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VALLEY NATIONAL BANCORP'S INCOME SETS RECORD FOR SIX MONTH PERIOD

 WAYNE, N.J., July 15 /PRNewswire/ -- Valley National Bancorp (NASDAQ: VNBP) today reported record net income of $27.3 million, or $1.14 per share for the six month period ended June 30, 1993, compared with $21.0 million, or $.88 per share, for the same period of 1992, after adjusting for the 5:4 stock split in 1993, reflecting an increase of 30 percent.
 Net income of $13.1 million, or $.55 per share was reported for the second quarter ended June 30, 1993. The results reflect a 23 percent increase above the $10.6 million, or $.45 per share earned for the second quarter of 1992, on an adjusted basis.
 Valley's results for the first six months of 1993 translate into an annualized return on average assets of 1.72 percent and an annualized return on average equity of 23.4 percent, both of which continue to place Valley among the nations best performing banks.
 On June 30, Valley's assets totaled $3.4 billion, a new high for the company. This amounted to a 13 percent increase over the $3.0 billion in assets a year ago. Most significantly, loans net of unearned income increased to $1.75 billion, 23 percent above a year ago. Total deposits were $3.1 billion, 12 percent above the $2.7 billion reported a year ago. These figures include the addition of $226 million of assets, $137 million of loans and $205 million of deposits -- all of Peoples Bancorp which was merged into Valley on June 18, 1993. The expansion into new communities with the seven office locations along with People's deposit and loan customers should add to the future profitability of Valley.
 Gerald H. Lipkin, chairman of the board and chief executive officer, indicated that Valley's strong performance for the first six months of 1993 resulted from increased net interest income, principally from strong consumer loan and residential mortgage loan demand, and decreased interest expense on deposits. Gains from securities and loan sales, offset by increases in other operating expense categories, also contributed to Valley's results for the period.
 Net interest income, prior to the provision for loan losses was $33.2 million for the second quarter and $65.6 million for the first six months of 1993, representing an increase of 21 percent and 20 percent, respectively, above the comparable 1992 periods. The increased volume of new consumer, residential and commercial loans at current lower interest rates resulted in interest income remaining almost unchanged from the prior year, while interest expense decreased by $5.8 million or 20.3 percent and $12.3 million or 21.5 percent from the first quarter and six months of 1993 over the same periods in 1992.
 Other operating income, exclusive of securities gains for the three and six months ended June 30, 1993 was $4.0 million and $8.0 million. This compares with $10.1 million and $14.5 million reported for the same periods during 1992. The decline was due principally to the one time gain of $6.4 million during the second quarter of 1992 on the sale of loans acquired from the RTC. Securities gains for the same period in 1993 amounted to $2.3 million and $5.6 million, respectively, as compared to $1.7 million and $4.6 million in 1992.
 Non-interest expenses were $17.3 million and $33.4 million for the second quarter and first six months of 1993 compared with $15.9 million and $31.1 million for the same periods in 1992, reflecting the increased size of the operations.
 Valley's provision for possible loan losses for the quarter and six months ended June 30, 1993 was $2.0 million and $3.5 million. This compares with a provision of $7.3 million and $10.5 million for the same periods in 1992. The allowance for possible loan losses totaled $34.8 million at June 30, 1993 or 2 percent of loans, net of unearned income, and 87.2 percent of non-performing assets which includes non-accrual loans, other real estate owned, including insubstance foreclosures, and loans past due in excess of 90 days and still accruing interest. This compares with a loan loss reserve at year end of $28.8 million and reflects additional reserves for loans in the People's portfolio acquired.
 Non-performing assets were $39.9 million, or 2.3 percent of loans net of unearned income at June 30, 1993 which includes $7 million acquired as part of the Peoples acquisition. This compares with $34 million, or 2.2 percent of loans at Dec. 31, 1992.
 Total shareholders equity was $247.4 million at June 30, 1993, representing a book value of $10.16 per share and a tier one leverage ratio of 7.57 percent.
 Valley National Bancorp is a regional bank holding company whose principal subsidiary, Valley National Bank, operate 59 branches in Passaic, Bergen, Essex, Hudson and Morris counties in New Jersey.
 VALLEY NATIONAL BANCORP
 Financial Summary
 (In thousands, except share and per share amounts)
 Periods ended June 30, Three months Six Months
 1993 1992 1993 1992
 Interest income $ 55,270 $ 56,061 $ 110,499 $ 111,784
 Interest expense 22,059 28,562 44,885 57,195
 Net interest income 33,211 27,499 65,614 54,589
 Provision for loan losses 2,000 7,250 3,500 10,500
 Net interest income after
 provision for possible
 loan losses 31,211 20,249 62,114 44,089
 Other operating revenues 3,890 10,119 8,004 14,470
 Securities gains, net 2,302 1,672 5,575 4,575
 Total non-interest income 6,292 11,791 13,579 19,046
 Salaries and employee
 benefit expense 7,889 7,222 15,538 14,335
 Occupancy expense 2,294 2,274 4,648 4,494
 Other expense 7,151 6,434 13,235 12,248
 Total non-interest expense 17,334 15,930 33,421 31,077
 Income before income taxes 20,169 16,110 42,272 32,057
 Income taxes 7,101 5,468 14,552 11,087
 Net income $ 13,068 $ 10,642 $ 27,720 $ 20,970
 Net income per share $ 0.55 $ 0.45 $ 1.14 $ 0.88
 FINANCIAL RATIOS
 (In percentages)
 Six months ended June 30, 1993 1992
 Annualized return on average assets 1.72 1.43
 Annualized return on average equity 23.44 20.61
 Net interest rate yield (FTE) 4.65 4.40
 Annualized net loan losses
 to average loans 0.25 0.50
 Tier-one leverage 7.57 6.77
 SELECTED BALANCE SHEET INFORMATION
 (dollars in millions)
 Period ended June 30, 1993 1992
 Interest-earning assets $ 3,174 $ 2,814
 Interest bearing liabilities 2,723 2,481
 Loans, net 1,753 1,426
 Allowance for loan losses 35 29
 Deposits 3,078 2,747
 Shareholders' equity 247 207
 Total assets 3,395 3,023
 Book value per share $ 10.16 $ 8.69
 -0- 7/15/93
 /CONTACT: Gerald H. Lipkin of Valley National Bancorp, 201-305-4001; or Edmund R. Belak Jr. of Georgeson & Company, 212-440-9801, for Valley National Bancorp/
 (VNBP)


CO: Valley National Bancorp ST: New Jersey IN: FIN SU: ERN

WB-MP -- NY037 -- 1982 07/15/93 12:52 EDT
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Date:Jul 15, 1993
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