THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Thursday, February 23, 1995 TAG: 9502230288
SECTION: BUSINESS PAGE: D3 EDITION: FINAL
SOURCE: BY TOM SHEAN, STAFF WRITER
LENGTH: Medium: 54 lines
Princess Anne Bank reported a 3 percent drop in net income for the quarter ended Dec. 31 despite an improvement in net interest income and a sharply lower provision for loan losses.
For all of 1994, the Virginia Beach community bank said its net income edged up 2 percent to $861,000 from $842,000 in 1993.
Per-share earnings for 1994 slipped to 85 cents from 86 cents the previous year. The bank had slightly more shares outstanding in 1994 than in 1993.
Princess Anne, organized in 1985, announced in November that it had agreed to be acquired by CENIT Bancorp Inc., the Norfolk thrift holding company. The merger agreement, which still must be approved by Princess Anne shareholders and by regulators, calls for an exchange of 0.336 CENIT shares for each of Princess Anne's 1.03 million shares.
The transaction, which is scheduled to close by the end of June, has a value of about $8.40 per Princess Anne share, or about $8.7 million.
For the October-December quarter, Princess Anne reported net income of $195,000, which was down from $201,000 in the comparable period of 1993.
Per-share earnings dropped to 19 cents from 20 cents in the year-earlier quarter.
Princess Anne's net interest income - the difference between its cost of funds and what it earned on loans and investments - climbed 14 percent in the fourth quarter to $969,000, while its noninterest income rose 13 percent to $162,000.
The bank's quarterly results also benefited from a significantly smaller provision for loan losses, which declined 78 percent to $45,000 from $207,000 in the 1993 fourth quarter.
However, Princess Anne's noninterest expenses climbed 21 percent from the year-earlier quarter to $821,000. The bank said its results for the latest quarter included $52,000 of expenses related to its pending merger.
Its return on average assets for the Dec. 31 quarter amounted to 1.01 percent, slightly below the 1.03 percent return in the fourth quarter of 1993.
For the 12 months through December, Princess Anne's net income benefited from an 8 percent increase in net interest income, which totaled $3.64 million in 1994. Its 1994 earnings also were helped by a 72 percent increase in fees and other noninterest income, which amounted to $755,000 last year.
However, the bank's noninterest expenses in 1994 climbed 20 percent to $3.01 million.
Princess Anne's loans at year-end were up 7 percent from Dec. 31, 1993, while its average assets during 1994 rose 9 percent to $76.3 million from $69.82 million the previous year. by CNB