Printer Friendly

VALLEY NATIONAL BANCORP REPORTS 37 PERCENT RISE IN 1992 FIRST QUARTER NET INCOME

 VALLEY NATIONAL BANCORP REPORTS 37 PERCENT RISE
 IN 1992 FIRST QUARTER NET INCOME
 WAYNE, N.J., April 20 /PRNewswire/ -- Valley National Bancorp (NASDAQ: VNBP) today reported net income of $10.3 million, or 81 cents per share, for the first quarter ended March 31, 1992, a 37.5 percent increase above the $7.5 million, or 59 cents per share earned in the similar 1991 quarter.
 Valley's 1992 first quarter performance translates into a return on average assets of 1.45 percent and a return on average equity of 20.6 percent, both of which are in the top percentile for the industry.
 Gerald H. Lipkin, chairman of the board and chief executive officer, indicated that Valley's 1992 first quarter performance resulted from strong increases in both net interest income and non-interest revenues, as well as securities gains. Valley's performance was offset by the increase to the provision for possible loan losses and an increase in non-interest expense.


Lipkin also stated that interest income was enhanced by the addition of approximately $650 million in core deposits from the four savings and loan acquisition in the second half of 1991 and non-interest revenue increases from higher mortgage banking fees and security gains.
 Net interest income, prior to the provision for possible loan losses was $28 million for the 1992 first quarter, representing a 35.4 percent increase over the $20.7 million for the year ago quarter.
 Other operating income, exclusive of securities gains, for the three months ended March 31, 1992, was $3.4 million, compared with $2.5 million for the 1991 first quarter, representing a 39.3 percent increase. Securities gains amounted to $2.9 million for the 1992 first quarter, versus $3,000 for the prior year period. Fees from mortgage servicing activities doubled during the 1992 first quarter reaching $984,000, compared with $484,000 a year ago.
 Non-interest expenses were $15.1 million for the period ended March 31, 1992, compared with $10.8 million for the similar period in 1991. The 56.6 percent increase was due primarily to the expanded scope of Valley's operations which increased from 29 branches in 18 communities in early 1991 to 51 branches serving 31 communities by year end.
 Valley's provision for possible loan losses for the quarter ended March 31, 1992 was $3.25 million, above the $1.7 million provision a year ago and the $2.9 million for the 1991 fourth quarter. The allowance for possible loan losses totaled $23.18 million at March 31, 1992, or 1.7 percent of loans, net of unearned income, and 60.9 percent on 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 $21.9 million at 1991 year end.
 Non-performing assets were $37.8 million, or 2.7 percent of loans net of unearned income at March 31, 1992, equal to the $37.8 million, or 2.8 percent of loans net of unearned income at Dec. 31, 1991, and above the $33.4 million, or 2.4 percent of loans, net of unearned income at March 31, 1991. Net charge-offs for the first quarter of 1992 were $2 million, representing a ratio of annualized loan losses to average loans of 0.6 percent.
 Valley's assets were $2.6 billion at March 31, 1992, a 44 percent increase over the $2.0 billion in assets a year ago. Loans, net of unearned income remained at $1.4 billion at the end of the 1992 first quarter, about equal to a year ago. Total deposits at March 31, 1992 were $2.6 billion, 49 percent above the $1.8 billion reported a year ago. This reflects the net increase of approximately $650 million from the RTC branch acquisition program completed by Valley in the second half of 1991, as well as a net increase of approximately $221.8 million over the prior period.
 Total shareholders' equity was $200.5 million at March 31, 1992, representing a book value per share of $15.81, a tier one leverage ratio of 6.9 percent and a total risk based capital ratio of 13.1 percent.
 Valley National Bancorp is a regional bank holding company whose principal subsidiaries Valley Nation Bank and Mayflower savings bank operate 51 branches in Passaic, Bergen, Essex, Hudson and Morris counties in New Jersey.
 VALLEY NATIONAL BANCORP
 Earnings Summary
 (In thousands except for share and per share amounts)
 Three months ended March 31 1992 1991
 Interest income $56,638 $45,865
 Interest expense 28,665 25,207
 Net interest income 27,973 20,658
 Provision for loan losses 3,250 1,700
 Net interest income after provision
 for possible loan losses 24,723 18,958
 Other operating revenues 3,435 2,467
 Securities gains, net 2,903 3
 Total non-interest income 6,338 2,470
 Staff expense 7,112 5,133
 Other expense 8,003 5,714
 Total non-interest expense 15,115 10,847
 Income before income taxes 15,946 10,581
 Income taxes 5,620 3,072
 Net income 10,326 7,509
 Net income per share $0.81 $0.59
 Average shares outstanding 12,685,123 12,681,656
 Financial ratios (expressed as a percent):
 Annualized return on average assets 1.45 1.49
 Annualized return on average equity 20.60 16.27
 Net interest rate yield (FTE) 4.47 4.86
 Annualized net loan losses
 to average loans 0.60 0.29
 Tier One Capital 6.89 9.20
 VALLEY NATIONAL BANCORP
 Selected Balance Sheet Information
 (In millions)
 March 31 1992 1991
 Interest-earning assets 2,708 1,865
 Interest bearing liabilities 2,378 1,581
 Loans, net 1,387 1,416
 Allowance for loan losses 23 17
 Deposits 2,635 1,764
 Shareholders' equity 200 184
 Total assets 2,914 2,024
 Book value per share 15.81 14.53
 -0- 4/20/92
 /NOTE TO EDITORS: Valley National Bancorp has no relationship with Valley National Corporation (VNCP) of Phoenix, Ariz., or any other company of a similar name./
 /CONTACT: Gerald H. Lipkin of Valley National Bancorp, 201-305-4001, or Edmund R. Balak, Jr., of Georgeson and Co., 212-440-9801, for Valley National Bancorp/
 (VNBP) CO: Valley National Bancorp ST: New Jersey IN: FIN SU: ERN


SM-TS -- NY046 -- 0092 04/20/92 13:04 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 20, 1992
Words:1066
Previous Article:'THE JUNGLE BOOK,' DISNEY'S ANIMATED CLASSIC, WILL HAVE EXCLUSIVE WORLD TELEVISION PREMIERE ON THE DISNEY CHANNEL MAY 3
Next Article:RODMAN & RENSHAW FULLY OPERATIONAL IN TEMPORARY OFFICE SPACE FOLLOWING CHICAGO LOOP FLOODING


Related Articles
EXECUFIRST BANCORP, PARENT OF FIRST EXECUTIVE BANK, REPORTS FIRST QUARTER PROFIT
CITIZENS FIRST BANCORP REPORTS HIGHER EARNINGS
INDEPENDENCE REPORTS FIRST QUARTER NET INCOME OF $5 MILLION
CAPITAL BANCORP REPORTS 75 PERCENT INCREASE IN SECOND-QUARTER EARNINGS
VALLEY NATIONAL BANCORP'S INCOME SOARS 42 PERCENT TO SET RECORD FOR THE SIX MONTH PERIOD
VALLEY NATIONAL BANCORP MAINTAINS RECORD EARNINGS PACE FOR NINE MONTH PERIOD
CITIZENS FIRST CONTINUES DRAMATIC EARNINGS INCREASES
VALLEY NATIONAL BANCORP FIRST QUARTER NET INCOME INCREASES TO RECORD LEVEL
VALLEY NATIONAL BANCORP'S INCOME SETS RECORD FOR SIX MONTH PERIOD
VALLEY NATIONAL BANCORP EARNINGS CONTINUE RECORD PACE FOR NINE MONTH PERIOD

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters