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

DATE: FRIDAY, July 14, 1995                   TAG: 9507150023
SECTION: BUSINESS                    PAGE: A-9   EDITION: METRO  
SOURCE: MAG POFF STAFF WRITER
DATELINE:                                 LENGTH: Medium

STRONG LOAN GROWTH BOOSTS CRESTAR'S EARNINGS REPORT

Of two Virginia banks reporting quarterly earnings Thursday, Crestar Financial Corp. said it had record income, while Central Fidelity Banks Inc. registered a decline.

Crestar said it earned $47.4 million or $1.24 a share for the second quarter, up 11 percent from $42.6 million or $1.12 a share earned in the second quarter of 1994.

For the first six months, income was $93 million, an increase of 12 percent from $83.1 million in the same period last year. Per-share income rose from $2.19 to $2.44.

Chairman Richard G. Tilghman said record earnings were driven by strong loan growth among both consumers and commercial customers, coupled with a strong net interest margin. In addition, he said, the bank kept tight control of operating expenses and maintained excellent credit quality.

Average loans for the second quarter were $9.7 billion, up 3 percent from the first quarter and up 18 percent from the second quarter of last year.

Nonperforming assets were $83.1 million at quarter-end or 0.85 percent of loans and foreclosed properties. Nonperforming assets at June 30 comprised 0.57 percent of total assets compared to 0.66 percent at March 31 and 0.71 percent a year ago.

Crestar had total assets of $14.6 billion and total deposits of $11.1 billion.

Central Fidelity reported income for the quarter of $26 million compared to $29.6 million for the same period last year, a decline of 12 percent. Income per share fell 13.2 percent from 76 cents last year to 66 cents last quarter.

For the first six months, income was $51.7 million or $1.31 per share compared to $58.9 percent or $1.51 a share last year, declines of 12.1 percent and 13.2 percent.

The bank said the earnings declines are primarily the result of lower net interest margins compared to last year. But the company said the results indicated that its previous actions to reduce its exposure to interest rate fluctuations "are having a positive effect."

Total assets were $10.4 billion, an increase of 8.1 percent from a year ago.

Total loans at quarter-end grew 11.7 percent to nearly $6 billion, led by increases in all categories of consumer loans. Deposits grew 17.8 percent to $7.9 billion, including about $450 million acquired from Household Bank in Northern Virginia.

Nonperforming assets declined to $76 million or 0.73 percent of total assets compared to the prior quarter's figures or $82.9 million or 0.82 percent.

by CNB