Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, September 28, 1993 TAG: 9309280064
SECTION: BUSINESS PAGE: B8 EDITION: METRO
SOURCE: MAG POFF STAFF WRITER
DATELINE: LENGTH: Medium
The company's application to the Office of the Comptroller of the Currency is for a national bank charter for its principal subsidiary, Central Fidelity Bank. The change would become effective during the fourth quarter of this year.
Central Fidelity is now chartered as a state bank by the Virginia State Corporation Commission's Bureau of Financial Institutions.
In anticipation of the fragile economy's persisting into 1994, the bank said it has increased its nonperforming assets by a net of $23 million to approximately $135 million, or 1.5 percent of total assets.
In addition, certain real estate-related loans and other real estate owned were written down approximately by $40 million.
The bank said these actions were taken as a result of continued weakness in real estate values, especially in the Northern Virginia area, and to conform with the more rigid application of regulatory standards by the Office of the Comptroller of the Currency.
Of the loans designated as non-performing during the quarter, 60 percent were against property located in the depressed Northern Virginia market.
Central Fidelity also announced sales of $600 million of long-term corporate bonds to reduce its future interest rate risk and to improve liquidity, realizing a gross profit of approximately $50 million.
Central Fidelity Chairman Carroll L. Saine said the "conservative actions" will have only a nominal impact on the company's current income.
He said Central Fidelity anticipates reporting the highest income in the bank's history for the third quarter.
by CNB