FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Quarterly Report Under Section 13 or 15 (d)
of the Securities Exchange Act of 1934
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from
_____________________to____________________
For Quarter Ended Commission
file number 0-15729
PREMIER BANKSHARES CORPORATION
(Exact name of registrant as specified in its charter)
VIRGINIA 54-1377250
State or other jurisdiction of
(I. R. S. Employer)
incorporation or organization
Identification No.)
29 College Drive
P. O. Box 1199, Bluefield, VA 24605
(Address of Principal Executive Offices)
(Zip Code)
Registrant's telephone number including area code (703)322-2242
_____________________________________________________________________________
(Former name, former address and former fiscal year, if changed since last
report).
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15 (d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements
for the past 90 days. Yes X . No ___.
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of March 31, 1995.
Common stock, $2 par value - 4,987,802 shares.
INDEX
Page No.
PartI. Financial Information:
Item 1. Financial Statements
Consolidated Balance Sheets -
March 31, 1995 and December 31, 3
1994
Consolidated Statements of Income -
Three Months March 31, 1995 and 4
1994
Consolidated Statements of
Stockholders' Equity - Three Months 5
Ended March 31, 1995 and 1994
Consolidated Statements of Cash Flows
Three Months Ended March 31, 6
1995 and 1994
Notes to Consolidated Financial 7-10
Statements
Supplemental Financial Data (Tables 11-13
I - III)
Item 2. Management's Discussion and
Analysis of Financial 14-15
Condition and Results of Operations
Part II. Other Information:
Item 1. Legal Proceedings 16
Item 2. Changes in Securities 16
Item 3. Defaults Upon Senior Securities 16
Item 4. Submission of Matters to a Vote of 16
Item 5. Security Holders Other Information 16
Item 6. Exhibits and Reports on Form 8-K 16
<PAGE>
<TABLE>
ITEM 1. FINANCIAL INFORMATION:
PREMIER BANKSHARES CORPORATION AND AFFILIATES
CONSOLIDATED BALANCE SHEETS
(In Thousands of Dollars)
<CAPTION>
March 31, December 31,
1995 1994
<S> <C> <C>
ASSETS:
Cash and Due From Banks 19197 19475
Interest-bearing Deposits in Banks
Securities Held to Maturity (Approximate
Market Value $87,208 in 1995,
$85,153 in 1994) 88727 88766
Securities Available for Sale (Amortized
Cost $139,591 in 1995, $151,980 in 1994) 133580 142682
Federal Funds Sold 16953 17240
Loans, Net of Unearned Income of $5,870
in 1995, $6,554 in 1994 and Allowance
for Loan Losses of $5,998 in 1995 and
$5,844 in 1994 364843 360860
Bank Premises and Equipment 14305 14259
Other Assets 12338 11911
TOTAL ASSETS 649943 655193
LIABILITIES:
Deposits:
Demand 65006 63784
Interest-bearing Demand 65034 67518
Savings 145846 160323
Large Denomination Certificates
of Deposit 49001 44978
Other Time 237314 232807
TOTAL DEPOSITS 562201 569410
Short-term Debt 17569 21377
Other Liabilities 4454 2213
Long-term Debt 1800 1900
TOTAL LIABILITIES 586024 594900
SHAREHOLDERS' EQUITY:
Capital Stock-Common-$2 Par
10,000,000 Authorized; 4,987,802
Shares Issued in 1995 and 1994 9975 9975
Surplus 22029 22029
Undivided Profits 36004 34501
Net Unrealized Loss on Securities (4089) (6212)
TOTAL STOCKHOLDERS' EQUITY 63919 60293
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY 649943 655193
<FN>
Notes to financial statements are an integral part of these
statements.
</TABLE>
<PAGE>
<TABLE>
PREMIER BANKSHARES CORPORATION AND AFFILIATES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands of Dollars)
<CAPTION>
Three Months Ended
March 31,
1995 1994
<S> <C> <C>
INTEREST INCOME:
Interest and Fees on Loans 8733 7900
Federal Funds Sold 229 297
Money Market Deposits 11
Interest on Investments Held to
Maturity, Taxable 29 335
Interest on Investments Held to
Maturity, Nontaxable 882 801
Interest on Securities Held for
Sale-Taxable 2249 2231
Interest on Securities Held for
Sale, Nontaxable 77 123
Total Interest Income 12199 11698
INTEREST EXPENSE:
Demand Deposits 462 440
Savings Deposits 1234 1557
Large Denomination Certificates
of Deposit 590 529
Other Time Deposits 2750 2359
Short-term Debt 221 114
Long-term Debt 37
Total Interest Expense 5294 4999
Net Interest Income 6905 6699
ADDITION TO ALLOWANCE FOR LOAN
AND LEASE LOSSES 188 92
Net Interest Income After
Addition to Allowance for
Loan and Lease Losses 6717 6607
OTHER INCOME:
Service Charges on Deposit
Accounts 509 447
Trust Department Income 39 35
Other Service Charges,
Commissions and Fees 386 361
Other Operating Income 117 80
Security Gains (40) 672
Total Other Income 1011 1595
OTHER EXPENSES:
Salaries 1922 1840
Employee Benefits 485 531
Occupancy Expenses 225 227
Furniture and Equipment Expenses 299 290
Other Operating Expenses 1887 1736
Total Other Expense 4818 4624
Income Before Income Taxes 2910 3578
Applicable Income Taxes 708 963
Net Income 2202 2615
NET INCOME PER SHARE .44 .52
CASH DIVIDENDS PER SHARE .14 .11
<FN>
The notes to financial statements are an integral part of these statements.
</TABLE>
<PAGE>
<TABLE>
PREMIER BANKSHARES CORPORATION AND AFFILIATES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(In Thousands of Dollars)
Three Months
Ended
March 31,
1995 1994
<S> <C> <C>
Balance at Beginning of Year 60293 59769
Net Income 2202 2615
Cash Dividends Declared (698) (529)
Change in Valuation Allowance for
Securities 2122 (1839)
Balance at End of Period 63919 60016
<FN>
The notes to financial statements are an integral part of these
statements.
</TABLE>
<PAGE>
<TABLE>
PREMIER BANKSHARES CORPORATION AND AFFILIATES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands of Dollars)
<CAPTION>
Three Months
Ended
March 31,
1995 1994
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income 2202 2615
Adjustments to Reconcile Net Income to Cash
Provided by Operating Activities:
Depreciation and Amortization of Premises
and Equipment 241 231
Provision for Loan Losses 188 92
Amortization of:
Goodwill and Intangibles 72 61
Premiums and Accretion of Discounts,Net 115 127
Security Gains 40 (672)
Increase in Other Assets (497) (426)
Increase in Other Liabilities 2241 686
Net Cash Provided by Operating
Activities 4602 2714
CASH FLOWS FROM INVESTING ACTIVITIES:
Net (Increase) Decrease in Temporary Investments 287 15277
Sale of Securities Available for Sale 5567 5041
Maturities of Securities Available for Sale 3687 13799
Purchases of Securities Available for Sale (1485) (33066)
Maturities of Securities Held to Maturity 4334 3035
Purchase of Securities Held to Maturity (1195) (17871)
Net Increase in Customer Loans (3971) (3231)
Premises and Equipment Expenditures (289) (143)
Sales of Premises and Equipment
Net Cash Used in Investing Activities 6935 (17159)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net Increase in Demand Deposits,
Now and Savings Accounts (15739) 12479
Net Increase in Time Deposits 8530 409
Payments on Long-term Debt (100)
Net Increase (Decrease) in Short-term Debt (3808) 4850
Cash Dividends Paid (698) (529)
Net Cash Provided by Financing Activities (11815) 17209
Net Increase in Cash and Due from Banks (278) 2764
CASH AND DUE FROM BANKS:
Beginning 19475 15057
Ending 19197 17821
Supplemental Disclosures of Cash Flow Information:
Cash Payments for Interest Paid:
To Depositors 4598 4275
On Federal Funds Purchased and Securities Sold
Under Agreement to Repurchase 224 113
Income Taxes 225
<FN>
The notes to financial statements are an integral part of these statements.
</TABLE>
<PAGE>
PREMIER BANKSHARES CORPORATION AND AFFILIATES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. General
The consolidated statements include the accounts of Premier and
its affiliates. All significant intercompany balances and
transactions have been eliminated. In the opinion of management,
the accompanying unaudited consolidated financial statements
contain all adjustments (consisting of only normal recurring
accruals) necessary to present fairly the financial positions as
of March 31, 1995, and December 31, 1994, and the results of
operations and cash flows for the three months ended March 31,
1995 and 1994.
The results of operations for the three months ended March 31,
1995, are not necessarily indicative of the results to be
expected for the full year.
2. Investment Securities
Carrying amounts and fair values of securities being held to
maturity are summarized as follows:
<TABLE>
March 31, 1995
Gross Gross Estimated
Amortized Unrealized Unrealized Market
Cost Gains Losses Value
(In Thousands of Dollars)
<CAPTION>
<S> <C> <C> <C> <C>
U.S. Government Agencies and
Corporations 6506 1 397 6110
Obligations of States and
Political Subdivisions 70392 563 846 70109
Corporate Securities
Mortgage-backed Securities 11829 840 10989
88727 564 2083 87208
</TABLE>
<TABLE>
December 31, 1994
Gross Gross Estimated
Amortized Unrealized Unrealized Market
Cost Gains Losses Value
(In Thousands of Dollars)
<CAPTION>
<S> <C> <C> <C> <C>
U.S. Government Agencies and 6003 613 5390
Corporations
Obligations of States and 70712 798 2698 68812
Political Subdivisions
Corporate Securities 449 23 426
Mortgage-backed Securities 11602 8 1085 10525
88766 806 4419 85153
</TABLE>
<PAGE>
2. Investment Securities (continued)
Amortized cost and carrying amount (estimated fair value) of
securities available for sale are summarized as follows:
<TABLE>
March 31, 1995
Gross Gross Estimated
Amortized Unrealized Unrealized Market
Cost Gains Losses Value
(In Thousands of Dollars)
<CAPTION>
<S> <C> <C> <C> <C>
U.S. Treasury Securities 21058 50 151 20957
U.S. Government Agencies and
Corporations 26568 832 25736
Obligations of States and
Political Subdivisions 5176 14 13 5177
Corporate Securities 1098 39 1059
Mortgage-backed Securities 80726 4804 75922
Marketable Equity 1511 101 1410
Other Debt Securities 3433 1 115 3319
139570 65 6055 133580
</TABLE>
<TABLE>
December 31, 1994
Gross Gross Estimated
Amortized Unrealized Unrealized Market
Cost Gains Losses Value
(In Thousands of Dollars)
<CAPTION>
<S> <C> <C> <C> <C>
U.S. Treasury Securities 23040 29 472 22597
U.S. Government Agencies and
Corporations 39844 2 2852 36994
Obligations of States and
Political Subdivisions 7285 47 137 7195
Corporate Securities 3885 27 146 3766
Mortgage-backed Securities 74643 8 5519 69132
Marketable Equity 1596 222 1374
Other Debt Securities 1687 63 1624
151980 113 9411 142682
</TABLE>
<TABLE>
Three Months Ended
March 31,
1995 1994
(In Thousands of Dollars)
<CAPTION>
<S> <C> <C>
Gross proceeds from sales of
Securities 5567 5041
Gross Gains on Sale of
Securities 62 672
Gross Losses on Sale of
Securities 102
Net Securities Gains (Losses) (40) 672
</TABLE>
<PAGE>
<TABLE>
PREMIER BANKSHARES CORPORATION AND AFFILIATES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
3. Loans
The following is a summary of loans outstanding at the end of
the periods indicated:
March 31, December 31,
1995 1994
(In Thousands of Dollars)
<CAPTION>
<S> <C> <C>
Commercial, Financial, and
Agricultural 134179 116506
Real Estate - Construction 8894 8654
Real Estate - Mortgage 137924 151972
Loans to Individuals 94360 94520
Others 1354 1606
376711 373258
Less Unearned Income (5870) (6554)
370841 366704
Less Allowance for Loan and Lease Losses (5998) (5844)
364843 360860
</TABLE>
<TABLE>
The following schedule summarizes the changes in the allowance
for loan and lease losses:
March 31, March 31, December 31,
1995 1994 1994
(In Thousands of Dollars)
<CAPTION>
<S> <C> <C> <C>
Balance, Beginning 5844 5227 5226
Provision Charged Against
Income 188 92 1144
Recoveries 134 170 446
Loans Charged Off (168) (117) (972)
Balance, Ending 5998 5372 5844
</TABLE>
<TABLE>
Nonperforming assets consist of the following:
March 31, December 31,
1995 1994
(In Thousands of Dollars)
<CAPTION>
<S> <C> <C>
Nonaccrual Loans 2322 3018
Restructured Loans 925 1172
Nonperforming Loans 3247 4190
Foreclosed Properties 1036 677
Nonperforming Assets 4283 4867
<FN>
Total loans past due 90 days or more and still accruing were
$565 on March 31, 1995 and $711 on December 31, 1994.
</TABLE>
<PAGE>
<TABLE>
PREMIER BANKSHARES CORPORATION AND AFFILIATES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
4. Short-term Debt
Short-term debt consists of the following:
March 31, December 31,
1995 1994
(In Thousands of Dollars)
<CAPTION>
<S> <C> <C>
Federal Funds Purchased and Securities
Sold Under Agreements to Repurchase 17569 19877
Other Short-term Borrowing 1500
Total Short-term Debt 17569 21377
</TABLE>
5. Long-term Debt
<TABLE>
March 31, December 31,
1995 1994
(In Thousands of Dollars)
<CAPTION>
<S> <C> <C>
Note Dated 9/16/94 @ 7.60%
Quarterly Installments - $100,000 1800 1900
Total Long-term Debt 1800 1900
</TABLE>
6. Earnings Per Share
Earnings per share are computed on the weighted average common shares
outstanding of 4,987,802 for both the three months ended March 31, 1995
and March 31, 1994, respectively.
7. Capital Requirements
A comparison of the Company's capital as of March 31, 1995 with the
minimum requirements is presented below.
<TABLE>
Minimum
Actual Requirements
<S> <C> <C>
Tier I Risk-based Capital 15.37 % 4.00 %
Total Risk-based Capital 16.76 % 8.00 %
Leverage Ratio 10.24 % 4.00 %
</TABLE>
<PAGE>
<TABLE>
TABLE I
Consolidated Selected Financial Data
(Amounts in thousands, except per share data)
<CAPTION>
1995
First
Quarter
<S> <C>
Interest Income 12199
Interest Expense 5294
Net Interest Income 6905
Provision for Loan Losses 188
Net Income 2202
Per Share Data:
Net Income .44
Cash Dividends Paid .14
Total Average Stockholders' Equity 59938
Total Average Assets 653074
Ratios:
Average Stockholders' Equity to Total Average Assets 9.18
Return on Average Equity 14.70
Return on Average Assets 1.35
</TABLE>
<TABLE>
1994
Fourth Third Second First
Quarter Quarter Quarter Quarter
<S> <C> <C> <C> <C>
Interest Income 12232 12059 11930 11671
Interest Expense 5210 5042 5056 4999
Net Interest Income 7022 7017 6874 6672
Provision for Loan Losses 441 456 155 92
Net Income 1974 2197 2255 2580
Per Share Data:
Net Income .40 .44 .45 .52
Cash Dividends Paid .14 .12 .11 .11
Total Average Stockholders'
Equity 60583 61215 59664 59349
Total Average Assets 655553 656902 666663 652270
Ratios:
Average Stockholders' Equity
to Total Average Assets 9.24 9.32 8.95 9.10
Return on Average Equity 13.03 14.36 15.12 17.39
Return on Average Assets 1.20 1.34 1.35 1.58
</TABLE>
<PAGE>
TABLE II
DISTRIBUTION OF ASSETS, LIABILITIES, STOCKHOLDERS' EQUITY,
INTEREST RATES AND INTEREST DIFFERENTIAL
The following schedule presents the condensed consolidated average balance
sheets and the average rates earned and paid by Premier and its affiliates
on a fully taxable equivalent basis assuming a 34% tax rate for the three
months ended March 31, 1995 and 1994. Nonaccruing loans are included in
the total loans.
<TABLE>
1995 1994
Average Interest Yield/ Average Interest Yield/
Balance And Fees Rate Balance And Fees Rate
(In Thousands of Dollars) (In Thousands of Dollars)
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Assets:
Interest-earning Assets:
Loans and Leases 369497 8740 9.46 338580 7900 9.33
Taxable Investment
Securities 153160 2278 5.95 178760 2566 5.74
Nontaxable Investment
Securities 71903 1453 8.08 68369 1400 8.19
Interest-bearing Deposits
with Other Banks 420 11 10.48
Federal Funds Sold and
Securities Purchased Under
Agreements to Resell 15804 229 5.80 31405 297 3.78
Total Interest-earning
Assets 610364 12700 8.32 617534 12174 7.89
Noninterest-earning Assets:
Cash and Noninterest-
bearing Deposits 22389 17535
Premises and Equipment,Net 14304 11113
Other Assets 11925 11395
Less Allowance for Loan
and Lease Losses (5908) (5307)
Total Assets 653074 652270
Liabilities and Stockholders' Equity
Interest-bearing Liabilities:
Demand Deposits 66342 462 2.79 62488 440 2.82
Savings Deposits 152251 1234 3.24 182287 1557 3.42
Large Denomination
Certificates of Deposit 49355 590 4.78 48678 529 4.35
Other Time Deposits 235871 2750 4.66 218933 2359 4.31
Short-term Borrowings 18645 221 4.74 17862 114 2.55
Long-term Debt 1977 37 7.49
Total Interest-bearing
Liabilities: 524441 5294 4.04 530248 4999 3.77
Noninterest-bearing Liabilities:
Demand Deposits 65230 57433
Other Liabilities 3465 5239
Stockholders' Equity 59938 59350
Total Liabilities and
Stockholders' Equity 653074 652270
Net Interest Differential 4.28 4.12
Net Interest Earnings 7406 7175
Net Yield on Interest-earning
Assets 4.85 4.65
</TABLE>
<PAGE>
<TABLE>
TABLE III
A summary of the increases and decreases of the items included in the
Consolidated Statements of Income are shown below:
Net Increases (Decreases)
Three Months Ended
March 31,
1995 and 1994
(In Thousands of Dollars)
<CAPTION>
Amount Percent
<S> <C> <C>
INTEREST INCOME:
Interest and Fees on Loans 833 10.54
Federal Funds Sold (68) (22.90)
Money Market Deposits (11) (100.00)
Interest on Investments Held to
Maturity, Taxable (306) (91.34)
Interest on Investments Held to
Maturity Nontaxable 81 10.11
Interest on Securities Held for
Sale, Taxable 18 .81
Interest on Securities Held for
Sale, Nontaxable (46) (37.40)
Total Interest Income 501 4.28
INTEREST EXPENSE:
Demand Deposits 22 5.00
Savings Deposits (323) (20.75)
Large Denomination Certificates
of Deposits 61 11.53
Other Time Deposits 391 16.57
Short-term Debt 107 93.86
Long-term Debt 37 (100.00)
Total Interest Expense 295 5.90
Net Interest Income 206 3.08
ADDITION TO ALLOWANCE FOR LOAN
LEASE LOSSES 96 104.35
Net Interest Income After
Addition to Allowance for
Loan and Lease Losses 110 1.66
OTHER INCOME:
Service Charges on Deposit
Accounts 62 13.87
Trust Department Income 4 11.43
Other Service Charges,
Commissions and Fees 25 6.93
Other Operating Income 37 46.25
Security Gains (Losses) (712) (105.95)
Total Other Income (584) (36.61)
OTHER EXPENSES:
Salaries 82 4.46
Employees Benefits (46) (8.66)
Occupancy Expenses (2) (.88)
Furniture and Equipment Expenses 9 3.10
Other Operating Expenses 151 8.70
Total Other Expense 194 4.20
Income Before Income Taxes (668) (18.67)
Applicable Income Taxes (255) (26.48)
NET INCOME (413) (15.79)
</TABLE>
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION:
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
OVERVIEW
Premier's non-bank subsidiary, Premier Bank Services
Corporation and Professional Financial Services of Virginia, Inc.
remain inactive. Premier formed a new non-bank trust subsidiary, Premier
Trust Company in January 1995 which is now operating. In addition, Premier
acquired the former Dickenson-Buchanan Bank located in Clintwood, Virginia
at year-end 1994 using the pooling-of-interest method of accounting. Prior
year financial data reflects this purchase.
EARNINGS PERFORMANCE
Net income for the first three months of 1995 was $2,202,000, a
$413,000 or 15.79% decrease over the $2,615,000 earned for the same
period in 1994 due largely to a decrease in security gains of $712,000.
One affiliate bank during the first quarter of 1994 disposed of
bonds backed by the failed Executive Life Insurance Company,
which were in default and had previously been written down, adding
approximately $513,000 in security gains; $339,000, net of the tax effect.
On a per share basis, net income for the first three months of 1995 decreased
to $0.44 compared to $0.52 for the same period in 1994, with 4,987,802 average
shares outstanding for the three months ending March 31, 1995 and 1994,
respectively.
NET INTEREST INCOME
Net interest income, before provision for loan losses for the three
months ended March 31, 1995, was $6,905,000, a $206,000, or a 3.08%
increase from $6,699,000 recorded for the same period of 1994.
The net interest differential for this period (the difference between the
tax-equivalent yield on interest-bearing assets and the rate paid
on interest-bearing liabilities)increased 16 basis points to 4.29%.
The tax-equivalent yield on earning assets increased from 7.89% in 1994
to 8.32%, or 43 basis in 1995 while the rate paid on interest-bearing
liabilities increased only 27 basis points to 4.04%.
The net yield (fully taxable equivalent) on earning assets
increased 20 basis points in 1995 to 4.85% compared to 4.65% in 1994.
Yields on loans, taxable investment securities and fed funds sold increased 13,
21, and 202 basis points, respectively, while the yield on non-taxable
securities decreased by a slight 11 basis points.
Rates paid on demand deposits and savings decreased 3 and 18 basis points,
respectively, while rates on large denomination and other time deposit rates
increased 43, and 35 basis points, respectively. The rate paid on
short-term borrowings increased 219 basis points with long-term debt in
1995 with an average rate of 7.49% that did not exist in 1994.
OTHER INCOME AND EXPENSES
Total other income decreased $584,000 or 36.61% to $1,011,000 due
largely to net security losses during in 1995 of $40,000 compared to
net security gains of $672,000 in 1994. As mentioned previously, the
majority of the 1994 security gains was from a $513,000 gain by one
affiliate bank from the sale of bonds which were in default and had been
previously written down. Service charges on deposit accounts increased by
$62,000, or 13.87%. Other operating income increased $37,000 partially due
to approximately $16,000 in gains on sales of foreclosed properties.
Other expenses increased $194,000 or 4.20% over March 31, 1994.
Salaries increased 4.46%, or $82,000 and employee benefits decreased $46,000
or 8.66%. The most significant changes in other operating expenses were an
increase in data processing fees of $70,000 and an incrase in bank franchise tax
of $40,000 along with a substantial decrease of $172,000 in legal fees
following the settlement of a suit which had been pending and accrued for in
1994. Occupancy and furniture and fixtures costs remained at basically the
same level. Less significant increases and decreases account for the
difference.
INVESTMENTS, LOANS, AND DEPOSITS
Net loans increased $3,983,000 or 1.10%, investments decreased
$9,941,000 or 3.95%, fed funds sold decreased $287,000 or 1.66%,
with an decrease in total assets of $5,250,000 or 0.80% over December 31,
1994. Demand deposits, large denomination certificates and other time deposit
increased 1.92%, 8.94%, and 1.94%, respectively. Interest-bearing demand and
savings decreased by 3.68% and 9.03%, respectively, from December 1994.
Short-term debt which includes fed funds purchased, repurchase agreements
and short-term borrowings decreased $3,808,000 over year end 1994.
ALLOWANCE FOR LOAN AND LEASE LOSSES
The allowance for loan and lease losses on March 31, 1995, was
$5,998,000 compared to $5,844,000 at December 31, 1994, and $5,372,000
at March 31, 1994. The ratio of allowance for loan and lease losses
to total loans net of unearned income was 1.62% at March 31, 1995.
Charge-offs were $168,000 for the first three months of 1995 compared to
$117,000 for the same period in 1994. Recoveries of $134,000 were
booked in the first three months of 1995; $170,000 in 1994. Management
believes the allowance is adequate at the March 31, 1995 level,
after making provisions during the year of $188,000.
CAPITAL RESOURCES
Total stockholders equity or capital amounted to $63,919,000 at
March 31, 1995. The leverage ratio at March 31, 1995 was 10.24%.
LIQUIDITY AND INTEREST SENSITIVITY
Almost the entire deposit base is made up of core deposits with
only 8.72% of total deposits composed of certificates of deposit of
$100,000 and over. At March 31, 1995, federal funds and investment
securities maturing within one year amounted to $33,049,000, or 5.88% of
total deposits. In addition, $74,700,000 of investment securities or
13.29% of deposits, mature within the 1-5 year range.
The policy of Premier is to maintain the relationship between rate-
sensitive assets and rate-sensitive liabilities which will best maximize
future profit levels, given existing expectations of
interest rate movements.
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings - None
Item 2. Changes in Securities - None
Item 3. Defaults Upon Senior Securities - None
Item 4. Submission of Matters to a Vote of Security Holders - None
Item 5. Other Information - None
Item 6. Exhibits and reports on Form 8-K
a) Exhibits - None
b) Form 8-K - None
<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 thereunto duly authorized.
PREMIER BANKSHARES CORPORATION
Date: March 15, 1995 BY /s/ James R.Wheeling
James R. Wheeling,President
Date: March 15, 1995 BY /s/ Ellen Simpson
Ellen Simpson, Secretary
(Accounting Officer)
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