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VALLEY NATIONAL BANCORP MAINTAINS RECORD EARNINGS PACE FOR NINE MONTH PERIOD

 VALLEY NATIONAL BANCORP MAINTAINS RECORD EARNINGS
 PACE FOR NINE MONTH PERIOD
 WAYNE, N.J., Oct. 15 /PRNewswire/ -- Valley National Bancorp (NASDAQ: VNBP) today reported net income of $10.6 million, or $.56 per share for the third quarter ended Sept. 30, 1992, 47 percent above the $7.2 million, or $.38 per share, earned in the 1991 third quarter.
 For the nine month period ended Sept. 30, 1992, Valley earned $31.5 million, or $1.66 per share, a 44 percent increase from the $21.9 million, or $1.15 per share earned for the first nine months of 1991. Earnings per share figures have been adjusted for the 3:2 stock split effected in April of 1992.
 Gerald H. Lipkin, chairman of the board and chief executive officer, stated that during the quarter Valley experienced strong growth in its consumer loan portfolio and residential mortgage activity remains brisk. He also noted that the growth in operations since 1991, resulting from the acquisition of 24 branches, have helped to elevate net income to record levels. This combined with continued growth in non-interest fee income, principally from mortgage servicing activities also contributed to the strong performance.
 Results for the first nine months of 1992 produced an annualized return on average assets of 1.4 percent and a return on average equity of 20.4 percent, both of which are in the top one percent of the industry.
 Net interest income before the provision for possible loan losses was $29.3 million for the third quarter and $84.9 million for the nine months ended Sept. 30, 1992, representing increases of 33.6 percent and 32 percent from the respective 1991 periods.
 Valley's provision for possible loan losses for the quarter ended Sept. 30, 1992 was $2.3 million, versus $4.0 million a year ago. For the nine month period of 1992, the provision for possible loan losses was $12.8 million, compared with $9.1 million a year ago. Net charge- offs for the nine month period in 1992 were $4.5 million, equalling a ratio of annualized loan losses to average loans of 0.44 percent. The loan loss reserved totalled $30.1 million at Sept. 30, 1992 representing 2.0 percent of loans net of unearned income, and 67.8 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.
 Non-performing assets were $44.4 million, or 3.0 percent of loans net of unearned income at Sept. 30, 1992. At Dec. 31, 1991 non- performing assets were $37.8 million and $43.0 million at June 30, 1992.
 Other operating income for the third quarter includes gains on the sale of securities of $935,000 compared to $1.1 million during the same quarter of 1991. For the nine months ended Sept. 30, 1992 a one time $6.4 million gain on the sale of loans acquired in the RTC branch acquisitions and $5.5 million from securities gains strengthened other operating income for the third quarter and nine months were $3.6 million and $10.5 million respectively, up from the $3.4 million and $8.7 million for the year ago periods.
 Mortgage servicing fees contributed $1.2 million and $3.3 million for the third quarter and nine month period of 1992. This compares with respective contributions of $707,000 and $1.7 million for comparable 1991 periods. Trust fees and service charges on deposit accounts continued to increase during both the quarter and nine month periods.
 Non-interest expenses were $16.0 million for the third quarter, up 30.4 percent from 1991 and $46.9 million for the first nine months of 1992, up 37.4 percent from a year ago. This increase is a result of Valley's considerable expanded operations which grew from 29 branches in 18 communities on the beginning of 1991 to 53 branches in 33 communities at the end of the 1992 third quarter.
 Total assets were $3.1 billion at Sept. 30, 1992, up from $2.7 billion a year ago. Loans, net of unearned income were $1.5 billion at Sept. 30, 1992 up approximately $100 million over a year ago. Total deposits at Sept. 30, 1992 were $2.8 billion compared to $2.4 on Sept. 30, 1991 and reflect the acquisitions of eight branches and $190 million of deposits.
 Total shareholders' equity was $212.8 million at Sept. 30, 1992, equivalent to a book value of $11.17 per share and a tier one leverage ratio of 6.79 percent.
 Valley National Bancorp is a regional bank holding company, whose principal subsidiaries, Valley National Bank and Mayflower Financial Corporation, operate a total of 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, or any other company of similar name.
 VALLEY NATIONAL BANCORP
 Financial Summary
 (in thousands except for share and per share amounts)
 Three months Nine months
 Periods ended Sept. 30 1992 1991 1992 1991
 Interest income $56,242 $48,536 $169,212 $140,845
 Interest expense 26,914 26,579 84,220 76,441
 Net interest income 29,328 21,957 84,992 64,404
 Provision for loan losses 2,250 4,005 12,750 9,080
 Net interest income after
 provision for possible loan
 losses 27,078 17,952 72,242 55,324
 Other operating revenues 3,619 3,435 16,902 8,730
 Securities gains, net 935 1,095 5,510 1,157
 Total non-interest income 4,554 4,530 22,412 9,887
 Salaries and employee benefit
 expense 7,553 5,872 21,888 16,309
 Occupancy expense 2,137 1,689 6,630 5,014
 Other expense 6,295 4,696 18,433 12,845
 Total non-interest expense 15,985 12,257 46,951 34,168
 Income before income taxes 15,647 10,226 47,703 31,043
 Income taxes 5,072 3,008 16,160 9,100
 Net income 10,575 7,217 31,543 21,943
 Net income per share 0.56 0.38 1.66 1.15
 Average shares
 outstanding 19,042,187 19,022,154 19,035,079 19,022,264
 Financial Ratios
 Nine months ended 9/30/92 9/30/91
 Annualized return on average assets 1.42 1.37
 Annualized return on average equity 20.38 15.56
 Net interest rate yield (FTE) 4.42 4.75
 Annualized net loan losses to average loans 0.44 0.39
 Tier-one leverage 6.79 6.96
 SELECTED BALANCE SHEET INFORMATION
 (In millions)
 9/30/92 9/30/91
 Interest-earning assets $ 2,874 $ 2,495
 Interest bearing liabilities 2,524 2,187
 Loans, net 1,453 1,375
 Allowance for loan losses 30 21
 Deposits 2,791 2,398
 Shareholders' equity 213 191
 Total assets 3,075 2,677
 Book value per share $11.17 $10.02
 -0- 10/15/92
 /CONTACT: Gerald H. Lipkin of Valley National Bancorp, 201-305-4001, or Edmund R. Belak of Georgeson and Company, 212-440-9801, for Valley National Bancorp/
 (VNBP) CO: Valley National Bancorp ST: New Jersey IN: FIN SU: ERN


TM-SM -- NY092 -- 0658 10/15/92 16:54 EDT
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Date:Oct 15, 1992
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