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ONE VALLEY BANCORP ANNOUNCES 11 PERCENT INCREASE IN EARNINGS

 CHARLESTON, W.Va., April 21 /PRNewswire/ -- One Valley Bancorp of West Virginia, Inc. (NASDAQ: OVWV), a $2.7 billion bank holding company headquartered in West Virginia, reported earnings for the first quarter of 1993 of $7,618,000, an 11.93 percent increase over the $6,806,000 reported during the same period last year.
 On a per share basis, One Valley Bancorp earned $0.59 during the first quarter of 1993, an 11.32 percent increase over the $.53 earned during the first quarter of 1992. The return on average assets (ROA) for the first quarter of 1993 was 1.14 percent, up from the 1.02 percent ROA for the same quarter of 1992. Similarly, the return on average equity (ROE) for the first quarter improved to 13.53 percent compared to 13.42 percent during the first quarter of 1992.
 J. Holmes Morrison, president and chief executive officer, stated that the improvement in earnings is primarily attributable to increased non-interest income as well as a lower provision for loan losses. Morrison stated that the "lower loan loss provisions are an indication of the continued improvement in the quality of the loan portfolio. Non-performing assets have continued to decline since the October 1991 purchase of a loan portfolio in the RTC-assisted acquisition of Atlantic Financial WV. Non-performing assets have declined from $17.2 million or 1.05 percent of total loans in March of 1992 to $10.4 million or 0.62 percent of total loans at March 31, 1993. In addition, the annualized ratio of net loan charge-offs as a percentage of average loans has declined from 0.35 percent in the first quarter of 1992 to 0.21 percent in the first quarter of 1993. All of these asset quality ratios compare very favorably to industry averages."
 First quarter 1993 earnings of $7,618,000 or $0.59 per share were consistent with the $7,513,000 or $0.59 earned in the fourth quarter of 1992. Net interest earnings declined by 1.8 percent from the fourth quarter of 1992, as declines in deposit costs have lagged declines in asset yields. Net overhead expenses increased by 2.7 percent in the first quarter of 1993 due to costs associated with the announced plans for discontinuance of an internal data processing operation and the conversion to an outsourced data processing system with M&I Data Services, Inc. of Milwaukee, Wisconsin. Provisions for loan losses of $1.3 million in the first quarter declined from the $2.5 million in the fourth quarter of 1992 due to continued improvement in asset quality.
 One Valley Bancorp's regular annual meeting of shareholders is to be held on April 27, 1993, at 10 a.m. at the Charleston Town Center Marriott. Additional information on One Valley's financial performance for the year of 1992 and the first quarter of 1993 will be presented at this meeting.
 One Valley Bancorp has eight affiliate banks which have 57 offices located throughout the state of West Virginia. Additional financial data on One Valley Bancorp follows.
 ONE VALLEY BANCORP OF WEST VIRGINIA, INC. AND SUBSIDIARIES
 Financial Highlights
 (In thousands, except per share data)
 For the Three Months
 Ended March 31
 1993 1992 Increase
 For the period (pct.)
 Net interest income $27,799 $27,709 0.32
 Net income 7,618 6,806 11.93
 Per common share
 Net income $0.59 $0.53 11.32
 Cash dividends $0.20 $0.17 17.65
 Book value $17.53 $15.92 10.11
 Financial ratios
 Return on assets (pct.) 1.14 1.02 --
 Return on equity (pct.) 13.53 13.42 --
 Daily averages
 Total assets $2,668,687 $2,662,477 0.23
 Loans, net 1,649,972 1,596,222 3.37
 Total earning assets 2,453,231 2,441,723 0.47
 Deposits 2,251,781 2,246,027 0.26
 Shareholders' equity 225,194 202,863 11.01
 At period end
 Total assets $2,712,757 $2,674,138 1.44
 Loans, net 1,657,324 1,612,008 2.81
 Total earning assets 2,487,719 2,438,916 2.00
 Deposits 2,282,607 2,237,420 2.02
 Shareholders' equity 225,854 204,518 10.43
 Consolidated Balance Sheets
 (In thousands)
 March 31 Dec. 31 March 31
 1993 1992 1992
 Assets
 Cash and due from banks $113,783 $128,301 $117,915
 Interest-bearing deposits
 with other banks 512 4,193 3,435
 Federal funds sold 132,125 102,275 93,850
 Cash and cash equivalents 246,420 234,769 215,200
 Investment securities (estimated
 market value, March 31, 1993 -
 $717,145; Dec. 31, 1992 -
 $718,761; March 31, 1992 -
 $741,334) 697,758 704,411 729,623
 Loans
 Total loans 1,685,776 1,683,140 1,635,816
 Less: allowance for loan
 losses 28,452 27,985 23,808
 Net loans 1,657,324 1,655,155 1,612,008
 Bank premises & equipment
 - net 67,146 67,819 66,090
 Other assets 44,109 44,840 51,217
 Total assets 2,712,757 2,706,994 2,674,138
 Liabilities and Shareholders' Equity
 Deposits
 Non-interest bearing 327,244 339,412 302,887
 Interest bearing 1,955,363 1,938,433 1,934,533
 Total deposits 2,282,607 2,277,845 2,237,420
 Short-term borrowings
 Federal funds purchased 21,564 17,718 15,634
 Repurchase agreements and
 other borrowings 143,667 155,941 170,594
 Total short-term borrowings 165,231 173,659 186,228
 Long-term borrowings 9,928 9,992 14,190
 Other liabilities 29,137 24,842 31,782
 Total liabilities 2,486,903 2,486,338 2,469,620
 Shareholders' equity:
 Preferred stock-$10 par value;
 1,000,000 shares authorized
 but none issued
 Common stock-$10 par value;
 20,000,000 shares authorized,
 Issued 13,153,016 shares at
 March 31, 1993; 13,140,490 shares
 at Dec. 31, 1992; and 10,938,306
 shares at March 31, 1992 131,530 131,405 109,383
 Capital surplus 40,724 40,692 40,591
 Retained earnings 56,729 51,688 57,673
 Treasury stock-270,000 shares
 at March 31, 1993, and Dec. 31,
 1992; and 225,000 shares at
 March 31, 1992, at cost (3,129) (3,129) (3,129)
 Total shareholders' equity 225,854 220,656 204,518
 Total liabilities and
 shareholders' equity 2,712,757 2,706,994 2,674,138
 Consolidated Statements of Income
 (Unaudited in thousands, except per share data)
 For the Three Months Ended March 31 1993 1992
 Interest income
 Interest and fees on loans
 Taxable $36,849 $39,675
 Tax-exempt 374 398
 Total 37,223 40,073
 Interest on investment securities
 Taxable 9,063 11,241
 Tax-exempt 872 1,142
 Total 9,935 12,383
 Other interest income 789 1,036
 Total interest income 47,947 53,492
 Interest expense
 Deposits 18,648 23,657
 Short-term borrowings 1,274 1,781
 Long-term borrowings 226 345
 Total interest expense 20,148 25,783
 Net interest income 27,799 27,709
 Provision for loan losses 1,328 2,475
 Net interest income
 after provision for loan losses 26,471 25,234
 Other income
 Trust Department income 1,611 1,274
 Service charges on deposit accounts 2,216 2,451
 Real estate loan processing & servicing fees 1,949 1,915
 Other service charges and fees 629 856
 Other operating income 2,452 1,303
 Securities transactions 0 (72)
 Total other income 8,857 7,727
 Other expenses
 Salaries and employee benefits 12,979 11,379
 Occupancy expense - net 1,093 1,090
 Equipment expenses 2,342 2,747
 Federal Deposit Insurance 1,284 1,128
 Other operating expenses 6,192 6,803
 Total other expenses 23,890 23,147
 Income before taxes 11,438 9,814
 Applicable income taxes 3,820 3,008
 Net income 7,618 6,806
 Net income per common share $0.59 $0.53
 Based on average shares outstanding of 12,875 12,844
 Consolidated Average Balance Sheets
 (Dollars in Thousands)
 Three Months Ended March 31
 1993 1992
 Amount Yield/Rate Amount Yield/Rate
 (pct.) (pct.)
 Assets
 Loans
 Taxable $1,655,624 9.03 $1,596,622 9.99
 Tax-exempt 22,501 10.21 22,789 10.64
 Total 1,678,125 9.04 1,619,411 10.00
 Less: allowance for
 losses 28,153 -- 23,189 --
 Net loans 1,649,972 9.20 1,596,222 10.15
 Investment securities
 Taxable 650,713 5.57 677,078 6.64
 Tax-exempt 47,614 11.10 62,776 11.03
 Total 698,327 5.95 739,854 7.01
 Federal funds sold &
 other 104,932 3.05 105,647 3.94
 Total earning
 assets 2,453,231 8.01 2,441,723 8.93
 Other assets 215,456 -- 220,754 --
 Total assets 2,668,687 -- 2,662,477 --
 Liabilities and Equity
 Interest-bearing liabilities
 Deposits 1,933,743 3.91 1,939,176 4.91
 Short-term borrowings 162,453 3.18 179,274 4.00
 Long-term borrowings 9,953 9.21 14,217 9.76
 Total interest-bearing
 liabilities 2,106,149 3.88 2,132,667 4.86
 Non-interest bearing
 deposits 318,038 -- 306,851 --
 Other liabilities 19,306 -- 20,096 --
 Total liabilities 2,443,493 -- 2,459,614 --
 Shareholders' equity 225,194 -- 202,863 --
 Total liabilities and
 equity 2,668,687 -- 2,662,477 --
 Interest income to
 earning assets -- 8.01 -- 8.93
 Interest expense to
 earning assets -- 3.32 -- 4.24
 Net interest margin -- 4.69 -- 4.69
 Note: Yields are computed on a fully taxable equivalent basis using the rate of 34 percent.
 Analysis of Loan Losses and Non-Performing Assets
 (Dollars in thousands)
 For the Three Months Ended March 31 1993 1992
 Allowance for loan losses
 Balance, beginning of period $27,985 $22,729
 Loan losses 1,160 1,618
 Loan recoveries 299 222
 Net charge-offs 861 1,396
 Provision for loan losses 1,328 2,475
 Balance, end of period 28,452 23,808
 Total loans, end of period 1,685,776 1,635,816
 Allowance for loan losses as a percent of
 total loans (pct.) 1.69 1.46
 Non-performing assets at quarter end
 Non-accrual loans $8,192 $10,714
 Foreclosed properties 2,131 5,399
 Restructured loans 99 1,111
 Total non-performing assets 10,422 17,224
 Non-performing assets as a percent of
 total loans (pct.) 0.62 1.05
 Loans past due over 90 days $2,460 $3,209
 Loans past due over 90 days as a percent
 of total loans (pct.) 0.15 0.20
 -0- 4/21/93
 /CONTACT: Lloyd P. Calvert of One Valley Bancorp, 304-348-7207/
 (OVWV)


CO: One Valley Bancorp of West Virginia, Inc. ST: West Virginia IN: FIN SU: ERN

DM-CD -- PG018 -- 8934 04/21/93 16:14 EDT
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