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): July 13, 1995
Central Fidelity Banks, Inc.
(Exact name of registrant as specified in its charter)
Virginia 0-8829 54-1091649
(State or other (Commission) (IRS Employer
jurisdiction of File Number) Identification
incorporation) Number)
1021 East Cary Street, Richmond, Virginia 23219
(Address of principal offices)
Registrant's telephone number, including area code: (804) 782-4000
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Item 5. Other Events
On July 13, 1995 the Registrant issued a Press Release announcing the
results of its operations for the three month and six month periods
ended June 30, 1995.
Item 7. Financial Statements and Exhibits
(c) Exhibits
99. Press release, dated July 13, 1995, regarding the results of
its operations for the three month and six month periods ended June 30, 1995.
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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: July 18, 1995
/s/ James F. Campbell
James F. Campbell
Senior Vice President & Controller
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EXHIBIT INDEX
Exhibit 99. Press release, dated July 13, 1995, regarding the results of
its operations for the three month and six month periods ended June 30,
1995.
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Exhibit 99
News Release Central Fidelity
Central Fidelity Banks, Inc. For Release: IMMEDIATELY
Post Office Box 27602
Richmond, Virginia 23261-7602 Information Contact: Susan Lawrence Mistr
Public Relations
Manager
(804) 697-7261
Charles W. Tysinger
Chief Financial
Officer
(804) 697-7038
July 13, 1995
Immediately
CENTRAL FIDELITY REPORTS SECOND QUARTER EARNINGS
Central Fidelity Banks, Inc., (NASDAQ-CFBS) reported net income for the
quarter ended June 30, 1995 of $26,024,000 compared to $29,583,000 for
the same period last year representing a decline of 12.0%. Net income
per share fell 13.2% to $.66 versus $.76 last year.
For the first six months of 1995, net income was $51,744,000, or $1.31
per share, compared to $58,874,000, or $1.51 per share in the first half
of 1994, representing declines of 12.1% and 13.2%, respectively.
The earnings declines are primarily the result of lower net interest
margins compared to last year. Results for the second quarter, however,
indicate that the Company's previous actions to reduce its exposure to
interest rate fluctuations are having a positive effect.
On a tax-equivalent basis, net interest income for the quarter was
$85,754,000 compared to $85,090,000 in the first quarter and $85,573,000
for the same period last year. Average earning assets for the quarter
grew 7.6% to $9,589,061,000. The net interest margin was 3.59% compared
to 3.85% for the second quarter of 1994.
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Total assets at June 30, 1995 were $10,418,141,000, an increase of 8.1%
from June 30, 1994. Total loans at quarter-end grew 11.7% to $5,992,974,000
led by increases in all categories of consumer loans. Total deposits grew
17.8% to $7,900,216,000 and included approximately $450,000,000 of deposits
acquired from Household Bank, f.s.b. in Northern Virginia. Excluding this
transaction, deposits grew 11.1% from the prior year. Shareholders' equity
at June 30, 1995 was $764,144,000, representing an increase of 15.7%
from the previous year. The book value per share of common stock grew
13.8% to $19.20 compared to $16.87 last year.
Central Fidelity's return on average total assets for the quarter was
1.03% versus 1.26% for the comparable 1994 period. Adjusting for SFAS 115
unrealized gains of $263,000 for 1995 and unrealized losses of $58,616,000
for 1994, the Company's return on average shareholders' equity was 13.91%
compared to 17.92% last year.
Noninterest income for the quarter increased modestly to $19,478,000 with
higher insurance commissions and general fee categories accounting for the
gain. Noninterest expense for the quarter rose 9.6% to $61,936,000 with
personnel, other real estate expenses and other miscellaneous costs,
accounting for the increases. For the first six months of 1995
noninterest expenses declined 1.8% from the prior year. For the six
month period, the Company's efficiency ratio was 56.7%.
Nonperforming assets as of June 30, 1995 declined to $76,232,000 or .73%
of total assets compared to $82,926,000 or .82% at March 31, 1995,
$90,294,000 or .90% at December 31, 1994, and $103,502,000 or 1.07% a
year ago. The reduction in nonperforming assets is due to continued
improvement in real estate markets. The allowance for loan losses at
quarter-end was $110,000,000 or 1.84% of total loans.
Net loan charge-offs for the quarter were $3,344,000, or .23% of average
loans on an annualized basis compared to $5,304,000 or .37% for the quarter
ended March 31, 1995 and $2,304,000 or .18% for the second quarter 1994.
For the six months ended June 30, 1995, net charge-offs were $8,648,000 or
.29% of average loans compared to $7,421,000 or .29% of average loans for
1994. An increase in recoveries of previously charged off loans contributed
to the favorable loss experience for the quarter. Nonperforming asset
trends continued to be positive and loan delinquency ratios remain well
within acceptable levels.
The June 9, 1995 acquisition of deposits from the Virginia subsidiary
of Household International, Inc. resulted in the addition of twelve
branches in the Northern Virginia market and broadened the Company's ability
to service and attract new business. This acquisition has provided a new
source of core deposits and will reduce the Company's need for borrowed
funds.
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Commenting on the Company's performance, Lewis N. Miller, Jr., Chairman
and Chief Executive Officer, stated, "We are pleased with our continued
positive trends in loan growth and anticipate that the Federal Reserve's
lowering of short-term interest rates in July will heighten consumer
confidence and generate solid growth during the second half of 1995."
Central Fidelity Banks, Inc. is a Richmond, Virginia based bank holding
company with 244 branch offices throughout the state.
