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FIRST VIRGINIA ANNOUNCES RECORD EARNINGS AGAIN

 FALLS CHURCH, Va., Jan. 19 /PRNewswire/ -- First Virginia Banks, Inc. (NYSE: FVB) once again reports record earnings showing an increase of 40 percent for the full year ended Dec. 31, 1992.
 Annual income for 1992 totaled $97,473,000 as compared to the $69,608,000 earned in 1991. Net income per share in 1992 was $3.02, up from the $2.17 per share earned in 1991. The prior year has been restated to reflect the three-for-two common stock split declared in 1992. Net income for 1992 represents a 1.50 percent return on average total assets and 17.03 percent return on stockholders' equity as compared to the 1.22 percent and 13.44 percent, respectively, earned in 1991.
 For the fourth quarter of 1992, net income of $26,542,000, or $.82 per share, was up 42 percent from the $18,592,000, or $.58 per share earned in the fourth quarter of 1991. For the fourth quarter, the return on average total assets was 1.59 percent, and the return on equity equaled 17.74 percent as compared to the 1.25 percent and 13.93 percent, respectively, reported in the previous year's fourth quarter.
 Robert H. Zalokar, chairman and chief executive officer, indicated that the increase in earnings was due to a continued improvement in the net interest margin as well as strong loan demand. Mr. Zalokar said, "The company is expanding its traditionally strong position in the indirect consumer automobile loan business with growth coming in Baltimore, West Virginia and East Tennessee." In addition, due to the company's reputation for safety, a strong capital position, and its retail orientation, the company's share of deposits in Virginia has increased from 7.5 percent in 1990 to 9.3 percent in mid-1992, according to the latest available data. The increase in deposits, coupled with a low increase in noninterest expenses, has allowed the company to achieve one of the best efficiency ratios among the 100 largest banks in the country.
 Total loans at Dec. 31, 1992, were $3.793 billion, up 9 percent from the $3.471 billion at the end of the previous year. Total deposits were $6.014 billion, up 12 percent from the $5.350 billion in 1991, while total assets were $6.841 billion, up 12 percent from the $6.119 billion at the end of 1991. Stockholders' equity increased 12 percent during 1992 to $607.399 million as compared to $540.118 million at the end of 1991. At Dec. 31, 1992, the company's Tier I Leverage Ratio was 8.92 percent as compared to 8.64 percent at the end of 1991, and it was significantly higher than the regulatory minimum of 3.0 percent.
 On Dec. 31, 1992, nonperforming assets were $32,691,000 and represented only .85 percent of total loans. These figures compare favorably to the $34,922,000, or .99 percent of total loans at the end of 1991 and they are significantly below the levels of the other banks in the company's market area and both its southeastern and national peer groups of banks. On Dec. 31, 1992, the allowance for loan losses totaled $49,340,000, or 1.28 percent of loans and covered nonperforming loans 2.29 times and 1992 charge-offs 3.85 times. Loan charge-offs were .35 percent of average loans during 1992 compared to .38 percent during 1991.
 During the fourth quarter, the company adopted FASB 109, "Accounting for Income Taxes," which resulted in a one-time charge of $886,000, or $.03 per share, to income. The company will adopt FASB 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions," in the first quarter of 1993. It is estimated that the transition obligation will be approximately $13 million and that the annual effect of adopting this pronouncement will be to reduce the company's income by approximately $.04 per share.
 Currently, there are 20 member banks in the First Virginia Banks, Inc. group and they operate 318 offices. Sixteen of the banks with 267 offices are in Virginia; two banks with 35 offices are in Maryland, and two banks with 16 offices are in Tennessee.
 FIRST VIRGINIA BANKS, INC.
 FINANCIAL DATA
 (Dollars in thousands, except per share data)
 Three Months ended 12 Months Ended
 Dec. 31 Dec. 31
 1992 1991 1992 1991
 FOR THE PERIOD ENDED DEC. 31:
 Interest income $130,551 $130,475 $525,270 $515,837
 Interest expense 45,003 62,776 204,826 260,286
 Net interest income 85,548 67,699 320,444 255,551
 Provision for loan losses 4,192 4,333 17,355 14,024
 Other income 20,096 18,334 77,087 72,283
 Other expenses 62,644 56,946 238,891 218,243
 Provision for income taxes 12,266 6,162 43,812 25,959
 Net income $ 26,542 $ 18,592 $ 97,473 $ 69,608
 Net income per common share $ 0.82 $ 0.58 $ 3.02 $ 2.17
 Earnings per share of common stock for the 12 months ended Dec. 31, after giving effect to dividends on preferred stock of $61,000 in 1992 and $72,000 in 1991, are based on 32,252,000 and 32,092,000 average shares outstanding, respectively. Prior periods have been restated to reflect the 3-for-2 common stock split paid on July 27, 1992.
 Average earning assets $6,213,124 $5,498,696 $6,031,125 $5,257,913
 Yield on earning assets
 (in percent) 8.53 9.62 8.85 9.98
 Avg time dpsts & brwd
 funds 5,122,532 4,568,559 5,002,343 4,362,523
 Average interest cost
 (in percent) 3.49 5.45 4.09 5.97
 Net yield on earning
 assets (in percent) 5.65 5.09 5.46 5.03
 Average assets 6,693,154 5,964,054 6,503,428 5,701,385
 Return on average assets
 (in percent) 1.59 1.25 1.50 1.22
 Average stockholders'
 equity 598,503 534,047 572,273 517,854
 Return on average equity
 (in percent) 17.74 13.93 17.03 13.44
 AS OF DECEMBER 31:
 Total assets $6,840,547 $6,119,260
 Demand deposits 1,012,268 834,875
 Savings and time deposits 5,001,478 4,515,096
 Total deposits 6,013,746 5,349,971
 Loans (net) 3,793,033 3,470,561
 Stockholders' equity 607,399 540,118
 Book value per share 18.85 16.80
 -0- 1/19/93
 /CONTACT: Richard F. Bowman, vice president and treasurer of First Virginia Banks, 703-241-3685/
 (FVB)


CO: First Virginia Banks, Inc. ST: Virginia IN: FIN SU: ERN

PS -- NY014 -- 6174 01/19/93 09:30 EST
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Date:Jan 19, 1993
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