THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Wednesday, August 2, 1995 TAG: 9508020441
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
SOURCE: BY TOM SHEAN, STAFF WRITER
LENGTH: Short : 47 lines
CENIT Bancorp Inc., parent of Norfolk thrift CENIT Bank, completed its acquisition of Princess Anne Bank of Virginia Beach on Tuesday and announced combined second-quarter profits for the two companies.
CENIT said the companies' net income for the three months ended June 30 totaled $883,000, an 18 percent drop from $1.07 million for the comparable quarter in 1994. Their per-share earnings fell to 53 cents from 66 cents.
Separately, Southern National Corp., parent of Commerce Bank in Virginia Beach, said its second-quarter net income was flat because of expenses related to its merger with BB&T Financial Corp. earlier this year.
CENIT attributed the decline in income to a narrower spread between the cost of funds and the yields on the CENIT and Princess Anne Bank loans and investments.
Net interest income - the biggest source of CENIT's and Princess Anne's earnings - fell 3 percent to $4.57 million. Their income for the recent quarter also was hurt by rising expenses and a reduction in earnings from fees and other noninterest sources, CENIT said.
The CENIT-Princess Anne transaction was announced in November and approved by the two companies' shareholders last Wednesday.
Their combined assets totaled $634.2 million, while combined deposits amounted to $443.3 million.
On Tuesday, CENIT declared a quarterly dividend of 10 cents, payable Aug. 17 to shareholders of record July 31.
Meanwhile, Winston-Salem, N.C.-based Southern National said it earned $57.3 million, or 53 cents a share, for the June 30 quarter. That compared with $57.1 million, or 53 cents a share, in the April-through-June period of 1994.
Southern National's net interest income edged up 2 percent in the recent quarter to $184.96 million. However, its noninterest expenses, including personnel and occupancy expenses, climbed 10 percent from the 1994 second quarter.
Southern National attributed part of the increase in its expenses to the cost of integrating the systems of Southern National and BB&T banks. The two companies merged in late February. by CNB