Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, April 10, 1990 TAG: 9004100054
SECTION: BUSINESS PAGE: A7 EDITION: METRO
SOURCE:
DATELINE: LENGTH: Short
Jim Tuell, a broker with J.C. Bradford & Co., said the stock price fell from 17[ to 15] and 455,600 Dominion shares were traded during the day.
The comptroller of the currency is auditing Dominion's real estate portfolio under new and stricter federal guidelines.
The bank announced Friday that it expected a requirement for a significant increase in loan loss reserves that would affect first-quarter and annual earnings.
Tuell said Moody's downgraded Dominion's debenture rating Monday from A2 to A3. Moody's also downgraded Signet Bank, which has a large portfolio of real estate loans.
Dominion is the first bank in Virginia to be audited under the new guidelines. Banks in other states have been forced to transfer large amounts of earnings into reserves.
Warner Dalhouse, board chairman of Dominion, said Monday that he was not surprised by the reaction of some investors in light of what has happened to other banks.
He said he sees the drop in Dominion's stock price as "a tremendous buying opportunity." It is a near certainty that Dominion's quarterly and annual earnings will be impacted, Dalhouse said. - Staff report
by CNB