ROANOKE TIMES 

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SATURDAY, March 14, 1992                   TAG: 9203140072
SECTION: BUSINESS                    PAGE: A-8   EDITION: METRO 
SOURCE: MAG POFF STAFF WRITER
DATELINE:                                 LENGTH: Medium

REGULATORS MAKE DEAL WITH DOMINION

Dominion Bank plans to enter into an agreement with federal regulators on loan and credit policies that could require the bank to maintain higher capital ratios than those generally required and likely will force the bank to receive government approval before it pays dividends, the bank said Friday in a release.

Dominion's agreement with the Comptroller of the Currency will be outlined in a memorandum of understanding that will not be released before Tuesday's regularly scheduled meeting of Dominion's board, said Glenn Bowman, senior vice president and treasurer of the bank.

The Roanoke-based bank said the agreement grew out of a May 1991 federal examination of the bank's loans.

Similar agreements have been made between federal regulators and other banks including Sovran Bank, before its merger this year with NCNB into NationsBank, and Signet Bank. Like Dominion, the other Virginia banks suffered losses from the collapse of the commercial real estate market in Northern Virginia.

Henry J. Coffey Jr., banking analyst with J.C. Bradford & Co. in Nashville, said the proposed agreement "shouldn't have any impact at all" on Dominion's stock and dividend level, currently 11 cents a quarter.

Dominion's earnings have covered its dividend in the last few quarters. The bank also meets all generally required financial standards of capital strength.

The bank said it anticipates that the memorandum will require the bank to continue efforts to clear up problems with troubled loans, credit administration, loan policies, allowance for loan losses and foreclosures.

Dominion's announcement said these programs "have already been substantially developed and implemented."

The agreement affects the Virginia Bank of Dominion Bankshares Corp. 


 by CNB