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ONE VALLEY BANCORP ANNOUNCES THIRD QUARTER EARNINGS

 CHARLESTON, W.Va., Oct. 20 /PRNewswire/ -- One Valley Bancorp of West Virginia, Inc. (NASDAQ: OVWV), a $2.8 billion bank holding company headquartered in West Virginia, reported earnings for the third quarter of 1993 of $8,224,000, a 7.4 percent increase over the $7,657,000 reported during the third quarter of last year. On a per share basis, One Valley Bancorp earned $0.64 during the third quarter of 1993, an 8.5 percent increase over the $0.59 earned during the third quarter of 1992. The return on average assets (ROA) for the third quarter of 1993 was 1.20 percent, up from the 1.13 percent ROA for the same quarter of 1992. The return on average equity (ROE) for the third quarter was 14.01 percent compared to 14.35 percent during the third quarter of 1992.
 Year-to-date earnings also increased to $24,261,000 for the first nine months of 1993, up 10.5 percent from $21,964,000 during the same nine months of 1992. On a per share basis, earnings for the first nine months of 1993 totaled $1.88 compared to $1.71 for first nine months of 1992.
 J. Holmes Morrison, president and chief executive officer, stated that year-to-date earnings have improved largely due to an increase in non-interest income and a decrease in the 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."
 Morrison said "Non-performing assets have declined from $13.1 million or 0.78 percent of total loans at Sept. 30, 1992, to $8.6 million or 0.48 percent of total loans at Sept. 30, 1993. In addition, the annualized ratio of net loan charge-offs as a percentage of average loans has declined from 0.31 percent in the first nine months of 1992 to 0.19 percent in the first nine
months of 1993. All of these asset quality ratios compare very favorably to industry averages."
 Net interest earnings for the quarter increased by 2.9 percent from the third quarter of 1992, as declines in asset yields have been matched with lower deposit costs. Provisions for loan losses declined from $2.7 million in the third quarter of 1992 to $1.2 million in the third quarter of 1993, resulting in a 9.3 percent increase in net credit income when comparing the third quarter of 1993 to the third quarter of 1992. Non-interest income declined by 0.6 percent in the third quarter of 1993 when compared to the third quarter of 1993, but was up 8.5 percent through the first nine months of 1993 compared to the same period in 1992. Non-interest expenses increased by 3.9 percent in the third quarter of 1993 when compared to the third 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. A definitive agreement for One Valley to merge with Mountaineer Bankshares of W.Va., Inc. was announced in early August, which would give the company 80 offices in 49 towns and cities throughout West Virginia. With the addition of Mountaineer, it is expected that One Valley will be the largest bank holding company in the state.
 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 September 30
 1993 1992 Increase
 (pct.)
 For the period
 Net interest income $29,600 $28,769 2.89
 Net income 8,224 7,657 7.40
 Per common share
 Net income $0.64 $0.59 8.47
 Cash dividends $0.22 $0.18 22.22
 Book value $18.40 $16.73 9.98
 Financial ratios
 Return on assets (pct.) 1.20 1.13
 Return on equity (pct.) 14.01 14.35
 Daily averages
 Total assets $2,746,152 $2,700,184 1.70
 Loans, net 1,730,553 1,631,100 6.10
 Total earning assets 2,525,547 2,474,417 2.07
 Deposits 2,299,886 2,240,675 2.64
 Shareholders' equity 234,788 213,380 10.03
 For the Nine Months
 Ended September 30
 1993 1992 Increase
 (pct.)
 For the period
 Net interest income $86,523 $85,350 1.37
 Net income 24,261 21,964 10.46
 Per common share
 Net income $1.88 $1.71 9.94
 Cash dividends $0.62 $0.52 19.23
 Book value $18.40 $16.73 9.98
 Financial ratios
 Return on assets (pct.) 1.19 1.09
 Return on equity (pct.) 14.09 14.07
 Daily averages
 Total assets $2,711,334 $2,678,010 1.24
 Loans, net 1,686,432 1,610,831 4.69
 Total earning assets 2,495,979 2,456,045 1.63
 Deposits 2,277,841 2,239,628 1.71
 Shareholders' equity 229,607 208,123 10.32
 At period end
 Total assets $2,773,419 $2,681,271 3.44
 Loans, net 1,766,396 1,662,965 6.22
 Total earning assets 2,540,861 2,447,589 3.81
 Deposits 2,309,701 2,236,594 3.27
 Shareholders' equity 237,210 215,297 10.18
 ONE VALLEY BANCORP OF WEST VIRGINIA, INC. AND SUBSIDIARIES
 Consolidated Balance Sheets
 (unaudited in thousands)
 Sept. 30 Dec. 31 Sept. 30
 1993 1992 1992
 Assets
 Cash and due from banks $122,166 $128,301 $117,598
 Interest-bearing deposits
 with other banks 311 4,193 3,979
 Federal funds sold 70,800 102,275 97,950
 Cash and cash equivalents 193,277 234,769 219,527
 Investment securities (estimated
 market value, Sept. 30, 1993 -
 $718,880; Dec. 31, 1992 -
 $718,761; Sept. 30, 1992 -
 $793,943) 703,354 704,411 682,695
 Loans
 Total loans 1,795,762 1,683,140 1,689,549
 Less: allowance for loan
 losses 29,366 27,985 26,584
 Net loans 1,766,396 1,655,155 1,662,965
 Bank premises & equip, net 67,961 67,819 68,374
 Other assets 42,431 44,840 47,710
 Total assets $2,773,419 $2,706,994 $2,681,271
 Liabilities and Shareholders' Equity
 Deposits
 Non-interest bearing $335,103 $339,412 $319,121
 Interest bearing 1,974,598 1,938,433 1,917,473
 Total deposits 2,309,701 2,277,845 2,236,594
 Short-term borrowings
 Federal funds purchased 20,762 17,718 15,791
 Repurchase agreements and
 other borrowings 172,821 155,941 167,628
 Total short-term 193,583 173,659 183,419
 borrowings
 Long-term borrowings 9,797 9,992 14,070
 Other liabilities 23,128 24,842 31,891
 Total liabilities 2,536,209 2,486,338 2,465,974
 Shareholders' equity
 Preferred stock-$10 par value;
 1,000,000 shares authorized
 but not issued
 Common Stock-$10 par value;
 40,000,000 shares authorized,
 issued 13,163,126 shares at
 Sept. 30, 1993; 13,140,490
 shares at Dec. 31, 1992; and
 10,945,946 shares at
 Sept. 30, 1992 131,631 131,405 109,460
 Capital surplus 40,748 40,692 40,638
 Retained earnings 67,960 51,688 68,328
 Treasury stock-270,000 shares
 at Sept. 30, 1993, and
 Dec. 31, 1992; and 225,000
 shares at Sept. 30, 1992,
 at cost (3,129) (3,129) (3,129)
 Total shareholders' equity 237,210 220,656 215,297
 Total liabilities and
 shareholders' equity $2,773,419 $2,706,994 $2,681,271
 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 Sept. 30
 1993 1992
 Interest income
 Interest and fees on loans
 Taxable $37,799 $39,192
 Tax-exempt 480 387
 Total 38,279 39,579
 Interest on investment securities
 Taxable 8,836 10,518
 Tax-exempt 1,043 954
 Total 9,879 11,472
 Other interest income 546 810
 Total interest income 48,704 51,861
 Interest expense
 Deposits 17,604 20,812
 Short-term borrowings 1,279 1,937
 Long-term borrowings 221 343
 Total interest expense 19,104 23,092
 Net interest income 29,600 28,769
 Provision for loan losses 1,159 2,740
 Net interest income after provision
 for loan losses 28,441 26,029
 Other income
 Trust Department income 1,612 1,393
 Service charges on deposit accounts 2,643 2,399
 Real estate loan processing and
 servicing fees 1,916 1,996
 Other service charges and fees 971 943
 Other operating income 1,928 2,332
 Securities transactions (5) 58
 Total other income 9,065 9,121
 Other expenses
 Salaries and employee benefits 12,321 11,439
 Occupancy expense - net 1,257 1,125
 Equipment expenses 2,456 2,335
 Federal Deposit Insurance 1,293 1,257
 Other operating expenses 7,374 7,615
 Total other expenses 24,701 23,771
 Income before taxes 12,805 11,379
 Applicable income taxes 4,581 3,722
 Net income $8,224 $7,657
 Net income per common share $0.64 $0.59
 Based on average shares outstanding of 12,884 12,865
 For the Nine Months
 Ended Sept. 30
 1993 1992
 Interest income
 Interest and fees on loans
 Taxable $112,061 $118,014
 Tax-exempt 1,218 1,170
 Total 113,279 119,184
 Interest on investment securities
 Taxable 27,332 33,556
 Tax-exempt 2,764 3,127
 Total 30,096 36,683
 Other interest income 2,026 2,533
 Total interest income 145,401 158,400
 Interest expense
 Deposits 54,342 66,425
 Short-term borrowings 3,864 5,593
 Long-term borrowings 672 1,032
 Total interest expense 58,878 73,050
 Net interest income 86,523 85,350
 Provision for loan losses 3,816 7,712
 Net interest income after provision
 for loan losses 82,707 77,638
 Other income
 Trust Department income 4,964 4,086
 Service charges on deposit accounts 7,531 7,224
 Real estate loan processing and
 servicing fees 5,666 5,689
 Other service charges and fees 2,512 2,682
 Other operating income 6,375 5,244
 Securities transactions (5) 1
 Total other income 27,043 24,926
 Other expenses
 Salaries and employee benefits 37,545 34,315
 Occupancy expense - net 3,453 3,702
 Equipment expenses 7,814 7,244
 Federal Deposit Insurance 3,862 3,512
 Other operating expenses 20,180 21,609
 Total other expenses 72,854 70,382
 Income before taxes 36,896 32,182
 Applicable income taxes 12,635 10,218
 Net income $24,261 $21,964
 Net income per common share $1.88 $1.71
 Based on average shares outstanding of 12,881 12,854
 ONE VALLEY BANCORP OF WEST VIRGINIA, INC. AND SUBSIDIARIES
 Consolidated Average Balance Sheets
 (dollars in thousands)
 For the Three Months
 Ended September 30
 1993 1992
 Amount Yield/ Amount Yield/
 Rate Rate
 (pct.) (pct.)
 Assets
 Loans
 Taxable $1,730,825 8.66 $1,633,823 9.54
 Tax-exempt 29,352 9.98 23,070 10.11
 Total 1,760,177 8.69 1,656,893 9.55
 Less: Allowance for
 losses 29,624 -- 25,793 --
 Net loans 1,730,553 8.83 1,631,100 9.70
 Investment Securities
 Taxable 662,135 5.34 686,641 6.13
 Tax-exempt 62,851 10.21 52,071 11.10
 Total 724,986 5.76 738,712 6.48
 Federal Funds sold & other 70,008 3.09 104,605 3.08
 Total earning assets 2,525,547 7.79 2,474,417 8.46
 Other assets 220,605 -- 225,767 --
 Total assets 2,746,152 -- 2,700,184 --
 Liabilities and Equity
 Interest-bearing liabilities
 Deposits 1,955,408 3.57 1,919,332 4.31
 Short-term borrowings 180,973 2.80 208,187 3.70
 Long-term borrowings 9,823 8.93 14,096 9.68
 Total interest-bearing
 liabilities 2,146,204 3.53 2,141,615 4.29
 Non-interest bearing
 deposits 344,478 -- 321,343 --
 Other liabilities 20,682 -- 23,846 --
 Total liabilities 2,511,364 -- 2,486,804 --
 Shareholders equity 234,788 -- 213,380 --
 Total liabilities and
 equity 2,746,152 -- 2,700,184 --
 Interest income to
 earning assets -- 7.79 -- 8.46
 Interest expense to
 earning assets -- 3.00 -- 3.71
 Net interest margin -- 4.79 -- 4.75
 Note: Yields are computed on a fully taxable equivalent basis using the rate of 34 percent.
 Consolidated Average Balance Sheets
 (dollars in thousands)
 For the Nine Months
 Ended September 30
 1993 1992
 Amount Yield/ Amount Yield/
 Rate Rate
 (pct.) (pct.)
 Assets
 Loans
 Taxable $1,690,958 8.86 $1,612,616 9.78
 Tax-exempt 24,398 10.27 22,771 10.40
 Total 1,715,356 8.88 1,635,387 9.78
 Less: Allowance for
 losses 28,924 -- 24,556 --
 Net loans 1,686,432 9.03 1,610,831 9.93
 Investment Securities
 Taxable 668,659 5.45 693,515 6.45
 Tax-exempt 52,314 10.84 57,053 11.07
 Total 720,973 5.84 750,568 6.80
 Federal Funds sold & other 88,574 3.06 94,646 3.57
 Total earning assets 2,495,979 7.90 2,456,045 8.73
 Other assets 215,355 -- 221,965 --
 Total assets $2,711,334 -- $2,678,010 --
 Liabilities and Equity
 Interest-bearing liabilities
 Deposits $1,945,964 3.73 $1,926,153 4.61
 Short-term borrowings 173,642 2.98 193,447 3.86
 Long-term borrowings 9,888 9.09 14,155 9.74
 Total interest-bearing
 liabilities 2,129,494 3.70 2,133,755 4.57
 Non-interest bearing
 deposits 331,877 -- 313,475 --
 Other liabilities 20,356 -- 22,657 --
 Total liabilities 2,481,727 -- 2,469,887 --
 Shareholders equity 229,607 -- 208,123 --
 Total liabilities and
 equity $2,711,334 -- $2,678,010 --
 Interest income to
 earning assets -- 7.90 -- 8.73
 Interest expense to
 earning assets -- 3.15 -- 3.96
 Net interest margin -- 4.75 -- 4.77
 Note: Yields are computed on a fully taxable equivalent basis using the rate of 35 percent for 1993 and 34 percent for 1992.
 ONE VALLEY BANCORP OF WEST VIRGINIA, INC. AND SUBSIDIARIES
 Analysis of Loan Losses and Non-Performing Assets
 (dollars in thousands)
 For the Nine Months
 Ended Sept. 30
 1993 1992
 Allowance for loan losses
 Balance, beginning of period $27,985 $22,729
 Loan losses 3,653 4,931
 Loan recoveries 1,218 1,074
 Net charge-offs 2,435 3,857
 Provision for loan losses 3,816 7,712
 Balance, end of period $29,366 $26,584
 Total loans, end of period $1,795,762 $1,689,549
 Allowance for loan losses as a percent of
 total loans (pct.) 1.64 1.57
 Non-performing assets at quarter end
 Non-accrual loans $6,103 $8,237
 Foreclosed properties 2,275 4,808
 Restructured loans 237 100
 Total non-performing assets $8,615 $13,145
 Non-performing assets as a percent of
 total loans (pct.) ? 0.48 0.78
 Loans past due over 90 days $2,748 $2,898
 Loans past due over 90 days as a percent
 of total loans (pct.) 0.15 0.17
 -0- 10/20/93
 /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

KC -- PG010 -- 4816 10/20/93 17:34 EDT
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Date:Oct 20, 1993
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