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ONE VALLEY BANCORP ANNOUNCES RECORD QUARTERLY EARNINGS

    CHARLESTON, W.Va., July 14 /PRNewswire/ -- One Valley Bancorp of West Virginia, Inc. (NASDAQ: OVWV), a $2.7 billion bank holding company headquartered in West Virginia, today reported earnings for the second quarter of 1993 of $8,419,000, a 12.2 percent increase over the $7,501,000 reported during the second quarter of last year.
    On a per share basis, One Valley Bancorp earned $0.65 during the second quarter of 1993, a 12.1 percent increase over the $0.58 earned during the second quarter of 1992.  The return on average assets (ROA) for the second quarter of 1993 was 1.24 percent, up from the 1.12 percent ROA for the same quarter of 1992.  Similarly, the return on average equity (ROE) for the second quarter improved to 14.72 percent compared to 14.42 percent during the second quarter of 1992.
    Year-to-date earnings also increased by 12.1 percent to $16,037,000 for the first six months of 1993, up from $14,307,000 during the same six months of 1992.  On a per share basis, earnings for the first six months of 1993 totaled $1.25 compared to $1.11 (restated for a 20 percent stock dividend in February 1993) for first six months of 1992.
    J. Holmes Morrison, president and chief executive officer, stated that One Valley set several records in the second quarter of 1993.  "In the second quarter One Valley recorded its highest quarterly earnings per share, its highest quarterly return on average assets and its highest quarterly return on average equity while achieving its best level of loan quality, setting new lows in the ratio of non-performing assets to total loans and the ratio of loans over 90 days past due to total loans."
    The improvement in earnings continued to be 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 and are now at the lowest level in the history of One Valley Bancorp. Non-performing assets have declined from $15.5 million or 0.95 percent of total loans at June 30, 1992, to $9.4 million or 0.54 percent of total loans at June 30, 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 six months of 1992 to 0.18 percent in the first six months
of 1993.   All of these asset quality ratios compare very favorably to industry averages."
    Second quarter 1993 earnings of $8,419,000 were the highest ever recorded by One Valley.  Net interest earnings for the quarter increased by 0.9 percent from the second quarter of 1992, as declines in asset yields have been matched with lower deposit costs.  Provisions for loan losses declined from $2.5 million in the second quarter of 1992 to $1.3 million in the second quarter of 1993, resulting in a 5.4 percent increase in net credit income when comparing the second quarter of 1993 to the second quarter of 1992.  Non-interest income increased by 12.9 percent in the second quarter of 1993 when compared to the second quarter of 1992 due to increases in trust department income and income from service charges on deposit accounts, a result of One Valley's increasing customer base.  Non-interest expenses increased by 3.4 percent in the second quarter of 1993 when compared to the second quarter of 1992, largely due to additional costs associated with the previously announced discontinuance of an internal data processing operation and the conversion to an outsourced data processing system with M & I Data Services, Inc. of Milwaukee, Wis.
    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 June 30
                                        1993       1992      Increase
                                                               (pct.)
    For the period
     Net interest income              $29,124     $28,872       0.87
     Net income                         8,419       7,501      12.24
    Per common share
     Net income                         $0.65       $0.58      12.07
     Cash dividends                     $0.20       $0.17      17.65
     Book value                        $17.98      $16.32      10.17
    Financial ratios
     Return on assets (pct.)             1.24        1.12
     Return on equity (pct.)            14.72       14.42
    Daily averages
     Total assets                  $2,718,313  $2,671,125       1.77
     Loans, net                     1,677,886   1,604,948       4.54
     Total earning assets           2,508,364   2,451,793       2.31
     Deposits                       2,281,328   2,232,171       2.20
     Shareholders' equity             228,734     208,067       9.93
                                      For the Six Months
                                         Ended June 30
                                        1993       1992      Increase
                                                               (pct.)
    For the period
     Net interest income              $56,923     $56,581       0.60
     Net income                        16,037      14,307      12.09
    Per common share
     Net income                         $1.25       $1.11      12.61
     Cash dividends                     $0.40       $0.35      14.29
     Book value                        $17.98      $16.32      10.17
    Financial ratios
     Return on assets (pct.)             1.19        1.07
     Return on equity (pct.)            14.13       13.93
    Daily averages
     Total assets                  $2,693,637  $2,666,801       1.01
     Loans, net                     1,664,006   1,600,585       3.96
     Total earning assets           2,480,950   2,446,758       1.40
     Deposits                       2,266,636   2,239,099       1.23
     Shareholders' equity             226,974     205,465      10.47
    At period end
     Total assets                  $2,734,911  $2,644,853       3.41
     Loans, net                     1,708,302   1,608,372       6.21
     Total earning assets           2,504,473   2,415,770       3.67
     Deposits                       2,281,749   2,210,139       3.24
     Shareholders' equity             231,706     209,872      10.40
         ONE VALLEY BANCORP OF WEST VIRGINIA, INC. AND SUBSIDIARIES
                       Consolidated Balance Sheets
                        (unaudited in thousands)
                                     June 30    Dec. 31     June 30
                                       1993       1992        1992
    Assets
     Cash and due from banks         $124,765    $128,301   $110,416
     Interest-bearing deposits
      with other banks                    606       4,193      3,948
     Federal funds sold                93,860     102,275     22,460
      Cash and cash equivalents       219,231     234,769    136,824
     Investment securities (estimated
      market value, June 30, 1993 -
      $718,880; Dec. 31, 1992 -
      $718,761; June 30, 1992 -
      $793,943)                       701,705     704,411    780,990
     Loans
      Total loans                   1,737,439   1,683,140  1,633,190
      Less: allowance for loan
       losses                          29,137      27,985     24,818
       Net loans                    1,708,302   1,655,155  1,608,372
     Bank premises & equip, net        66,997      67,819     69,187
     Other assets                      38,676      44,840     49,480
        Total assets               $2,734,911  $2,706,994 $2,644,853
    Liabilities and Shareholders' Equity
     Deposits
      Non-interest bearing           $340,155    $339,412   $299,038
      Interest bearing              1,941,594   1,938,433  1,911,101
       Total deposits               2,281,749   2,277,845  2,210,139
     Short-term borrowings
      Federal funds purchased          22,236      17,718     14,561
      Repurchase agreements and
       other borrowings               156,542     155,941    167,372
       Total short-term borrowings    178,778     173,659    181,933
     Long-term borrowings               9,864       9,992     14,131
     Other liabilities                 32,814      24,842     28,778
       Total liabilities            2,503,205   2,486,338  2,434,981
     Shareholders' equity
      Preferred stock-$10 par value;
       1,000,000 shares authorized
       but none issued
      Common Stock-$10 par value;
       40,000,000 shares authorized,
       issued 13,153,766 shares at
       June 30, 1993; 13,140,490
       shares at Dec. 31, 1992; and
       10,944,546 shares at
       June 30, 1992                  131,538     131,405    109,445
      Capital surplus                  40,726      40,692     40,632
      Retained earnings                62,571      51,688     62,924
      Treasury stock-270,000 shares
       at June 30, 1993, and
       Dec. 31, 1992; and 225,000
       shares at June 30, 1992,
       at cost                         (3,129)     (3,129)    (3,129)
        Total shareholders' equity    231,706     220,656    209,872
         Total liabilities and
          shareholders' equity     $2,734,911  $2,706,994 $2,644,853
        ONE VALLEY BANCORP OF WEST VIRGINIA, INC. AND SUBSIDIARIES
                    Consolidated Statements of Income
            (Unaudited in thousands, except per share data)
                                                 For the Three Months
                                                     Ended June 30
                                                   1993        1992
    Interest income
     Interest and fees on loans
      Taxable                                     $37,413    $39,147
      Tax-exempt                                      364        385
       Total                                       37,777     39,532
     Interest on investment securities
      Taxable                                       9,433     11,797
      Tax-exempt                                      849      1,031
       Total                                       10,282     12,828
     Other interest income                            691        687
       Total interest income                       48,750     53,047
    Interest expense
     Deposits                                      18,090     21,956
     Short-term borrowings                          1,311      1,875
     Long-term borrowings                             225        344
       Total interest expense                      19,626     24,175
    Net interest income                            29,124     28,872
    Provision for loan losses                       1,329      2,497
    Net interest income after provision
     for loan losses                               27,795     26,375
    Other income
     Trust Department income                        1,741      1,419
     Service charges on deposit accounts            2,672      2,374
     Real estate loan processing and
      servicing fees                                1,801      1,778
     Other service charges and fees                   912        883
     Other operating income                         1,995      1,609
     Securities transactions                            0         15
      Total other income                            9,121      8,078
    Other expenses
     Salaries and employee benefits                12,245     11,497
     Occupancy expense - net                        1,103      1,487
     Equipment expenses                             3,016      2,162
     Federal Deposit Insurance                      1,285      1,127
     Other operating expenses                       6,614      7,191
      Total other expenses                         24,263     23,464
    Income before taxes                            12,653     10,989
    Applicable income taxes                         4,234      3,488
    Net income                                     $8,419     $7,501
    Net income per common share                     $0.65      $0.58
    Based on average shares outstanding of         12,884     12,858
                                                  For the Six Months
                                                     Ended June 30
                                                   1993        1992
    Interest income
     Interest and fees on loans
      Taxable                                     $74,262    $78,822
      Tax-exempt                                      738        783
       Total                                       75,000     79,605
    Interest on investment securities
      Taxable                                      18,496     23,038
      Tax-exempt                                    1,721      2,173
       Total                                       20,217     25,211
     Other interest income                          1,480      1,723
       Total interest income                       96,697    106,539
    Interest expense
     Deposits                                      36,738     45,613
     Short-term borrowings                          2,585      3,656
     Long-term borrowings                             451        689
       Total interest expense                      39,774     49,958
    Net interest income                            56,923     56,581
    Provision for loan losses                       2,657      4,972
    Net interest income after provision
     for loan losses                               54,266     51,609
    Other income
     Trust Department income                        3,352      2,693
     Service charges on deposit accounts            4,888      4,825
     Real estate loan processing and
      servicing fees                                3,750      3,693
     Other service charges and fees                 1,541      1,739
     Other operating income                         4,447      2,912
     Securities transactions                            0        (57)
      Total other income                           17,978     15,805
    Other expenses
     Salaries and employee benefits                25,224     22,876
     Occupancy expense - net                        2,196      2,577
     Equipment expenses                             5,358      4,909
     Federal Deposit Insurance                      2,569      2,255
     Other operating expenses                      12,806     13,994
      Total other expenses                         48,153     46,611
    Income before taxes                            24,091     20,803
    Applicable income taxes                         8,054      6,496
    Net income                                    $16,037    $14,307
    Net income per common share                     $1.25      $1.11
    Based on average shares outstanding of         12,879     12,850
      ONE VALLEY BANCORP OF WEST VIRGINIA, INC. AND SUBSIDIARIES
                    Consolidated Average Balance Sheets
                          (dollars in thousands)
                                          For the Three Months
                                              Ended June 30
                                        1993                1992
                                   Amount   Yield/     Amount   Yield/
                                             Rate                Rate
                                             (pct.)              (pct.)
    Assets
    Loans
     Taxable                    $1,685,598    8.90  $1,607,170    9.80
     Tax-exempt                     21,266   10.40      22,451   10.45
      Total                      1,706,864    8.92   1,629,621    9.81
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Date:Jul 14, 1993
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