Signet's net income drops 83%

October 17, 1990

Hit by the declining real estate market and a slowing economy, Signet Banking Corp. reported an 83.8 percent drop in third quarter net income.

Signet, the Richmond-based company with major operations in Maryland, had a net income of $4.5 million, or 17 cents a share, compared with $27.8 million, or $1.04 a share, for the 1989 third quarter.

During the first nine months, the company earned $34.6 million, or $1.30 a share, compared with $90.6 million, or $3.33 a share, for the same period a year ago.

"We and most other banks in our region are dealing with the weakest real estate market in years, and trends have not yet turned positive," said Robert M. Freeman, chairman and chief executive officer. "We are fortunate to have a strong capital position and solid core earnings to see us through this stressful period."

As of Sept. 30, non-performing assets totaled $215.7 million, or 3.08 percent of loans and foreclosed properties, the company said. This is an increase of $110.4 million since Sept. 30, 1989.

Total assets as of Sept. 30 were $11.7 billion, down 3 percent from a year ago.

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