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
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|Date:||Apr 20, 1992|
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