THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Wednesday, January 18, 1995 TAG: 9501180415
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
SOURCE: BY TOM SHEAN, STAFF WRITER
LENGTH: Medium: 63 lines
Helped by higher earnings from fees and other noninterest income, NationsBank Corp. reported Tuesday that its net income climbed 9 percent in the fourth quarter of 1994 and rose 13 percent for the full year.
Meanwhile, Central Fidelity Banks Inc. said it lost $1.41 million, or 4 cents a share, in the recent quarter after restructuring its securities portfolio and selling low-yielding government securities.
Because of the losses on sales of securities, its net income for the year declined almost 18 percent, the parent of Central Fidelity National Bank said.
Another statewide banking company - First Virginia Banks Inc. - said its fourth-quarter earnings edged up 4 percent but declined 2 percent in 1994 from record net income in 1993.
NationsBank, based in Charlotte, said it earned $405 million, or $1.45 per share fully diluted, in the Dec. 31 quarter. That compared with $373 million, or $1.36 per share fully diluted, in the year-earlier period.
Its major source of earnings - net interest income - was unchanged from the year-earlier quarter at $1.33 billion. However, net income benefited from a 4 percent increase in noninterest income and a smaller quarterly provision for loan losses.
NationsBank also said its revenues from securities trading declined from previous quarters. Because of rising interest rates and heightened volatility in financial markets, ``we just pulled in our horns,'' said Rusty Page, a NationsBank spokesman. ``We just didn't want to take a lot of risks.''
But NationsBank recorded a $28 million loss on the sale of securities during the fourth quarter. That loss, said Page, was offset by a lower tax rate for the quarter.
For the full year, NationsBank reported net income of $1.69 billion, compared with $1.5 billion for 1993. Per-share earnings fully diluted were $6.12, up from $5.78.
Despite the improvement in net income, NationsBank's return on average assets declined slightly for the quarter and the full year. For 1994, the yardstick of banking profitability dropped to 1.02 percent from 1.12 percent in 1993.
At Central Fidelity, the fourth-quarter loss of $1.41 million compared with net income of $25.73 million, or 66 cents, for October through December of 1993.
Central Fidelity, based in Richmond, announced Nov. 30 that it expected sharply lower earnings for the quarter because of losses from selling some of its securities.
For the 12 months, Central Fidelity's net income dropped to $84.86 million from $102.92 million in 1993. Per-share earnings for the year were $2.17, down from $2.66.
First Virginia Banks, parent of First Virginia Bank of Tidewater, said it earned $27.79 million, or 88 cents a share, in the three months ended Dec. 31. In the comparable period of 1993, it earned $27.59 million, or 85 cents a share.
For the full year, First Virginia's net income slipped to $113.22 million from $116.02 million in 1993. Per-share earnings were $3.51, down from $3.57.
First Virginia's return on average assets was down from 1.68 percent in 1993, but it was still an above-average 1.58 percent last year. by CNB