The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Wednesday, July 10, 1996              TAG: 9607100333
SECTION: BUSINESS                PAGE: D2   EDITION: FINAL 
SOURCE: BY TOM SHEAN, STAFF WRITER 
                                            LENGTH:   58 lines

FIRST VIRGINIA QUARTER NET INCOME UP

Helped by robust demand for auto and business loans, First Virginia Banks Inc. reported a modest improvement in its net income for the April-through-June quarter.

Meanwhile, two community banks in the region - Bank of Tidewater in Virginia Beach and the parent of Old Point National Bank in Hampton - said Tuesday their second-quarter earnings climbed sharply.

First Virginia, the Falls Church-based parent of First Virginia Bank of Tidewater in Norfolk, said it earned $28.57 million for the recent quarter. That was up 4 percent from $27.57 million in the comparable three months of 1995.

Per-share earnings were 85 cents, up almost 5 percent from 81 cents. The company had fewer common shares outstanding during the recent quarter.

First Virginia's net interest income, the biggest source of earnings, rose almost 6 percent from the 1995 second quarter due partly to the reduced cost of its deposits. However, the company said it has witnessed increases in loan charge-offs and delinquencies. Its loan-loss provision of $5.86 million for the recent quarter was almost three times the amount set aside in the second quarter of 1995.

First Virginia's return on average assets, a measure of bank profitability, was a respectable 1.40 percent.

For the six months through June, net income was up 4 percent to $56.96 million from $54.77 million in the first half of 1995. Earnings per share were $1.69, compared with $1.61.

Bank of Tidewater, which benefited from stronger loan growth and only a slight increase in expenses, reported second-quarter net income of $546,998. That was up 33 percent from $411,129 in the year-earlier period. Earnings per share were 38 cents, compared with 30 cents.

The Virginia Beach bank said its non-interest expenses for the quarter were up only 4 percent, largely because of the reduced cost of federal insurance for deposits.

The community bank's return on average assets climbed to 1.58 percent from 1.39 percent in the 1995 second quarter.

Bank of Tidewater ended the recent quarter with assets of $146.6 million, which was up 15 percent from mid-1995. Its deposits at the end of June totaled $131.45 million, a 16 percent increase.

For the first half, net income totaled to $1.11 million, a 37 percent increase from $808,484 in the January-June period last year. Per-share earnings were 78 cents, up from 59 cents.

The bank recently declared a regular quarterly dividend of 25 cents a share, payable July 16 to shareholders of record July 15.

Meanwhile, Old Point Financial Corp., the parent of Old Point National Bank, said its second-quarter net income jumped 25 percent to $838,000 from $671,000 in the year-earlier period. Earnings per share were 66 cents, up from 53 cents.

Net interest income at the Hampton bank holding company rose 13 percent, while its income from fees and other non-interest sources increased 5 percent.

For the six months through June, Old Point's net income increased 22 percent to $1.72 million from $1.4 million. Earnings per share for the first half were $1.35 from $1.11. by CNB