<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 22, 1996
VICTORIA BANKSHARES, INC.
(Exact name of registrant as specified in charter)
Texas 0-8037 74-1756447
(State or other jurisdiction (Commission (IRS Employer
of incorporation File Number) Identification No.)
One O'Connor Plaza
Victoria, Texas 77901
(Address of principal executive offices)
Registrant's telephone number, including area code: (512) 573-9432
<PAGE> 2
Item 5. Other Events.
On January 22, 1996, Victoria Bankshares, Inc. (the "Company")
announced certain financial information for the year ended December 31, 1995.
Details are contained in the press release attached as Exhibit I.
Item 7. Exhibits
99.1 - Attached hereto as Exhibit I is a copy of the press release
relating to this matter, which is incorporated herein.
<PAGE> 3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
VICTORIA BANKSHARES, INC.
Date: January 30, 1996 By: /s/ GREGORY SPRAWKA
---------------------- -------------------------------
Gregory Sprawka
Executive Vice President,
Chief Financial Officer and
Secretary-Treasurer
<PAGE> 1
EXHIBIT 99.1
[LOGO] -------------------------------------------------------------
VICTORIA EARNINGS REPORT
BANKSHARES, INC. December 31, 1995
Victoria Bankshares, Inc. and Subsidiaries
-------------------------------------------------------------
Release Date: January 22, 1996 - 4:00 p.m.
For Additional Investor Information, Contact:
Gregory Sprawka, Chief Financial Officer, 512/574-5227
VICTORIA BANKSHARES, INC.
ANNOUNCES YEAR-END EARNINGS
AND SPECIAL DIVIDEND ----------
(Victoria, Texas) Victoria Bankshares, Inc., reported net income of
$15,142,000 or $1.83 per share for the year ended December 31, 1995. This
represents a decrease of 10.7% from the $16,952,000 or $2.05 per share reported
for 1994. Net income for the fourth quarter was $3,760,000 or $.46 per share
versus $4,278,000 or $.52 per share reported for the same period last year.
Charles R. Hrdlicka, chairman of the board and chief executive officer,
noted, "Even though net income remained below 1994 levels during the fourth
quarter, we continue to see positive trends in our net interest income due to
growth in both loans and deposits. The increase in noninterest income results
from both our acquisition of Cattlemen's State Bank in Austin and an 11%
increase in trust revenue. Noninterest expense also increased as a result of
the Cattlemen's acquisition and one-time expenses related to consulting studies
and our pending merger.
"The Board of Directors has declared a year-end dividend of $.25 per share,
which includes a $.09 per share special dividend and a $.16 per share quarterly
dividend. The dividend is payable February 20, 1996, to shareholders of record
February 5, 1996.
"We continue to be very excited about our pending merger with Norwest
Corporation. Our shareholders will recognize full value for our franchise and
our employees will be enabled to better serve our customers and communities.
The merger application has been filed with the Federal Reserve, and the
Proxy/Registration Statement is in progress. Everything appears on track for an
early second quarter closing. A special shareholders meeting will be scheduled
at a later date."
The Company reported total assets of $1,962,994,000; total deposits of
$1,661,833,000; and total stockholders' equity of $190,309,000 at December 31,
1995. The equity-to-asset ratio at December 31, 1995, of 9.69% is
substantially above regulatory requirements. Nonperforming assets declined at
a 13.79% annualized rate even after acquisitions and represent only 0.51% of
total assets. The allowance for loan losses remains strong at 125.19% of
nonperforming loans and represents 1.48% of total loans, net of unearned
discount. Trust assets under management total $1,118,656,000 as of December
31, 1995.
The Company's principal subsidiary, Victoria Bank & Trust, operates 42
branches in 33 Texas communities as of December 31, 1995.
VICTORIA BANKSHARES, INC. . FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------
(In Thousands Except Per Share Amounts) (Unaudited)
Dec. 31, Dec. 31,
1995 1994
--------- ---------
<S> <C> <C>
EARNINGS (Twelve Months Ending):
Net Income $ 15,142 $ 16,952
Income Per Share $ 1.83 $ 2.05
Return on Average Assets 0.82% 0.93%
Return on Average Equity 8.15% 9.71%
Net Interest Margin 4.15% 4.16%
BALANCE SHEET DATA (Period End):
Total Assets $1,962,994 $1,814,410
Total Loans, Net of Unearned Discount 713,645 598,076
Total Nonperforming Assets 10,093 11,708
Total Deposits 1,661,833 1,526,743
Total Stockholders' Equity 190,309 179,230
Equity to Asset Ratio 9.69% 9.88%
Total Risk-Based Capital Ratio 16.26% 18.58%
Book Value Per Share $ 22.89 $ 21.68
Shares Outstanding 8,314,143 8,268,895
- -----------------------------------------------------------------------------
</TABLE>
VICTORIA BANKSHARES, INC. STOCK IS TRADED ON
THE NASDAQ MARKET UNDER THE SYMBOL VICT.
<PAGE> 2
VICTORIA BANKSHARES, INC. . CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
(In Thousands) (Unaudited) Dec. 31, Dec. 31,
1995 1994
----------- -----------
<S> <C> <C>
ASSETS
Cash and Due From Banks................................... $ 141,086 $ 118,713
Interest-Bearing Deposits with Banks...................... 150 379
Investment Securities Held to Maturity.................... 671,584 766,621
Investment Securities Available for Sale.................. 153,113 121,477
Trading Accounts.......................................... 0 166
Federal Funds Sold & Other Short-Term Investments......... 188,710 121,087
Loans:
Total Loans, Net of Unearned Discount............. 713,645 598,076
Reserve for Possible Loan Losses.................. (10,577) (10,024)
---------- ----------
Net Loans....................................... 703,068 588,052
Premises and Equipment, Net............................... 45,892 44,259
Goodwill & Other Intangible Assets, Net................... 32,136 26,118
Other Assets.............................................. 27,255 27,538
---------- ----------
TOTAL ASSETS...................................... $1,962,994 $1,814,410
========== ==========
LIABILITIES & STOCKHOLDERS' EQUITY
Deposits:
Demand............................................ $ 398,586 $ 375,829
Interest-Bearing Demand........................... 640,022 644,037
Time.............................................. 623,225 506,877
---------- ----------
Total Deposits.................................. 1,661,833 1,526,743
Federal Funds Purchased and Other Short-Term Borrowings... 94,181 96,812
Other Liabilities......................................... 16,671 9,905
Long-Term Debt............................................ 0 1,720
---------- ----------
Total Liabilities................................. 1,772,685 1,635,180
Total Stockholders' Equity................................ 190,309 179,230
---------- ----------
Total Liabilities & Stockholders' Equity.................. $1,962,994 $1,814,410
========== ==========
</TABLE>
VICTORIA BANKSHARES, INC. . CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
(In Thousands Except Per Share Amounts) (Unaudited) Quarter Ended Twelve Months Ended
December 31, December 31,
---------------------- ------------------------
1995 1994 1995 1994
------- ------- -------- --------
<S> <C> <C> <C> <C>
INTEREST INCOME ON:
Loans.................................................. $16,924 $13,858 $ 60,734 $ 52,829
Investment Securities.................................. 12,336 11,880 48,102 45,667
Federal Funds Sold & Other Short-Term Investments...... 3,416 1,730 10,005 6,526
------- ------- -------- --------
TOTAL INTEREST INCOME.......................... 32,676 27,468 118,841 105,022
------- ------- -------- --------
INTEREST EXPENSE ON:
Interest-Bearing Transactional Accounts................ 3,962 4,161 15,891 15,536
Time Deposits.......................................... 8,572 5,344 30,442 18,667
Federal Funds Purchased and Short-Term Borrowings...... 1,618 1,204 5,024 4,183
Long-Term Debt......................................... 0 28 47 66
------- ------- -------- --------
TOTAL INTEREST EXPENSE......................... 14,152 10,737 51,404 38,452
------- ------- -------- --------
NET INTEREST INCOME.................................... 18,524 16,731 67,437 66,570
Provision for Loan Losses...................... 100 0 165 15
NONINTEREST INCOME:
Service Charges and Other Fees......................... 4,282 4,024 16,202 15,393
Trust Services Income.................................. 1,833 1,651 6,908 5,556
Data Processing Income................................. 579 787 2,745 3,201
Securities Gains (Losses).............................. (16) (446) 57 (796)
Other Operating Income................................. 959 948 3,717 4,169
------- ------- -------- --------
TOTAL NONINTEREST INCOME....................... 7,637 6,964 29,629 27,523
------- ------- -------- --------
NONINTEREST EXPENSE:
Salaries and Employee Benefits......................... 9,924 8,574 37,353 33,930
Net Occupancy Expense.................................. 1,957 1,852 7,407 7,197
Equipment Rental, Depreciation & Maintenance........... 1,443 1,286 5,286 5,072
Other Operating Expense................................ 7,059 5,747 24,162 22,175
------- ------- -------- --------
TOTAL NONINTEREST EXPENSE...................... 20,383 17,459 74,208 68,374
------- ------- -------- --------
INCOME BEFORE INCOME TAXES............................. 5,678 6,236 22,693 25,704
Federal Income Taxes........................... 1,918 1,958 7,551 8,752
------- ------- -------- --------
NET INCOME............................................. $ 3,760 $ 4,278 $ 15,142 $ 16,952
======= ======= ======== ========
Earnings Per Share..................................... $ 0.46 $ 0.52 $ 1.83 $ 2.05
======= ======= ======== ========
</TABLE>
