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VALLEY NATIONAL BANCORP FIRST QUARTER NET INCOME INCREASES TO RECORD LEVEL

 WAYNE, N.J., April 22 /PRNewswire/ -- Valley National Bancorp (NASDAQ: VNBP) today reported net income of $14.3 million for the first quarter ended March 31, 1993, after a charge of $402,000 resulting from an accounting change. The results reflect a 38.8 percent increase above the $10.3 million earned in the first quarter 1992. Valley also announced that its board had authorized a limited stock repurchase program.
 Valley earned $0.75 per share, before the effect of the five for four stock split for the 1993 first quarter, an increase of 39.5 percent above the $0.54 per share earned in the year ago quarter. After the effect of the five for four stock split, Valley earned $0.60 per share for the 1993 first quarter, compared to $0.43 per share earned in the year ago quarter.
 In conjunction with the five for four stock split Valley's board of directors also proposed a 10 percent increase in the regular quarterly dividend to $0.88 per share on an annualized basis, commencing with the next dividend payment date July 1, 1993.
 Valley's results for 1993 first quarter translate into an annualized return on average assets of 1.81 percent and an annualized return on average equity of 25.1 percent, both of which are in the historical top 1 percent of the bank's peer group.
 Valley's assets totalled $3.2 billion at March 31, 1993, a 10 percent increase over the $2.9 billion in assets a year ago. Loans, net of unearned income increased to $1.5 billion at the end of the 1993 first quarter, 12.6 percent above a year ago. Total deposits at March 31, 1993 were $2.9 billion, 9 percent above the $2.6 billion reported a year ago.
 Gerald H. Lipkin, chairman of the board and chief executive officer, indicated that Valley's strong 1993 first quarter performance resulted from increased net interest income, principally from higher consumer loan and residential mortgage demand, and decreased interest expense. Non-interest income increase from banking and trust services, mortgage servicing and securities gains also contributed to Valley's record 1993 first quarter results.
 Net interest income, prior to the provision for possible loan losses was $32.4 million for the 1993 first quarter, a 19.6 percent increase above the $27.1 million for the year ago quarter.
 Other operating income, exclusive of securities gains for the three months ended March 31, 1993 was $4.0 million, compared with $4.4 million for the 1992 first quarter. Securities gains were $3.3 million for the 1993 first quarter, versus $2.9 million for the prior year period. Fees from mortgage servicing activities increased 16 percent during the 1993 first quarter reaching $1.1 million, compared with $984,000 a year ago.
 Non-interest expenses were $16.1 million for the period ended March 31, 1993, compared with $15.1 million for the similar quarter in 1992.
 Valley's provision for possible loan losses for the quarter ended March 31, 1993 was $1.5 million. The allowance for possible loan losses totaled $29.8 million at March 31, 1993, or 1.9 percent of loans, net of unearned income, and 79.9 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 of $28.8 million at 1992 year end.
 Non-performing assets, including non-accrual loans, other real estate owned, and loans past due in excess of 90 days and still accruing interest were $37.3 million, or 2.4 percent of loanion, or 4.0 percent of loans at March 31, 1992.
 Total shareholders' equity was $227.9 million at March 31, 1993, representing a book value of $9.55 on an adjusted basis after the split.
 Valley's board of directors also announced that on April 20, 1993 it had authorized management to repurchase up to 50,000 shares of its outstanding common stock. Purchases may be made from time to time through Dec. 31, 1993 in the open market or in privately negotiated transactions, at prices not exceeding prevailing market prices. Valley currently has 23.9 million shares outstanding. The acquired shares are to be held in treasury to be used for pension plan investments, stock option and other employee benefit plans and/or general corporate purposes.
 Valley National Bancorp is a "super community" bank holding company whose principal subsidiary is Valley National Bank which operates 53 offices 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, Ariz., or any other company of a similar name.
 VALLEY NATIONAL BANCORP
 Financial Summary
 EARNINGS SUMMARY
 (in thousands except for share
 and per share amounts)
 Three months ended March 31 1993 1992
 Interest income $55,229 $55,723
 Interest expense 22,526 28,633
 Net interest income 32,403 27,090
 Provision for loan losses 1,500 3,250
 Net interest income after provision
 for possible loan losses 30,903 23,840
 Other operating revenues 4,015 4,350
 Securities gains, net 3,272 2,903
 Total non-interest income 7,287 7,253
 Staff expense 7,646 7,113
 Other expense 8,438 8,034
 Total non-interest expense 16,084 15,147
 Income before income taxes 22,106 15,946
 Income taxes 7,451 5,620
 Income before cumulative effect
 of accounting change 14,655 10,326
 Cum. effect of accounting change (402) --
 Net income $14,253 $10,326
 Per share data:
 Income before cumulative effect
 of accounting change $ 0.62 $ 0.43
 Cum. effect of accounting change (0.02) --
 Net income per share $ 0.60 $ 0.43
 Weighted aver. shares outstanding 23,848,184 23,784,606
 FINANCIAL RATIOS
 (percent)
 Three months ended March 31 1993 1992
 Annualized return on average assets 1.81 1.45
 Annualized return on average equity 25.13 20.60
 Net interest rate yield (FTE) 4.62 4.47
 Annualized net loan losses to average
 loans 0.12 0.60
 Tier One Leverage Ratio 6.99 6.89
 SELECTED BALANCE SHEET INFORMATION
 (in millions)
 3/31/93 3/31/92
 Interest-earning assets $ 3,005 $ 2,708
 Interest-bearing liabilities 2,619 2,378
 Loans, net 1,565 1,390
 Allowance for loan losses 30 23
 Deposits 2,875 2,635
 Shareholders' equity 228 200
 Total assets $ 3,202 $ 2,914
 Book value per share $9.55 $8.43
 NOTE: Share and per share amounts at March 31, 1993 and 1992, have been restated for the five for four stock split effective April 16, 1993.
 -0- 4/22/93
 /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

LR-SG -- NY095 -- 9601 04/22/93 15:02 EDT
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Date:Apr 22, 1993
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