Valley National Corp., parent company of Valley Utah Bancorporation, reported a net loss of $72.2 million ($3.65 per share) for the third quarter and a net loss of $136.4 million for the first nine months of 1989.
This compares with net income of $18.7 million (95 cents per share) for the third quarter 1988 and net income of $48.6 million ($2.46 per share) for the first nine months of 1988."The Arizona real estate market continues to be depressed and there is still uncertainty as to when values will recover," said James P. Simmons, chairman. "We have taken the appropriate action to deal with the potential weakness in our loan portfolio identified by our ongoing review."
In a related action, the corporation announced the suspension of its regular quarterly dividend. In recent quarters, the corporation had paid dividends of 36 cents per share.
"The decisions to increase the loan loss reserve and suspend payment of dividends are both prudent and in the best long-term interest of the shareholders," said Simmons. "We believe that the suspension will allow us to utilize our resources more appropriately, until this difficult time is past."
At Sept. 30, 1989, total assets of the corporation were $10.4 billion, and total deposits were $9.1 billion. Shareholders' equity is $460.7 million, primary capital is $756.3 million and total capital is $907.2 millon at Sept. 30, 1989. The corresponding ratios of shareholders' equity, primary capital and total capital to assets are 4.43 percent, 7.07 percent and 8.48 percent.