Valley National Corp., parent compay of Valley Utah Bancorp., announced increased earnings for the fourth quarter 1988 of $18.7 million or 95 cents per share and increased earnings for the year of $67.3 million or $3.41 per share.
This compares to the previous year in which losses were reported for fourth quarter 1987 and the full year 1987 of $27.2 million and $44.4 million, respectively, as a result of the corporation making special provisions for credit losses.Noninterest expense was $426.5 million for full year 1988 which compares to $437.9 million for full year 1987 or a decrease of $11.4 million.
Nonperforming assets were $450.2 million at year-end 1988 compared to $294.7 million at year-end 1987, reflecting the continuation of a sluggish real estate market.
New credit losses for 1988 were $103.3 million. The allowance for credit losses at year-end 1988 was $178.8 million (2.29 percent of credit ourtstanding). These results compare to 1987 net credit losses of $154.9 million and an allowance for credit losses of $195.1 million (2.46 percent of total credit outstanding).
"The management and staff at Valley National accomplished much in 1988," said James P. Simmons, chairman. "We brought on a new management team, modified our credit review process, sharpened our business focus and consolidated our distribution network. We well maintain these efforts in 1989 and look forward to continued growth and stability."
At year-end 1988, total assets were $11.8 billion, and total deposits were $9.5 billion. Total shareholder's equity was $618 million, equal to 5.2 percent of total assets.