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Show Valley Bank posts positive trend BOUNTIFUL Valley Bank's parent, Valley National Corporation, Corpora-tion, reported net income of $11.0 million, 55 cents per share, for the first quarter 1991. This compares to net income in the previous quarter of $2.0 million, 10 cents per share, and a net income of $607,000, 3 cents per share, for the first quarter 1990. A gain of $5.8 million, 29 cents per share (net of tax), from the sale of securities is included in the first quarter 1991 net income. "The positive trend began with our parent in 1990, and it's good to see it continue stronger into 1991," said Rick Stevenson, Valley Bank's Bountiful branch manager. During the first quarter, the corporation cor-poration began a program to reposition reposi-tion the securities portfolio by disposing of tax-exempt securities. This program has continued into the second quarter and will result in additional ad-ditional gain approximating the amount recognized in the first quarter. "We are encouraged that the first quarter financial performance continues con-tinues the positive trend begun in 1990," said Richard J. Lehmann, chairman of the board. "Earnings as well as credit quality have been headed in the right direction, showing show-ing improvement during the past year. ' Non-accrual loans declined $16 million for the quarter. On March 31, 1991, nonacrual loans were $286.9 million which compared to $303.0 million at the end of the. previous quarter and $366.1 million on March 3 1 , 1 990. The corporation's other real estate owned (OREO) was $193.9 million on March 31, 1991, and compared to $179.2 million at the end of the previous quarter and $169.4 million on March 31, 1990. "The corporation continues to work diligently on managing the level of non-performing assets. During the past 12 months, total non-performing assets declined approximately ap-proximately $55 million, with non- accrual loans declining almost $80 million," said Lehmann. The first quarter provision for credit losses was $19.2 million compared to $15.5 million in the previous quarter and $24.4 million in first quarter 1990. Net charge-off charge-off s for the first quarter 1991 were $30.0 million. The allowance for credit losses at quarter-end was $204.9 million, or 3.22 percent of total loans outstanding and 71.4 percent of non-accrual loans. The first quarter OREO loss provision pro-vision and expense was $9.3 million compared to $20.9 million for the previous quarter and $11.8 million for the first quarter 1990. |