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) November 30,1994
____________Central Fidelity Banks, Inc.________
(Exact name of registrant as specified in charter)
Virginia _ 54-1091649____
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
_________1021 East Cary Street, Richmond, Virginia 23219_
(Address of principal executive offices) (Zip Code)
___________________(804) 782-4000___________________
(Registrant's telephone number, including area code)
<PAGE>
Item 5. Other Events.
The Issuer announced today that in an effort to restructure its
securities portfolio it expects its principal subsidiary Central
Fidelity National Bank to recognize security losses of approximately $30
million pre-tax in the fourth quarter of 1994. The losses will result
from the anticipated sale of approximately $500 million of fixed rate
investment securities having an average yield of 6.06% and an average
maturity of 4 years.
Since the beginning of this year, the Federal Reserve has increased the
federal funds rate six times for a total of 2.50%. Accordingly, this
action is being taken to further reduce the Issuer's exposure to
continued increases in interest rates to levels higher than previously
anticipated.
The proceeds of the securities sale will be used to reduce short-term
borrowings by $100 million and to reinvest the balance in adjustable
rate investment securities. The net result of these transactions will be
to reduce 1994 consolidated earnings per share by approximately $.50. It
is anticipated that these measures should have a positive effect on the
Issuer's earnings in 1995.
This action will reduce the Issuer's cumulative 1-year liability
sensitivity position to approximately 11% of earning assets at year-end.
Scheduled maturities of remaining securities will further reduce the
nterest sensitive gap to approximately 6% of earning assets by year end
1995.
<PAGE>
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.
Central Fidelity Banks, Inc.
(Registrant)
Date: November 30, 1994 /s/ James F. Campbell
James F. Campbell
Senior Vice President & Controller
<PAGE>
Exhibit 28
News Release Central Fidelity
Central Fidelity Banks, Inc. For Release: Immediately
Post Office Box 27602
Richmond, Virginia 23261-7602 Information Contact: Charles W. Tysinger
Chief financial Officer
(804) 697-7038
CENTRAL FIDELITY REPORTS
SECURITIES PORTFOLIO RESTRUCTURING
November 30, 1994
Central Fidelity Banks, Inc. (NASDAQ-CFBS) announced today that in an
effort to restructure its securities portfolio it expects to recognize
security losses of approximately $30 million pre-tax in the fourth
quarter of 1994. The losses will result from the anticipated sale of
approximately $500 million of fixed rate investment securities having
an average yield of 6.06% and an average maturity of 4 years.
Since the beginning of this year, the Federal Reserve has increased
the federal funds rate six times for a total of 2.50%. Accordingly,
this action is being taken to further reduce the Company's exposure
to continued increases in interest rates to levels higher than
previously anticipated.
The proceeds of the securities sale will be used to reduce short-term
borrowings by $100 million and to reinvest the balance in adjustable
rate investment securities. The net result of these transactions
will be to reduce 1994 earnings per share by approximately $.50.
It is anticipated that these measures should have a positive effect
on the Company's earnings in 1995.
This action will reduce the Company's cumulative 1-year liability
sensitivity position to approximately 11% of earning assets at
year-end. Scheduled maturities of remaining securities will further
reduce the interest sensitive gap to approximately 6% of earning
assets by year end 1995.
Lewis N. Miller, Jr., Chief Executive Officer stated, "These actions
are prudent in consideration of the interest rate environment we
have experienced this year and are consistent with Central
Fidelity's emphasis upon the quality of our balance sheet and
earnings capacity."
Central Fidelity Banks, Inc. is a Richmond, Virginia based bank
holding company with 230 branch offices throughout the state.
