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VALLICORP REPORTS RECORD FOURTH QUARTER, YEAR-END RESULTS; NET INCOME, EPS INCREASE 20 PERCENT OVER PRIOR YEAR;

 Board Declares Regular Quarterly Cash Dividend
 FRESNO, Calif., Jan. 20 /PRNewswire/ -- ValliCorp Holdings Inc.,


(NASDAQ: VALY) today announced record earnings for both the fourth quarter and the year ended Dec. 31, 1992. Expanded net interest income and improved credit quality lead to a 17 percent increase in fourth quarter net income and yielded a 20 percent increase for the year.
 Based on the company's strong performance, and consistent with its cash dividend policy, the board of directors today also approved a cash dividend of 6 cents per share, payable Feb. 15, 1993 to stockholders of record on Feb. 1, 1993.
 Year-End Results
 Net income for the quarter just ended, was a record $1,317,000, or 29 cents per share, a 17 percent increase over fourth quarter earnings of $1,126,000, or 25 cents per share, in 1991.
 For the year ended Dec. 31, 1992, net income was $4,895,000, or $1.10 per share on a primary basis, compared to $4,073,000, or 94 cents per share, in the prior year. This gain represents a 20 percent increase in earnings, 1992 over 1991. Net interest income, net of loan loss provision, was $22,288,000 in 1992 compared to $20,666,000 in 1991.
 Results for the year were ahead of analyst expectations, which had been in the range of $1 per share for the year.
 Performance Assessment
 According to J. Mike McGowan, president and chief executive officer, "Our markets in the Central San Joaquin Valley remained relatively strong in 1992. During the year, ValliCorp enjoyed 3 percent growth in its loan portfolio and a 9.5 percent increase in net interest income, plus cost efficiency gains and a 23 basis point improvement in our nonperforming asset ratio. ValliCorp's results were sufficient to be deemed by Forbes as one of the top 10 small banks in the country.
 "And, we plan to continue doing what we do best," McGowan added. "ValliCorp has been very successful at focusing on the banking needs and opportunities it finds in central California's smaller communities and in certain niche markets."
 Comparing Dec. 31, 1992, to 1991, ValliCorp's total assets were $455 million vs. $433 million; deposits totaled $411 million, up 4.8 percent over the $392 million posted at year-end 1991; total loans were $327 million compared with $318 million in the prior year. Return on average assets for the year ended Dec. 31, 1992, increased to 1.10 percent from 1.00 percent for 1991. Reserves for possible credit losses as a percent of loans in 1992 was 1.56 percent compared to 1.52 percent in 1991. Non-performing assets as a percent of total assets improved to 1.09 percent compared to 1.32 percent a year earlier -- a direct reflection of ValliCorp's continued focus on asset quality. Book value per share rose 11 percent to $9.14 from $8.25 at Dec. 31, 1992 and 1991 respectively.
 Outlook
 Discussing the company's outlook for 1993, McGowan stated, "We are very optimistic about the Central Valley's prospects, to which ValliCorp is so closely tied. While other parts of California may continue in recession, we expect better than average business and retail growth in the San Joaquin Valley. The diversity and more conservative nature of our region's economy and the strength of its larger basic industries, such as agriculture, provide a solid business base for ValliCorp's banking products and services."
 Merger Update
 As previously announced, ValliCorp plans to merge with Pacific Bancorporation, the $209 million holding company parent of Community First Bank of Bakersfield, Calif. Subject to certain conditions, including stockholder and regulatory approval and the completion of minimum financing requirements, ValliCorp plans to complete the merger by the second quarter of 1993.
 Pacific recently announced year-end earnings of $679,046, up 59 percent from 1991, and has significantly reduced its nonperforming assets to total assets ratio to 1.59 percent at Dec. 31, 1992, from 2.82 percent at Dec. 31, 1991. This ratio has been as high as 5.9 percent in 1989 and has decreased since that time.
 Wolf Muelleck, executive vice president and chief financial officer of ValliCorp, stated, "We continue to believe the merger with Pacific makes sense and is consistent with our strategic objectives, particularly in light of Pacific's dramatically improved profitability and asset quality in 1992."
 ValliCorp Holdings Inc. is a $455 million multi-bank holding company with two bank subsidiaries: Bank of Fresno and Merced Bank of Commerce. If approved by regulators and shareholders, the merged companies would rank ValliCorp among the top 20 bank holding companies headquartered in California. ValliCorp is the state's only regional independent bank holding company headquartered in Fresno -- the heart of the Central San Joaquin Valley. The company's common stock is traded on the NASDAQ National Market System under the symbol, VALY.
 VALLICORP HOLDINGS INC.
 Unaudited Consolidated Financial Data
 (Dollars in thousands, except share data)
 Three Months Ended Year Ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Statement of income data:
 Net interest income $6,346 $5,597 $23,587 $21,541
 Provision for possible
 credit losses 356 248 1,299 875
 Other income 999 989 4,183 3,698
 Other expenses 4,756 4,519 18,162 17,517
 Income taxes 916 693 3,414 2,774
 Net income 1,317 1,126 4,895 4,073
 Balance sheet data:
 Total assets $455,116 $433,064
 Total loans 327,427 318,384
 Total deposits 411,415 392,293
 Stockholders' equity 39,156 35,029
 Share data:
 Earnings per share
 Primary $.29 $.25 $1.10 $.94
 Fully diluted .29 .25 1.08 .92
 Book value 9.14 8.25
 Selected financial ratios (Percent)
 Return on average total assets 1.10 1.00
 Return on average equity 13.17 12.21
 Net interest margin 5.95 6.01
 Non-interest expenses to average assets 4.09 4.28
 Allowance for possible credit
 losses to total loans 1.56 1.52
 Net charge-offs to average loans .32 .28
 Nonperforming assets to
 total loans and OREO 1.50 1.78
 Nonperforming assets to total assets 1.09 1.32
 To receive the latest information about ValliCorp via FAX, no cost. 800-PRO-INFO, code 161.
 -0- 1/20/93
 /CONTACT: Wolfgang T.N. Muelleck, executive VP/CFO of ValliCorp, 209-221-4427; Gary Strong or Nick Farina of Financial Relations Board in Chicago, 312-266-7800; Lillian Armstrong of Financial Relations Board in San Francisco, 415-986-1591; or Regina Ryan of Financial Relations Board, New York, 212-661-8030, for ValliCorp/
 (VALY)


CO: ValliCorp ST: California IN: FIN SU: ERN

MS -- LA025 -- 6922 01/20/93 13:19 EST
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