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VIRGINIA FIRST SAVINGS BANK ANNOUNCES EARNINGS

 PETERSBURG, Va., April 21 /PRNewswire/ -- Virginia First Savings Bank, F.S.B. (NASDAQ: VFSB), today announced net earnings of $1,265,000 or $.46 per share on a fully diluted basis for its third fiscal quarter ended March 31, 1993, an increase of 134.0 percent from the $541,000 or $.21 per share for the quarter ended March 31, 1992. Net earnings for the first nine months of the fiscal year ending June 30, 1993 were $3,518,000 or $1.29 per share, an increase of 121.6 percent from the $1,587,000 or $.61 per share for the same period in the previous fiscal year.
 William A. Patton, chairman of the board of directors, noted that "the net earnings for the third fiscal quarter represented a 0.99 percent return on average total assets and a 16.45 percent return on average equity, while earnings for the first three quarters of the fiscal year represented a 0.89 percent return on average total assets and a 15.39 percent return on average equity."
 Both total interest income and total interest expense during the quarter ended March 31, 1993 were lower than for the same period in the previous fiscal year, due to the generally lower yields and rates prevailing in the marketplace. However, the net interest income of $4,489,000 for the quarter was 27.0 percent higher than the $3,535,000 for the same period in the previous fiscal year. According to Patton, "the improved net interest margin performance is due to the continuing maturity and repricing of retail deposits and other interest-bearing liabilities together with attractive yields provided through Virginia First's construction and retail lending divisions."
 Virginia First continued its practice of selling its fixed rate conventional and fixed rate government-guaranteed mortgage production in the secondary market, while retaining the right to service most of the conventional loans. Patton added that "in response to market conditions during the third fiscal quarter, Virginia First reduced its exposure to runoff of adjustable rate mortgages by selling $25.2 million of adjustables from its mortgage loan portfolio and recorded a pre-tax gain of $798,000. Virginia First retained the servicing for those adjustable rate loans."
 During the third fiscal quarter, Virginia First expanded its market territory by opening mortgage production offices in the Virginia communities of Blacksburg and Charlottesville, increasing to 13 the number of mortgage production offices operated by Virginia First in the states of Virginia and Maryland.
 The net amount of mortgage loans serviced for others increased by $77.8 million to $664.4 million during the third fiscal quarter. For the nine month period ended March 31, 1993, the net amount of mortgage loan servicing for others increased by $244.7 million, notwithstanding the sale of approximately $45.5 million of mortgage servicing rights, at a pre-tax gain of $623,236 during the first fiscal quarter. Virginia First serviced $419.8 million of mortgages for others as of June 30, 1992 and $286.0 million as of March 31, 1992.
 Management continued the posture of providing reserves where appropriate to mitigate the potential impact of future credit or market losses. Additional reserved or writedowns totalling $1,126,000 during the third fiscal quarter and $2,985,000 for the nine month period ended March 31, 1993 were taken to reduce the carrying value of assets affected by the substantial level of mortgage prepayments occurring in the present interest rate environment or as additions to general loss reserves.
 Total assets were $542,602,000 at March 31, 1993, compared to $561,973,000 on the same date last year. Deposit liabilities were $459,654,000, compared to $482,691,000 one year ago.
 At March 31, 1993 stockholders' equity was $31,622,000 or $11.39 per share on a fully diluted basis. Virginia First exceeds all of the regulatory capital requirements, as shown in the chart.
 Virginia First presently operates 22 full service retail branches in central and western Virginia and 13 mortgage production offices in the states of Virginia and Maryland.
 Virginia First Savings Bank
 Selected Financial Data
 (Dollars in Thousands Except Per Share Data)
 Three Months Ended Nine Months Ended
 March 31, March 31,
 1993 1992 1993 1992
 Operating data:
 Total Interest Income $9,707 $10,297 $30,176 $31,139
 Total Interest Expense 5,218 6,762 16,720 21,357
 Net Interest Income 4,489 3,535 13,456 9,782
 Provision for Loan Losses 226 363 756 1,507
 Other Income (Loss) 2,175 1,485 6,763 3,514
 Other Expenses 5,173 4,117 15,945 10,202
 Net Earnings 1,265 540 3,518 1,587
 Earnings Per Share .46 .21 1.29 .61
 Selected ratios (Percent):
 Earnings on Average Assets 0.99 0.43 0.89 0.43
 Earnings on Average Equity 16.45 7.68 15.39 7.82
 Average Equity/Average Assets 6.02 5.66 5.80 5.53
 March 31, June 30, March 31,
 1993 1992 1992
 Balance Sheet Data:
 Total Assets $542,603 $518,020 $561,973
 Loans Receivable 430,727 415,515 431,290
 Mortgage-Backed Securities 31,520 16,604 18,099
 Deposits 459,654 451,674 482,691
 Borrowed Funds 44,951 33,022 40,629
 Stockholders' Equity 31,622 28,103 27,570
 Book Value Per Share 11.39 10.71 10.51
 Other Data:
 Full Service Branch Offices 22 22 22
 Mortgage Loan Offices 13 11 10
 Mortgage Loans Serviced for Others $664,475 $419,792 $286,003
 Capital Ratios at March 31, 1993
 OTS Requirement Actual as of March 31, 1993
 As percentage Dollar As Percentage Dollar Excess Over
 of Assets Amount of Assets Amount Requirement
 Tangible
 Capital 1.50pct. $ 8,089 5.25pct. $28,287 $20,198
 Core Capital 3.00pct. 16,202 5.82pct. 31,163 14,961
 Risk-Based
 Capital 8.00pct. 28,684 9.81pct. 35,168 6,484
 -0- 4/21/93
 /CONTACT: Paul W. Walk, Jr., Senior Vice President, Virginia First Savings Bank, 804-733-0333, or 804-748-5847/
 (VFSB)


CO: Virginia First Savings Bank ST: Virginia IN: FIN SU: ERN

MM-SB -- CH007 -- 8636 04/21/93 10:38 EDT
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Date:Apr 21, 1993
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