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VALLEY NATIONAL BANCORP'S INCOME SOARS 42 PERCENT TO SET RECORD FOR THE SIX MONTH PERIOD

 VALLEY NATIONAL BANCORP'S INCOME SOARS 42 PERCENT
 TO SET RECORD FOR THE SIX MONTH PERIOD
 CLIFTON, N.J., July 16 /PRNewswire/ -- Valley National Bancorp (NASDAQ: VNBP) today reported record net income of $10.6 million or $0.56 per share, for the second quarter ended June 30, 1992. This compares with $7.2 million, or $0.38 per share, a 47 percent increase for the year ago quarter after adjusting for the 3:2 stock split in April 1992.
 For the first six months ended June 30, 1992, Valley earned a record $21.0 million, or $1.10 per share, compared with $14.7 million, or $0.77 per share on an adjusted basis, for the first half of 1991 reflecting an increase of 42 percent for the period.
 As of June 30, 1992, assets topped the $3 billion level for the first time.
 Gerald H. Lipkin, chairman and chief executive officer stated that Valley's record earnings for both periods were principally the result of the bank's recent expansion and were boosted further by securities gains and a gain from the sale of loans acquired when Valley expanded its franchise by purchasing four savings and loans with 22 branches from the Resolution Trust Corporation in 1991.
 Results for the first half of 1992 produced a return on average assets of 1.43 percent and a return on average equity of 20.6 percent, both of which are in the top percentile for the industry.
 Valley's provision for possible loan losses for the six months ended June 30, 1992, was $10.5 million, compared with $5.1 million for the same period in 1991. The provision for the quarter ended June 30, 1992, versus $3.4 million for the year ago quarter. Net charge-offs for the first six months of 1992 were $3.4 million, representing a ratio of annualized loan losses to average loans of 0.50 percent. The total loan loss reserve at June 30, 1992, was $29.1 million, representing 2.08 percent of loans net of unearned income, and 0.68 percent of non- performing assets which includes non-accrual loans, other real estate owned, including in-substance foreclosures and loans past due in excess of 90 days and still accruing interest. Valley's loan loss reserve totalled $23.2 million at March 31, 1992.
 Non-performing assets were $43.0 million, or 3.1 percent of loans net of unearned income at June 30, 1992. This compares with $37.8 million at Dec. 31, 1991, and $56.2 million at March 31, 1992.
 Lipkin stated the increased loan loss provision reflected Valley's on going concern over the nation's uncertain economic conditions and management's further desire to prepare the bank for unanticipated local conditions which may impact on it's loan portfolio in the future.
 Net interest income, prior to the provision for possible loan losses was $27.7 million for the second quarter and $55.7 million for the first six months of 1992, representing increases of 27 percent and 31 percent respectively above comparable 1991 periods. According to Lipkin, the increases were due primarily to additional interest income from investment securities acquired as a result of Valley's 1991 RTC acquisitions since loan volume remained flat combined with the low cost of deposits acquired from the RTC.
 Other operating income for the second quarter and first six months was bolstered by a one time $6.4 million gain on the sale of loans acquired in the RTC branch acquisitions and $4.6 million from securities gains. Excluding securities transactions and the special gain on the sale of loans, other operating income for the second quarter and first six months were $3.4 million and $6.9 million, respectively, up from the $2.8 million and $5.3 million reported for the comparable 1991 periods. Fees from Valley's mortgage servicing operations reached $2.1 million and trust fees amounted to $295,000 representing increases of 100 percent and 24 percent from the similar 1991 periods.
 Non-interest expenses were $30.1 million for the 1992 first half, up 41.3 percent from the comparable 1991 period. This reflects the growth of Valley's branch system which increased from 29 branches in 18 communities in early 1991 to 53 branches in 33 communities at June 30, 1992.
 Total assets reached $3.0 billion at June 30, 1992, up 33.3 percent from the $2.3 billion a year ago. Loans, net of unearned income were $1.4 billion at the end of the 1992 first half and equal to the comparable 1991 period. Total deposits were $2.7 billion at June 30, 1992, a 38.2 percent increase from the $2.0 billion a year ago and reflect both the 22 1991 RTC branch acquisitions and the May 22, 1992, acquisition of two branches of Powder Mill Bank from the FDIC.
 Total shareholders equity was $206.7 million at June 30, 1992, equivalent to a book value per share of $10.86 and a tier one leverage ratio of 6.77 percent.
 Valley National Bancorp is a regional bank holding company whose principal subsidiaries, Valley National Bank and Mayflower Savings Bank operate 53 branches in Passaic, Bergen, Essex, Hudson and Morris counties in New Jersey.
 Note: Valley National Bancorp (NASDAQ: VNBP) has no relationship with Valley National Corporation (NASDAQ: VNCP) of Phoenix, or any other company of a similar name.
 VALLEY NATIONAL BANCORP
 Financial Summary
 Earnings Summary
 (In thousands except for share and per share amounts)
 Periods ended Three months Six months
 June 30 1992 1991 1992 1991
 Interest income $56,331 $46,445 $112,970 $92,309
 Interest expense 28,641 24,655 57,306 49,862
 Net interest income 27,690 21,790 55,664 42,447
 Provision for loan losses 7,250 3,375 10,500 5,075
 Net interest income after
 provision for possible
 loan losses 20,440 18,415 45,164 37,372
 Other operating revenues 9,849 2,828 13,283 5,294
 Securities gains, net 1,672 60 4,575 62
 Total non-interest income 11,521 2,888 17,858 5,356
 Salaries and employee
 benefit expense 7,222 5,305 14,335 10,437
 Occupancy expense 2,274 1,671 4,494 3,325
 Other expense 6,355 4,089 12,137 8,149
 Total non-interest expense 15,851 11,065 30,966 21,911
 Income bef. income taxes 16,110 10,238 32,056 20,817
 Income taxes 5,468 3,020 11,087 6,092
 Net income 10,642 7,218 20,969 14,725
 Net income per share $0.56 $0.38 $1.10 $0.77
 Avg. shares outstdng. 19,035,289 19,022,154 19,031,487 19,022,319
 Financial Ratios
 Six months ended June 30 1992 1991
 Annualized return on average assets 1.43 pct 1.44 pct
 Annualized return on average equity 20.61 15.81
 Net interest rate yield (FTE) 4.40 4.89
 Annualized net loan losses to avg. loans 0.50 0.38
 Tier-one capital 6.77 8.27
 Selected Balance Sheet Information (in millions)
 June 30 1992 1991
 Interest earning assets $2,814 $2,084
 Interest bearing liabilities 2,481 1,781
 Loans, net 1,426 1,401
 Allowance for loan losses 29 18
 Deposits 2,747 1,988
 Shareholders' equity 207 187
 Total assets 3,023 2,267
 Book value per share $10.86 $9.85
 -0- 7/16/92
 /CONTACT: Gerald H. Lipkin of Valley National, 201-305-4001, or Edmund R. Belak, Jr., of Georgeson & Company, 212-440-9801, for Valley National/
 (VNBP) CO: Valley National Bancorp ST: New Jersey IN: FIN SU: ERN


SM-KD -- NY100 -- 9955 07/16/92 16:32 EDT
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