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VALLEY NATIONAL BANCORP EARNINGS CONTINUE RECORD PACE FOR NINE MONTH PERIOD

 WAYNE, N.J., Oct. 20 /PRNewswire/ -- Valley National Bancorp (NASDAQ: VNBP) today reported record net income of $13.5 million, or $.56 per share, for the third quarter ended Sept. 30, 1993, 28.0 percent above the $10.6 million, or $.44 per share, earned in the 1992 third quarter.
 For the nine month period ended Sept. 30, 1993, Valley earned a record $40.9 million, or $1.70 per share, a 29.5 percent increase from the $31.5 million, or $1.33 per share earned for the first nine months of 1992. Earnings per share figures have been adjusted for the 5:4 stock split effected in April of 1993.
 Valley's results for the first nine months of 1993 produced an annualized return on average assets of 1.7 percent and a return on average equity of 22.7 percent, both of which keep Valley as one of the top performing banks in the country.
 Gerald H. Lipkin, chairman of the board and chief executive officer, said Valley experienced increased net interest income due to continued growth in its consumer loan portfolio and strong residential mortgage loan demand, coupled with lower interest expense on deposits. Continued growth in non-interest fee income from Valley's expanded operations, plus gains on securities transactions due to portfolio adjustments helped to offset increased non-interest expenses thereby contributing to the strong performance.
 On Sept. 30, 1993, Valley had $3.4 billion in assets, an increase of 9.9 percent from the $3.1 billion a year ago. Loans, net of unearned income, rose 17.2 percent above the prior year reaching $1.7 billion. Total deposits were $3.1 billion, an increase of 9.4 percent from the $2.8 billion a year ago. Valley's growth represents, in part, the addition of $226 million in assets, $137 million in loans and $205 million in deposits from the seven-office network of Peoples Bancorp merged into Valley on June 18, 1993.
 Net interest income before the provision for possible loan losses was $35.5 million for the third quarter and $101.1 million for the nine months ended Sept. 30, 1993, representing increases of 20.8 percent and 20.4 percent from the respective 1992 periods. Loan growth boosted total interest income 2.5 percent to $57.6 million for the third quarter, while it remained relatively flat at $168.1 million compared with the nine month period a year ago. In comparison with 1992 periods, total interest expense decreased 17.5 percent to $22.2 million for the 1993 third quarter and 20.2 percent to $67.1 million for the nine month period ended Sept. 30, 1993.
 Other operating income, exclusive of securities gains, for the third quarter and nine months ended Sept. 30, 1993, was $5.7 million and $13.7 million respectively, compared with $3.6 million and $18.1 million for the similar 1992 periods. The increase for the quarter reflects Valley's expanded operations and gains from residential mortgage loan sales, while the decrease for the 1993 nine months was due primarily to the one-time gain of $6.4 million realized during the 1992 second quarter from the sale of loans purchased from the RTC. Gains on the sale of securities for the 1993 third quarter and nine month period were $1.1 million and $6.7 million, respectively, compared with $935,000 and $5.5 million for the comparable 1992 periods.
 Due to Valley's expansion, non-interest expenses were $19.1 million and $52.6 million for the third quarter and nine month period of 1993, compared with $16.0 million and $47.1 million a year ago. Income taxes increased as a result of the retroactive adjustment of the federal income tax rate change to Jan. 1, 1993, on net income.
 Valley's provision for possible loan losses for the quarter and nine month period ended Sept. 30, 1993, was $1.5 million and $5.0 million, versus $2.3 million and $12.8 million a year ago. Valley's reserve for possible loan losses totaled $35.7 million at Sept. 30, 1993 representing 2.0 percent of loans, net of unearned income, and 92.1 percent of non-performing assets which includes non-accrual loans and other real estate owned including insubstance foreclosures and loans past due in excess of 90 days and still accruing interest. The increase from the $28.8 million at 1992 year end reflects additional provisions for loans acquired in the merger with People's.
 Non-performing assets were $38.7 million, or 2.2 percent of loans net of unearned income at Sept. 30, 1993, including $7.0 million from the People's acquisition. At Dec. 31, 1992, non-performing assets were $34.2 million, or 2.2 percent of loans.
 Total shareholders' equity was $256.1 million at Sept. 30, 1993, equivalent to a book value of $10.50 per share and a tier one leverage ratio of 7.39 percent.
 Valley National Bancorp is a regional bank holding company, whose principal subsidiary, Valley National Bank, operates 59 offices in Passaic, Bergen, Essex, Hudson and Morris counties in New Jersey.
 VALLEY NATIONAL BANCORP
 Financial Summary
 Earnings Summary
 (In thousands, except share and per share amounts)
 Period ended Three months Nine months
 Sept. 30, 1993 1992 1993 1992
 Interest income $ 57,649 $ 56,242 $ 168,148 $ 168,025
 Interest expense 22,170 26,862 67,055 84,057
 Net interest income 35,479 29,380 101,093 83,968
 Provision for
 loan losses 1,500 2,250 5,000 12,750
 Net interest income
 after provision for
 possible loan losses 33,979 27,130 96,093 71,218
 Other operg. revenues 5,726 3,618 13,731 18,089
 Securities gains, net 1,089 935 6,664 5,510
 Total non-interest
 income 6,815 4,553 20,395 23,599
 Staff expense 8,625 7,553 24,163 21,887
 Other expense 10,513 8,484 28,396 25,226
 Total non-interest
 expense 19,138 16,037 52,559 47,113
 Income before
 income taxes 21,656 15,646 63,929 47,704
 Income taxes 8,124 5,072 22,676 16,160
 Net income before
 cumulative effect of
 accounting change 13,532 10,574 41,253 31,544
 Cumulative effect of
 accounting change 0 0 (402) 0
 Net income 13,532 10,574 40,851 31,544
 Net income per share 0.56 0.44 1.70 1.33
 Average shares
 outstanding 24,371,142 23,802,734 24,064,052 23,793,849
 Financial Ratios
 (In percentages)
 Nine months ended Sept. 30, 1993 1992
 Annualized return on average assets 1.67 1.42
 Annualized return on average equity 22.65 20.38
 Net interest rate yield (FTE) 4.65 4.42
 Annualized net loan losses to
 average loans 0.22 0.44
 Tier-one leverage 7.39 6.79
 Selected Balance Sheet Information
 (In millions)
 Sept. 30
 1993 1992
 Interest-earning assets $ 3,174 $ 2,874
 Interest bearing liabilities 2,712 2,524
 Loans, net of unearned income 1,754 1,483
 Allowance for loan losses 36 30
 Deposits 3,053 2,791
 Shareholders' equity 256 213
 Total assets 3,381 3,075
 Book value per share $ 10.50 $ 8.94
 -0- 10/20/93
 /NOTE TO EDITORS: Valley National Bancorp has no relationship with any other company of a similar name/
 /CONTACT: Gerald H. Lipkin of Valley National Bancorp, 201-305-4001, or Edmund R. Belak of Georgeson and Co., 212-440-9801/
 (VNBP)


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

WB-GP -- NY046 -- 4574 10/20/93 12:26 EDT
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Date:Oct 20, 1993
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