Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, June 13, 1990 TAG: 9006130074
SECTION: BUSINESS PAGE: A-5 EDITION: METRO
SOURCE: MAG POFF BUSINESS WRITER
DATELINE: LENGTH: Medium
Joseph B. Keesee, president of Shawsville Bankcorp, said the proposed merger will be presented to shareholders as soon as the Securities and Exchange Commission completes its review of disclosure documents.
Keesee said the merger will provide the Bank of Shawsville with sufficient capital to meet federal regulatory requirements.
Bank of Shawsville was the only Virginia institution to appear on a recent list of "troubled" banks compiled by USA Today.
The bank, which has two offices in Shawsville and Salem, charged off about $500,000 in loans last year.
Keesee has said the bank tightened its lending practices and is operating in the black this year. Its capital rose by $75,000 in the past few months, he said.
Premier is a bank holding company made up of four Southwest Virginia banks. At the end of last year, it had assets of $329.8 million and total capital of more than $36 million, up 12 percent and 9 percent respectively over 1988.
Premier's return on assets last year was 1.3 percent, compared to an industry goal of 1 percent and a national average of 0.47 percent.
A recent study of 15 Virginia bank holding companies by Scott & Stringfellow of Richmond ranked Premier strongest in all ratios designed to measure capital strength.
Premier's current affiliates are Tazewell National Bank, Bank of Speedwell, Peoples Bank Inc. and Richlands National Bank. They operate 18 offices in Tazewell, Pulaski, Wythe, Russell and Scott counties.
Shawsville and Premier first announced merger plans in July 1989, but the agreement was terminated last fall when Shawsville increased its loan-loss reserve and reported a loss for the first three quarters.
Under the amended proposal announced last December, Shawsville shareholders will receive eight-tenths of a share of Premier for each share of Shawsville. Virginia banking authorities have approved the merger.
by CNB