First Virginia increases payout by 3.2%.

FALLS CHURCH, Va. -- First Virginia Banks Inc. said its board has declared a higher dividend, continuing a string of 18 consecutive years.

The $7.1 billion-asset banking company, which has raised the dividend 26 times in the last 13 years, increased the quarterly rate on common stock by one cent, or 3.2%, to 32 cents a share. It will be paid July 18 to shareholders of record on June

The annual payout of $1.28 stands 16 cents, or 14.3%, higher than it was a year ago.

Robert H. Zalokar, chairman and chief executive officer, cited First Virginia's "excellent earnings in the first quarter and strong capital position." He added that loan demand in the first quarter grew at a 13% annualized rate and has continued its strong showing in-the second quarter, particularly in indirect auto lending and home equity.

Bank of New Hampshire Corp., Manchester, also announced a dividend increase Wednesday, by two cents a quarter, to 10 cents. The dividend will be paid June 15 to shareholders of record June 8.

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