Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, January 25, 1995 TAG: 9501260054
SECTION: BUSINESS PAGE: B-7 EDITION: METRO
SOURCE: MAG POFF STAFF WRITER
DATELINE: LENGTH: Medium
Signet Banking Corp. reported that it had income last year of $149.8 million or $2.59 a share, including previously announced pre-tax restructuring and contract termination charges totaling $92.2 million. That represented a 14 percent decline from the prior year.
Adjusting for the special charges, however, Signet's earnings grew 20 percent from $174.4 million or $3.06 a share in 1993 to $209.8 million or $3.63 a share in 1994.
The company had fourth-quarter income of $42.9 million or 73 cents a share after restructuring charges of $9.6 million, also a 14 percent decline.
Of the income, Capital One Financial Corp., formerly Signet's credit card division, accounted for $26.5 million for the quarter and $95.3 million for the year.
Signet announced in July its intention to spin off Capital One to Signet shareholders. Signet's board decided Tuesday to transfer the interest in Capital One on Feb. 28 to stockholders of record Feb. 10. These shareholders will receive about one share of Capital One stock for each Signet share.
Chairman Robert Freeman characterized 1994 as a watershed year. During the year, Signet established the separate credit card company and began redesigning its business processes.
He attributed the strong financial performance to "vigorous growth" in consumer loans and to improved credit risk. During the year, he said, nonperforming assets declined 58 percent from $116.5 million to $48.5 million.
Loans grew 26 percent to $7.9 billion. Deposits, on the other hand, shrank 0.2 percent to $7.7 billion. The bank had year-end assets of $12.9 billion, an increase of $1.1 billion from the end of 1993, primarily because of the interim funding of Capital One.
Charter Federal Savings Bank had income of $1.6 million or 32 cents a share in the second quarter of its fiscal year which ended Dec. 31, compared with $2.6 million or 50 cents a share the prior year.
The quarterly results included sale of the Danville branch office for a gain of about $2.4 million. At the same time, the bank added $2.4 million to its provision for loan losses because rising interest rates could affect the loan portfolio.
For the first half, the Bristol-based thrift reported income of $3.7 million or 72 cents a share compared with $4.9 million or $1.20 a share for the same period the prior year. The $4.9 included a one-time gain of about $1 million because of an accounting change.
The board increased the dividend by 33 percent to 10 cents a share. It will be payable Feb. 17 to stockholders of record Feb. 6.
by CNB