Fourth quarter earnings included securities gains of $13.3 million, primarily from sales of mortgage-backed securities which were taken to reduce the prepayment risks associated with lower interest rates, and nonrecurring tax benefits of $2.5 million.
 Noninterest expense for 1991 totaled $347 million. Excluding restructuring costs, real estate losses and related expenses and the large increase in FDIC assessments, noninterest expense in 1991 declined 1 percent from 1990 reflecting management's intensified emphasis on cost control. A $3.5 million decrease in salaries and employee benefits and a $2.5 million reduction in marketing expense were primary reasons for the decline.
 At the end of 1991, nonaccruing loans plus foreclosed properties were $364 million, down $27 million or 7 percent from Sept. 30, 1991, and $35 million above the year-end 1990 total. The allowance for credit losses totaled $200 million on Dec. 31, 1991, which equaled 78 percent of nonaccruing loans. Net charge-offs for the fourth quarter were $66 million and for the full year of 1991 totaled $176 million, or 2.73 percent of average loans, net of unearned income.
 Reflecting continuing sluggish economic conditions, the Corporation's consolidated assets totaled $9.7 billion on Dec. 31, 1991, down 6.4 percent from the $10.4 billion one year earlier. Loans, net of unearned income, were $6.1 billion at the close of 1991, an 11.2 percent decline from year-end 1990. Total deposits amounted to $7.9 billion on Dec. 31, 1991, reflecting a 2.0 percent decrease from the $8.0 billion on the same date in 1990. Stockholders' equity at year-end 1991 totaled $566 million, compared to $556 million one year earlier. Book value per share was $14.34 at Dec. 31, 1991.
 In commenting on the Corporation's results, Warner N. Dalhouse, Dominion's Chairman and Chief Executive Officer, said: "We are aggressively attacking our real estate credit problems and in the last two quarters have disposed of a substantial number of nonperforming assets. But while progress is being achieved, the combination of a sluggish economy, depressed real estate markets (especially in the Washington, D.C. region) and low consumer confidence, all continue to put pressure on loan portfolios. The process is difficult, slow and costly. Despite this environment, we have experienced good core deposit growth and steady improvement in our capital ratios. While most credit quality


indicators improved in the fourth quarter, we remain cautious about near-term trends."
 Dalhouse emphasized that "considering the weak business conditions expected, the period ahead will be difficult. Our priorities will continue to be improving profitability, cost control (demonstrated by the broad expense reduction initiatives announced earlier this month), credit quality and capital."
 At its meeting on Jan. 21, 1992, the Board of Directors declared a quarterly cash dividend of 11 cents per share of common stock. The dividend is payable March 10, 1992, to shareholders of record at the close of business Feb. 10, 1992.
 Dominion Bankshares is a multi-state bank holding company with offices located throughout Virginia and in Tennessee, Maryland and Washington, D.C.
 DOMINION BANKSHARES CORPORATION
 FINANCIAL HIGHLIGHTS
 (In Thousands of Dollars, Except Per Share Data)
 December 31, 1991
 4th Qtr. 3rd Qtr. 4th Qtr. Twelve Months Ended
 1991 1991 1990 1991 1990
 Earnings
 Net interest
 margin (Pct.) 3.64 3.78 3.86 3.77 4.09
 Net interest
 income (FTE) $80,175 $87,298 $91,801 $344,832 $385,597
 Net interest
 income 77,234 84,014 87,566 331,297 368,036
 Provision for
 credit losses 32,000 50,004 84,820 142,624 234,497
 Noninterest
 income 47,460 53,064 28,744 166,576 113,610
 Noninterest
 expense 92,135 88,515 84,135 346,703 323,452
 Net income
 (loss) 4,739 4,628 (28,833) 20,618 (37,121)
 Per share .11 .11 (.77) .50 (1.02)
 Dividends
 per share .11 .11 .22 .44 .88
 Average
 Balances
 Assets $9,597,436 $10,006,094 $10,303,050 $9,905,543 $10,183,832
 Earning
 Assets 8,819,715 9,232,742 9,523,299 9,135,790 9,420,322
 Loans,
 net of
 unearned
 income 6,212,067 6,388,644 6,879,058 6,472,379 6,966,274
 Deposits 7,724,885 7,776,595 7,816,450 7,829,312 7,721,536
 Stock-
 holders'
 equity 566,341 566,823 590,827 563,563 610,268
 Dec. 31, Sept. 30, Dec. 31,
 Period End Balances 1991 1991 1990
 Assets $9,710,955 $9,693,806 $10,369,475
 Earning assets 8,699,991 8,799,076 9,469,298
 Loans, net of unearned income 6,138,284 6,363,369 6,913,320
 Deposits 7,871,049 7,804,204 8,035,545
 Stockholders' equity 566,384 566,063 556,423
 Capital
 Average primary shares
 (year-to-date) 38,363,735 38,314,600 37,709,206
 Tier 1 capital ratio
 (1992 rules) (Pct.) 6.65 6.51 5.73
 Total risk-based capital ratio
 (1992 rules) 9.34 9.18 8.32
 Leverage ratio (1992 rules) 5.30 5.29 4.80
 Equity to assets 5.83 5.84 5.37
 Book value per share $14.34 $14.37 $14.23
 Credit Quality
 Allowance for credit losses $199,654 $233,431 $233,491
 As a percent of period
 end loans (Pct.) 3.25 3.67 3.38
 As a percent of nonaccruing loans 77.7 85.0 92.6
 As a percent of nonaccruing loans
 plus foreclosed properties 54.9 59.7 71.0
 Net charge-offs - year-to-date $176,461 $110,684 $87,716
 As a percent of
 average loans (Pct.) 2.73 2.25 1.26
 90 days past due and still accruing $46,113 $61,102 $58,132
 As a percent of period-end
 loans (Pct.) .75 .96 .84
 Nonaccruing loans $257,076 $274,655 $252,061
 Foreclosed properties (at lower
 of cost or market) 106,451 116,098 76,592
 Nonaccruing loans plus
 foreclosed properties $363,527 $390,753 $328,653
 As a percent of loans plus
 foreclosed properties (Pct.) 5.82 6.03 4.70
 Restructured loans $43,822 $25,145 $6,462
 -0- 1/21/92
 /CONTACT: E. Glenn Bowman, Senior Vice President and Treasurer, Dominion Bankshares Corporation, 703-563-7719/
 (DMBK) CO: Dominion Bankshares Corporation ST: Virginia IN: FIN SU: ERN


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