Valley National Corp., parent company of Utah's Valley Bank and Trust Co., says it has had some preliminary offers to buy its Utah bank but none that it is willing to accept.
Last June, Valley National said it planned to explore the sale of its subsidiaries in Utah and California."Although the corporation continues to negotiate these potential sales, and has received preliminary proposals on the Utah subsidiary, it has become apparent that due to market conditions, it may be difficult to consummate a transaction on terms that would be acceptable to the corporation," said Richard J. Lehmann, chairman.
"Valley National will sell its Utah and California subsidiaries only at a price fair to our shareholders," he said.
Meanwhile, Valley National reported improved earnings for the third quarter ended Sept. 30. The bank holding company said net income was $2.9 million (15 cents per share) for the third quarter, up from a net loss of $72.2 million ($3.65 per share) for the third quarter last year and $2 million more than the second quarter 1990.
Net income for the first nine months of 1990 was $5.5 million (28 cents per share) compared with a net loss of $136.4 million ($6.90 per share) for the same period in 1989.
"Valley National Corp. continues to manage through the weak real estate environment," said Lehmann. "While we realize there is much uncertainty in the market, we are encouraged by the corporation's recent performance indicators."
Total non-performing assets declined $12.7 million to $503.8 million at Sept. 30, down from $516.5 million at the end of the previous quarter and $523.2 million on Sept. 30, 1989.
At quarter's end, Valley National's total assets were $10.3 billion and total deposits were $9.2 billion. Shareholders' equity was $449.4 million, primary capital was $693.7 million and total capital was $825.4 million.