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FAIRFAX BANK & TRUST COMPANY ANNOUNCES RECORD FIRST QUARTER EARNINGS

 FAIRFAX, Va., April 18 /PRNewswire/ -- Today Fairfax Bank & Trust Company (NASDAQ: FBTC) reported record first quarter earnings for 1994. For the three-month period ending March 31, 1994, the Bank recorded net income of $526,000, or $.44 per share, compared with $322,000 or $.33 per share for the same time period in 1993, representing an increase of 63.4%. Per share calculations reflect the increase in shares outstanding from 960,964 to 1,174,057 resulting from the public offering of 200,000 shares in December, 1993 and sale of treasury stock. Return on average assets and equity were 1.24% and 14.62%, respectively, compared to .98% and 13.22% for the comparable period in 1993.
 In March, 1994, the Bank successfully completed its acquisition of the former Federal Savings Association of Falls Church, Virginia. The $1.4 million in new deposits were purchased from the Resolution Trust Company for a premium of $46,000. The Falls Church location is the seventh branch for Fairfax Bank & Trust Company.
 Net interest income for the period ending March 31, 1994 was $1.8 million compared with $1.5 million for the same period in 1993. This represents an increase of 20.9%, which can be primarily attributed to growth in the volume of earning assets. Average earning assets expanded from $117.2 million in 1993 to $155.4 million in 1994. Increases in earning assets out-paced growth in deposits, reflecting both improvement in the local economy spurring loan demand and favorable customer response to the Bank's wide array of lending programs.
 Total non-interest income increased significantly during this time period. For the first three months of 1994, non-interest income was $643,000, up from $446,000 for the same period in the prior year, an increase of 44.2%. Service charges on deposit accounts, the largest single component of non-interest income was $247,000 at March 31, 1994, up 18.2% over the comparable period in 1993. Other major components contributing to the increase in total non-interest income were fee income on deposit accounts and gains derived from the sale of mortgages. Income attributable to the sale of mortgages soared 56% to $106,000 at March 31, 1994, due to the increased level of mortgage refinancing and enhanced marketing efforts for new home financing. Fee income grew 55.4% to $261,000, up from $168,000 for the comparable period in 1993. The increases in service charges and fee income on deposit accounts can be attributed to growth in total deposits, the implementation of new service charge programs and an internal program of enhanced monitoring procedures aimed at reducing waivers. There were no securities gains or losses realized in the first quarter of 1994.
 By comparison with the growth experienced in non-interest income, non-interest expense increased a relatively modest 16.7%, when comparing March 31, 1994 to the same period in the prior year. The primary factor in this increase was in salary and benefits expense, which moved from $559,000 at March 31, 1993 to $829,000 at March 31, 1994. This growth was related to growth in staff, including the addition of a branch location, payment of bonuses in the first quarter of 1994, and increased commissions paid on mortgage loan originations. Other operating expenses and the provision for credit losses remained relatively stable.
 Fairfax Bank & Trust Company has attained annual growth rates averaging above 20% for the last five years. As of March 31, 1994, total assets were $174 million, an increase of 24.0% from the comparable period in 1993. Other real estate owned declined during this period to $1.7 million from $2.9 million, due to successful marketing of foreclosed properties and improved asset quality. Total securities increased from $29.5 million at March 31, 1993 to $42.9 million at March 31, 1994. Loans, net of unearned loan fees, grew 22.8% to $111.6 million at this quarter end and total deposits increased 20.5% to end the quarter at $145 million.
 The Bank's primary lending focus is on making loans to small and moderate sized businesses, professional groups and individuals in the Northern Virginia market area. While the Bank's commercial loans represent the largest portion of the portfolio and have experienced the most growth over the past five years, the Bank also offers a full range of consumer and mortgage loans.
 The Bank's capital position continues to exceed regulatory guidelines. At March 31, 1994, the Bank's ratio of total capital to risk-weighted assets was 13.80%, Tier-1 capital to risk-weighted assets as 12.80%, and the leverage ratio, which compares Tier-1 capital to total assets, was 8.25%. These ratios are well above the required regulatory minimums of 8.0%, 4.0% and 4.0%, respectively. The Bank is classified as a "well capitalized institution" under federal banking regulations. Book value at March 31, 1994 was $12.34 and the Bank paid a quarterly cash dividend of $.14 in February, 1994.
 Fairfax Bank & Trust Company was established in 1985, is headquartered in the City of Fairfax, and operates seven branches in Fairfax County, Prince William County and the City of Falls Church.
 FAIRFAX BANK & TRUST COMPANY
 Consolidated Financial Data
 (Dollars in thousands except per share amounts)
 Three Months Ended March 31,
 1994 1993 % Chg.
 EARNINGS SUMMARY:
 Interest income $2,620 $2,158 21.4%
 Interest expense (813) (663) 28.4%
 Net interest income 1,807 1,495 20.9%
 Provision for credit losses (37) (34) 8.8%
 Noninterest income 643 446 44.2%
 Noninterest expense (1,655) (1,418) 16.7%
 Income before income taxes 758 489 55.0%
 Income tax provision (232) (167) 38.9%
 Net income $526 $322 63.4%
 Per share:
 Earnings per share $0.44 $0.33 33.3%
 Cash dividend $0.14 $0.00 n/a
 Book value $12.34 $10.35 19.2%
 Weighted average shares
 outstanding 1,204,743 963,931 25.0%
 Total shares outstanding 1,174,057 960,964 22.2%
 PERFORMANCE RATIOS:
 Return on average assets 1.24% 0.98% n/a
 Return on average equity 14.62% 13.22% n/a
 CAPITAL RATIOS:
 Total capital to
 risk-weighted assets 13.80% 11.71% n/a
 Tier-1 capital to
 risk-weighted assets 12.80% 10.73% n/a
 Leverage ratio 8.25% 7.07% n/a
 BALANCE SHEET DATA AT PERIOD END:
 Total assets $174,377 $140,620 24.0%
 Total earning assets 161,257 126,407 27.6%
 FAIRFAX BANK & TRUST COMPANY
 Consolidated Financial Data
 (Dollars in thousands except per share amounts)
 Three Months Ended March 31,
 1994 1993 % Chg.
 Total deposits 144,809 120,164 20.5%
 Loans 111,568 90,894 22.8%
 Stockholder's equity 14,484 9,947 45.6%
 AVERAGE BALANCE SHEET DATA:
 Total assets $169,570 $130,816 29.6%
 Total earning assets 155,392 117,179 32.6%
 Total deposits 139,667 111,175 25.6%
 Loans 109,999 87,207 26.1%
 Stockholder's equity 14,393 9,741 47.8%
 CREDIT QUALITY DATA:
 Other real estate owned $1,712 $2,936 -41.7%
 Nonaccrual loans 2,063 1,292 59.7%
 Total nonperforming assets 3,775 4,228 -10.7%
 Net charge offs 25 34 -26.5%
 Reserve for credit losses 1,116 909 22.8%
 As a percent of loans:
 Nonperforming assets 3.38% 4.65% n/a
 Net charge offs 0.02% 0.04% n/a
 Reserve for credit losses 1.00% 1.00% n/a
 -0- 4/18/94
 /CONTACT: Ramona W. Rodriguez, chief financial officer of Fairfax Bank & Trust, 703-359-9090/
 (FBTC)


CO: Fairfax Bank & Trust Company ST: Virginia IN: FIN SU: ERN

DC-IH -- DC013 -- 7007 04/18/94 10:43 EDT
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