ROANOKE TIMES 
                      Copyright (c) 1996, Roanoke Times

DATE: Thursday, January 18, 1996             TAG: 9601180063
SECTION: BUSINESS                 PAGE: B-7  EDITION: METRO 

REPORTED EARNINGS

First Virginia Banks

First Virginia Banks Inc. of Falls Church said Wednesday it had a 1 percent decline in earnings for the fourth quarter and for the year.

The bank reported yearly income of $111.6 million, compared with $113.2 million a year ago. Per-share earnings dropped 7 percent, from $3.51 in 1994 to $3.28 last year.

For the quarter, the bank earned $27.6 million, compared with $27.8 million for the same period a year earlier. Per-share earnings dropped 8 percent, from 88 cents to 81 cents.

The bank attributed the decline to a 15-basis-point drop in the net interest margin, caused by slower growth in interest rates on assets than interest on deposits.

Chairman Barry J. Fitzpatrick also cited a slowdown in business in the Washington and Baltimore areas caused by cutbacks in government spending and budget furloughs. But he said the credit quality of the consumer loan portfolio remained excellent and it was significantly better than industry averages.

The bank had loans of $5 billion and deposits of $7 billion at the end of December. Assets amounted to $8.2 billion.

- Staff report

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