Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, April 13, 1995 TAG: 9504130042
SECTION: BUSINESS PAGE: BUSINESS EDITION: METRO
SOURCE: MAG POFF STAFF WRITER
DATELINE: LENGTH: Medium
First Union, a Charlotte, N.C.-based company whose Virginia, Maryland and Washington, D.C., banks have headquarters in Roanoke, said it earned $229.88 million, or $1.32 a share, for the quarter that ended March 31.
That's an increase of about 6 percent over the same period of 1994, when the per-share profit was $1.27 and earnings totaled $216.73 million.
First Union earned $225 million, or $1.28 a share, in the fourth quarter of 1994.
"We are pleased with our financial performance and with the steps we have taken to accelerate our earnings momentum," said Chairman Edward Crutchfield. "Our fundamental trends continue to be on track, and we expect strong growth in revenues through the rest of the year."
The first quarter reflected a 3 percent growth in loans, up $1.7 billion since year-end 1994. First Union also had a 3 percent decrease in expenses.
The bank said it had 13 percent growth in both capital management and mortgage banking income compared with the end of last year.
Loans at the end of March totaled $55.8 billion. Nonperforming assets were $577 million, compared with $558 million at year-end. Charge-offs remained low at 0.31 percent of average loans.
First Union had assets of $77.9 billion.
Crestar Financial, Richmond-based parent of Crestar Bank, had record income of $45.1 million, or $1.18 a share, during the quarter, an 11 percent increase over $40.5 million, or $1.07 a share, in the same period last year.
Chairman Richard Tilghman said the bank "successfully completed three acquisitions during the quarter, maintained excellent credit quality and posted record earnings."
He attributed the earnings to "solid loan growth, an improved net interest margin and stringent control of expenses."
Crestar acquired Independent Bank of Manassas, Jefferson Savings and Loan Association of Warrenton and TideMark Bancorp Inc. of Newport News.
Loans stood at $9.8 billion at the end of March, compared with $9.3 billion at year-end and $8.2 billion at the same point last year.
First-quarter results included securities losses of $2.4 million. Income also was reduced by $1.5 million to reflect costs of closing five branches to improve efficiency of its branch network.
Crestar had $11.1 billion in deposits and $14.4 billion in assets at the end of the quarter.
Central Fidelity Banks reported income of $25.7 million, a decrease of 12.2 percent from $29.3 million for the same period a year ago.
The bank attributed the decline to a slowing economy resulting from interest rate increases over the last year.
At the end of last year, the bank sold securities at a loss because they carried low interest rates.
Chairman Lewis Miller Jr. said the bank is optimistic about positive trends in interest income, overall credit quality and significantly lower levels of nonperforming assets.
He predicted earnings stability and solid growth in the future because of ongoing restructuring of the balance sheet, special emphasis on quality of the loan portfolio and controls over expenses. The company said it was mitigating exposure to the potential of further interest rate increases by repositioning its balance sheet.
Net income per share for the quarter was 65 cents, compared with 75 cents last year, a decline of 13.3 percent.
Assets totaled $10 billion. Loans at the end of March reached $5.9 billion, up 17.7 percent, with strong growth in all consumer loan categories. Total deposits rose 12 percent to $7.3 billion, primarily in the form of certificates of deposit as customers took advantage of higher rates.
by CNB