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AMSOUTH POSTS SIXTH CONSECUTIVE QUARTER OF RECORD NET EARNINGS & EARNINGS PER SHARE

    BIRMINGHAM, Ala., July 12 /PRNewswire/ -- AmSouth Bancorporation posted its sixth consecutive quarter of record earnings with second quarter 1993 net income of $35.0 million or $.80 per common share.
    Second quarter results compare to $33.6 million, or $.79 per common share earned in the first quarter of 1993, and to $24.8 million, or $.62 per share, earned in last year's second quarter.  Net income increased 41.3 percent compared to last year's second quarter, while earnings per share increased 29.0 percent.
    On a year-to-date basis, earnings through the second quarter of 1993 totaled $68.6 million, or $1.59 per share, compared to $48.7 million or $1.22 per share through last year's second quarter.  Earnings year-to- date have increased 40.6 percent, while earnings per share have increased 30.3 percent compared to the first two quarters of 1992.
    The corporation reported a return on average assets for the second quarter of 1993 of 1.29 percent, while return on average equity was 15.27 percent.
    AmSouth Chairman and Chief Executive Officer John W. Woods attributes AmSouth's continued earnings momentum to several factors, including loan growth, reduced credit costs, good noninterest expense control and significant improvement in nonperforming assets.
    "Today's earnings performance is the result of the successful execution of our long-term strategies, and the results of those strategies to date support our belief that we can sustain these higher levels of performance in the future," Woods said.
     An important part of AmSouth's long-term strategy is to make "smart" acquisitions in economically attractive markets.  AmSouth defines "smart" acquisitions as those that enhance shareholder value by conforming to the company's criteria in terms of loan quality, culture, anticipated future performance, management, critical market share and earnings improvement potential.
    Through the second quarter of 1993, AmSouth has announced definitive agreements to acquire five Florida banks and one bank in northwest Georgia.  Pending acquisitions include, in Florida, The First National Bank of Clearwater, First Gulf Bank in St. Petersburg, Orange Bank headquartered in Orlando, Mid-State Federal Savings Bank headquartered in Ocala and FloridaBank in Jacksonville.  In addition, AmSouth has signed a definitive agreement to acquire The Georgia State Bank of Rome.
    These pending acquisitions represent approximately $2.0 billion in assets and 67 banking offices, 63 of which are in rapidly growing areas of Florida.
    AmSouth Bancorporation, headquartered in Birmingham, operates banking offices in four states and mortgage banking offices in eight southeastern states.  The company's assets at June 30, 1993, totaled $11.1 billion, a 19.4 percent increase compared to June 30, 1992, assets.
    The corporation's lead bank, AmSouth Bank N.A., operates 150 banking offices throughout Alabama.  Other bank affiliates include AmSouth Bank of Florida with 25 banking offices in Northwest Florida,  AmSouth Bank of Tennessee with 20 offices, AmSouth Bank of Georgia, and AmSouth Bank of Walker County, Alabama.  Bank-related affiliates include AmSouth Mortgage Company, Inc., with 17 offices in eight states, AmSouth Investment Services, Inc., and AmSouth Leasing Corporation.
                    Performance Analysis
    AmSouth's gross interest margin for the second quarter of 1993 increased $2.8 million, or 2.6 percent, compared to the first quarter of 1993. The gross interest spread decreased 21 basis points to 4.52 percent compared to the prior quarter.
    The allowance for loan losses totaled $103.9 million at June 30, 1993, and equaled 1.51 percent of loans net of unearned income. The allowance for loan losses was essentially equal to the first quarter level.  Nonperforming assets decreased $19.1 million, or 20.4 percent, compared to the first quarter.  At June 30, 1993, nonperforming assets were 1.08 percent of loans net of unearned income plus foreclosed properties and repossessions compared to 1.40 percent at March 31, 1993.
    Noninterest revenues decreased $1.7 million compared to the prior quarter primarily due to a $1.5 million decrease in gains on securities held for sale.  Noninterest expenses decreased $1.8 million primarily due to decreases of $1.9 million in foreclosed properties expense and $937,000 in net occupancy expense partially offset by a $1.1 million increase in salaries and employee benefits.
                         AMSOUTH BANCORPORATION
                              (Unaudited)
                 (In thousands except per share data)
                                 3 mos. ended June 30
        EARNINGS SUMMARY          1993        1992  Pct. chg.
    Gross interest margin   $   108,844      92,030     18.3 pct.
    Provision for loan losses     7,585       7,315      3.7
    Net interest margin         101,259      84,715     19.5
    Noninterest revenues         42,113      35,312     19.3
    Noninterest expenses         91,606      85,616      7.0
    Income before income tax     51,766      34,411     50.4
    Applicable income taxes      16,773       9,652     73.8
    Net income                   34,993      24,759     41.3
    Primary earnings per share     0.80        0.62     29.0
    Avg. primary shares outst.   43,746      40,009
    End of period shares outst.  43,778      40,065
                                 6 mos. ended June 30
                                  1993        1992  Pct. chg.
    Gross interest margin       214,883     180,379     19.1 pct.
    Provision for loan losses    14,469      14,168      2.1
    Net interest margin         200,414     166,211     20.6
    Noninterest revenues         85,970      72,310     18.9
    Noninterest expenses        185,013     171,064      8.2
    Income before income tax    101,371      67,457     50.3
    Applicable income taxes      32,815      18,709     75.4
    Net income                   68,556      48,748     40.6
    Primary earnings per share     1.59        1.22     30.3
    Average primary shares outst.43,126      39,910
                             Avg. for 3 mos. ended June 30
        BALANCE SHEET SUMMARY         1993        1992  Pct. chg.
    Loans net of unearned income 6,766,295   5,500,518     23.0 pct.
    Investment securities        2,331,553   2,336,951     (0.2)
    Earning assets              10,020,505   8,273,354     21.1
    Total assets                10,883,583   9,066,253     20.0
    Noninterest-bearing deposits 1,404,598   1,143,230     22.9
    Interest-bearing deposit     6,897,651   6,066,522     13.7
    Total deposits               8,302,249   7,209,752     15.2
    Shareholders' equity           919,293     741,806     23.9
                             Avg. for 6 mos. ended June 30
                                  1993        1992  Pct. chg.
    Loans net of unearned income 6,592,727   5,466,956     20.6 pct.
    Investment securities        2,271,571   2,346,494     (3.2)
    Earning assets               9,746,405   8,272,108     17.8
    Total assets                10,610,319   9,084,726     16.8
    Noninterest-bearing deposits 1,370,023   1,120,350     22.3
    Interest-bearing deposit     6,699,704   6,132,608      9.2
    Total deposits               8,069,727   7,252,958     11.3
    Shareholders' equity           890,705     733,532     21.4
                             Ending Balance June 30
                                 1993        1992  Pct. chg.
    Loans net of unearned income 6,863,834   5,573,897     23.1 pct.
    Investment securities        2,240,493   2,427,932     (7.7)
    Earning assets              10,284,443   8,423,376     22.1
    Total assets                11,062,642   9,266,934     19.4
    Noninterest-bearing deposits 1,420,962   1,203,781     18.0
    Interest-bearing deposit     6,896,853   5,998,483     15.0
    Total deposits               8,317,815   7,202,264     15.5
    Shareholders' equity           930,730     749,202     24.2
                                   1993                    1992
        SELECTED RATIOS          2nd Qtr     1st Qtr     4th Qtr
    Avg. shareholders' equity
     to avg. total assets         8.45 pct.    8.33 pct.   8.32 pct.
    End of period shareholders' equity
     to end of period total       8.41         8.32        8.03
    Tier 1 capital to risk-adjusted
     assets                       9.68 (a)     9.62        9.07
    Total capital to risk-adjusted
     assets                      12.08 (a)    12.06       11.54
    Loans net of unearned income
     to total deposits           82.52        81.82       80.67
    Net income (annualized) to
     avg. total assets            1.29         1.32        1.15
    Net income (annualized) to
     avg. shareholders' equity   15.27        15.80       13.86
    Book value per common share  21.26        20.75       19.48
    Efficiency ratio             59.07        60.54       65.09
    (a) Estimated
        SELECTED RATIOS                3rd Qtr           2nd Qtr
    Avg. shareholders' equity
     to avg. total assets             8.30 pct.          8.18 pct.
    End of period shareholders' equity
     to end of period total           8.13               8.08
    Tier 1 capital to risk-adjusted
     assets                           9.40               9.43
    Total capital to risk-adjusted
     assets                          11.99              12.05
    Loans net of unearned income
     to total deposits               79.35              77.39
    Net income (annualized) to
     avg. total assets                1.14               1.10
    Net income (annualized) to
     avg. shareholders' equity       13.79              13.42
    Book value per common share      19.10              18.70
    Efficiency ratio                 61.20              64.71
                                    6/30/93     6/30/92     Pct. chg.
        LOANS
    Commercial                    2,208,935   2,202,311      0.3 pct.
       Commercial real estate:
    Commercial real estate
     mortgages                      929,433     769,942     20.7
    Real estate construction        311,221     221,818     40.3
    Total commercial real estate  1,240,654     991,760     25.1
       Consumer:
    Residential first mortgages   1,673,275     940,457     77.9
    Other residential mortgages     466,264     437,785      6.5
    Dealer indirect                 561,446     481,217     16.7
    Other consumer                  784,484     590,902     32.8
    Total consumer                3,485,469   2,450,361     42.2
    Total loans                   6,935,058   5,644,432     22.9
                                   1993                    1992
                                   Jun 30      Mar 31      Dec 31
       NONPERFORMING ASSETS
    Nonaccrual loans               48,798      52,635      49,123
    Restructured loans              2,108       1,186         149
    Total nonperforming loans      50,906      53,821      49,272
    Foreclosed properties          23,102      38,766      35,947
    Repossessions                     612       1,177       1,196
    Total nonperforming assets     74,620      93,764      86,415
    Nonperforming assets to loans
     net of unearned income, foreclosed
     properties and repossessions   1.08 pct.   1.40 pct.   1.43 pct.
    Accruing loans 90 days
     past due                      20,332      17,857      16,938
                                              1992
                                      Sept 30     Jun 30
       NONPERFORMING ASSETS
    Nonaccrual loans                   41,029     47,894
    Restructured loans                    149        151
    Total nonperforming loans          41,178     48,045
    Foreclosed properties              53,576     59,876
    Repossessions                       1,383      3,254
    Total nonperforming assets         96,137    111,175
    Nonperforming assets to loans
     net of unearned income, foreclosed
     properties and repossessions        1.66 pct.  1.97 pct.
    Accruing loans 90 days
     past due                          17,905     19,317
                                         1993                1992
       ALLOWANCE FOR LOAN LOSSES    Jun 30      Mar 31      Dec 31
    Balance at beginning of        103,915      89,495      87,002
    Loans charged off                9,495       7,448       9,515
    Recoveries of loans previously
     charged off                     1,916       2,526       2,151
    Net charge-offs                  7,579       4,922       7,364
    Addition to allowance charged
     to expense                      7,585       6,884       9,857
    First Chattanooga allowance at
    date of purchase                     0      12,458           0
    Balance at end of period       103,921     103,915      89,495
    Allowance for loan losses to loans
     net of unearned income           1.51 pct.   1.56 pct.   1.49 pct.
    Net charge-offs to average loans
     net of unearned income           0.45 pct.   0.31 pct.   0.50 pct.
    Allowance for loan losses to
     nonperforming loans            204.14 pct. 193.08 pct. 181.63 pct.
    Allowance for loan losses to
     nonperforming assets           139.27 pct. 110.83 pct. 103.56 pct.
                                                 1992
       ALLOWANCE FOR LOAN LOSSES         Sept 30          Jun 30
    Balance at beginning of               83,487          83,139
    Loans charged off                     14,323           8,492
    Recoveries of loans previously
     charged off                           5,308          1,525
    Net charge-offs                        9,015          6,967
    Addition to allowance charged
     to expense                           12,530          7,315
    First Chattanooga allowance at
    date of purchase                           0              0
    Balance at end of period              87,002         83,487
    Allowance for loan losses to loans
     net of unearned income                 1.51 pct.      1.50  pct.
    Net charge-offs to average loans
     net of unearned income                 0.63 pct.      0.51 pct.
    Allowance for loan losses to
     nonperforming loans                  211.28 pct.    173.77 pct.
    Allowance for loan losses to
     nonperforming assets                  90.50 pct.     75.10 pct.
          CONSOLIDATED AVERAGE DAILY BALANCES, REVENUE AND
        EXPENSE SUMMARY, YIELDS AND RATES-BY QUARTER AND YTD
                      AMSOUTH BANCORPORATION
                           (Unaudited)
                                    Second Quarter Ended June 30
                                                 1993
       (Taxable Equivalent Basis   Average     Revenue/    Yield/
       Dollars in Thousands)       Balance     Expense     Rate Pct.
       ASSETS
       Earning assets:
    Loans net of unearned income 6,766,295     136,509     8.09 pct.
    Investment securities
    Taxable securities           1,959,764      31,892     6.53
    Tax-free securities            371,789       9,998    10.79
    Total investment security    2,331,553      41,890     7.21
    Other earning assets           922,657      10,919     4.75
    Total earning assets        10,020,505     189,318     7.58
    Cash and other assets          967,056
    Less allowance for loan
     losses                        103,978
    Total                       10,883,583
       LIABILITIES AND SHAREHOLDERS' EQUITY
       Interest-bearing liabilities:
    Interest-bearing demand
      deposits                   2,759,023      18,714     2.72
    Savings deposits               692,322       4,779     2.77
    Time deposits                2,852,927      33,004     4.64
    Certificates of deposit
     of $100,000 or more           593,379       6,308     4.26
    Federal funds purchased
     and securities sold under
     agreements to repurchase      922,154       7,194     3.13
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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

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Date:Jul 12, 1993
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