AmSouth Reports Earnings for Second Quarter 2006.BIRMINGHAM Birmingham, cities, United States Birmingham (bûr`mĭnghăm') 1 City (1990 pop. 265,968), seat of Jefferson co., N central Ala., in the Jones Valley near the southern end of the Appalachian system; founded and inc. , Ala ALA aminolevulinic acid. Ala alanine. ala (a´lah) pl. a´lae [L.] a winglike process. . -- AmSouth Bancorporation AmSouth Bancorporation was a bank holding company headquartered in Birmingham, Alabama, operated as a subsidiary of Regions Financial Corporation. AmSouth was previously known as First National Bank of Birmingham first organized in 1872. (NYSE NYSE See: New York Stock Exchange : ASO ASO arteriosclerosis obliterans. ASO 1 Administrative services organization, see there 2 Allele-specific–oligonucleotide hybridization 3 Anti-streptolysin O, see there ) today reported earnings for the second quarter ended June June: see month. 30, 2006, of $.53 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to $.52 per diluted share reported for the second quarter of 2005. Net income for the second quarter of 2006 was a record $184.7 million and resulted in a return on average equity of 20.6 percent, a return on average assets of 1.39 percent, and an efficiency ratio of 52.7 percent. "Even as AmSouth prepares to complete its merger with Regions Financial Corporation later this year, we are continuing to deliver solid earnings driven by higher revenue across the board," said Dowd Dowd is a derivation of an ancient surname which was once common in Ireland but is now quite rare. The name Dowd is an Anglicisation of the original Ui Dubhda, through its more common form O'Dowd. Ritter rit·ter n. pl. ritter A knight. [German, from Middle High German riter, from Middle Dutch ridder, from r , AmSouth's chairman, president and chief executive officer. "This quarter was marked by a combination of higher net interest income, higher noninterest revenue, and continued strength in credit quality." Net interest income in the second quarter grew to $402.8 million, or an annual rate of 6.4 percent compared with the second quarter of 2005, and the net interest margin remained stable at 3.39 percent. Contributing to the higher level of net interest income, loan growth continued at a healthy 10.9 percent pace compared to the second quarter of 2005 and was led by growth in Commercial Real Estate, small business lending, and equity lending. Total deposits grew $2.2 billion during the same period. Noninterest revenue, which includes earnings from service charges, trust, investment services, interchange An interchange is a location where two things meet, usually perform some kind of exchange, and possibly go on their ways again. It is most commonly used in four contexts:
Credit quality remained strong, with net charge-offs of $17.2 million or 0.19 percent of average net loans in the second quarter, a decrease of 2 basis points compared with the second quarter of 2005. The provision for loan losses totaled $24.0 million for the current quarter, while the ratio of loan loss allowance to total loans was stable at 0.96 percent at June 30, 2006. Total nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. at June 30, 2006, were $109.4 million, or 0.29 percent of loans net of unearned income Unearned Income Any income that comes from investments and other sources unrelated to employment services. Notes: Examples of unearned income include interest from a savings account, bond interest, tips, alimony, and dividends from stock. , foreclosed properties and repossessions, compared to $100.3 million, or 0.27 percent, in the previous quarter. "We are continuing to make good progress toward completing our merger with Regions in the fourth quarter and realizing the unprecedented opportunity to combine two premier financial institutions with histories of high profitability and shareholder returns into an even stronger organization," Ritter said. For supplemental financial information about the second quarter results, please refer to the Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. filed by AmSouth with the Securities and Exchange Commission on July July: see month. 18, 2006, or visit the Investor Relations Investor relations The process by which the corporation communicates with its investors. Resource Center on AmSouth's web site at www.amsouth.com. About AmSouth AmSouth is a regional bank holding company with $54 billion in assets, more than 680 branch banking offices and more than 1,200 ATMs. AmSouth operates in Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and , Tennessee Tennessee, state, United States Tennessee (tĕn`əsē', tĕn'əsē`), state in the south-central United States. , Alabama Alabama, indigenous people of North America Alabama (ăləbăm`ə), indigenous people of North America whose language belongs to the Muskogean branch of the Hokan-Siouan linguistic stock (see Native American languages). , Mississippi Mississippi, state, United States Mississippi (mĭs'əsĭp`ē), one of the Deep South states of the United States. It is bordered by Alabama (E), the Gulf of Mexico (S), Arkansas and Louisiana, with most of the border formed by , Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. and Georgia Georgia, country, AsiaGeorgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. . AmSouth is a leader among regional banks in the Southeast Southeast or south east is the ordinal direction halfway between south and east. It the opposite of northwest. Southeast or South East can refer to:
Forward Looking Statements Statements in this document that are not purely historical are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. (as defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995), including any statements regarding descriptions of management's plans, objectives or goals for future operations, products or services, and forecasts of its revenues, earnings or other measures of performance. Forward-looking statements are based on current management expectations and, by their nature, are subject to risks and uncertainties. A number of factors - many of which are beyond AmSouth's control - could cause actual conditions, events or results to differ materially from those described in the forward-looking statements. Such factors include, but are not limited to: the execution of AmSouth's strategic initiatives; legislation and regulation; general economic conditions, especially in the Southeast; the performance of the stock and bond markets; changes in interest rates, yield curves and interest rate spread relationships; prepayment speeds Prepayment speed Also called speed, the estimated rate at which mortgagors pay off their loans ahead of schedule, critical in assessing the value of mortgage pass-through securities. within the loan and investment security portfolios; deposit flows; the cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. ; cost of federal deposit insurance premiums; demand for loan products; demand for financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. ; competition, including a continued consolidation in the financial services industry; changes in the quality or composition of AmSouth's loan and investment portfolios including capital market inefficiencies that may affect the marketability Marketability A negotiable security is said to have good marketability if there is an active secondary market in which it can easily be resold. marketability The ease with which an investment may be bought and sold in the secondary market. and valuation of available-for-sale securities; changes in consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. and saving habits; technological changes; adverse changes in the financial performance and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. condition of AmSouth's borrowers which could impact the repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan of such borrowers' loans; changes in accounting and tax principles, policies or guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. and in tax laws; other economic, competitive, governmental and regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. factors affecting AmSouth's operations, products, services and prices; the effects of weather and natural disasters, such as hurricanes; unexpected judicial actions and developments; results of investigations, examinations, and reviews of regulatory and law enforcement authorities; the outcome of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , which is inherently uncertain and depends on the findings of judges and juries; the impact on AmSouth's businesses, as well as on the risks set forth above, of various domestic or international military or terrorist activities or conflicts; and AmSouth's success at managing the risks involved in the foregoing. Forward-looking statements speak only as of the date they are made. AmSouth does not undertake a duty to update forward-looking statements to reflect circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or or events that occur after the date the forward-looking statements are made.
Unaudited
AmSouth Bancorporation
SUMMARY FINANCIAL INFORMATION
($ in thousands, except per share data)
EARNINGS SUMMARY Three Months Ended
-----------------------------------
2006 2005
----------------------- -----------
June 30 March 31 December 31
----------- ----------- -----------
Net interest income $ 402,785 $ 397,720 $ 392,150
Provision for loan and lease
losses 24,000 27,300 20,850
---------- ---------- ----------
Net interest income after
provision 378,785 370,420 371,300
Noninterest revenues 231,381 219,683 216,944
Noninterest expenses 339,555 330,002 320,559
---------- ---------- ----------
Income before income taxes 270,611 260,101 267,685
Income taxes 85,930 79,110 85,552
---------- ---------- ----------
Net income $ 184,681 $ 180,991 $ 182,133
========== ========== ==========
Earnings per common share -
basic $ 0.54 $ 0.52 $ 0.52
Earnings per common share -
diluted 0.53 0.52 0.52
Cash dividends declared per common
share 0.26 0.26 0.26
Weighted-average common shares
outstanding - basic 344,647 345,433 347,201
Weighted-average common shares
outstanding - diluted 349,647 350,743 351,811
End of period common shares
outstanding 343,484 346,590 348,072
KEY PERFORMANCE RATIOS Three Months Ended
-----------------------------------
2006 2005
----------------------- -----------
June 30 March 31 December 31
----------- ----------- -----------
Average shareholders' equity to
average total assets 6.76% 6.79% 6.87%
End of period shareholders' equity
to end of period total assets 6.64 6.84 6.91
Return on average assets
(annualized) 1.39 1.39 1.40
Return on average shareholders'
equity (annualized) 20.59 20.52 20.36
Net interest margin - taxable
equivalent 3.39 3.42 3.37
Efficiency ratio 52.65 52.53 51.71
Loans net of unearned income to
total deposits 100.04 98.97 98.76
Book value per common share $ 10.42 $ 10.44 $ 10.44
Tangible book value per common
share 9.56 9.58 9.59
Three Months Ended Percent
EARNINGS SUMMARY ------------------------- Change
2005 Versus
------------------------- Prior
September 30 June 30 Year
------------ ------------ -------
Net interest income $ 374,733 $ 378,643 6.4%
Provision for loan and lease losses 34,800 17,700 35.6%
------------ ------------
Net interest income after provision 339,933 360,943 4.9%
Noninterest revenues 259,649 223,151 3.7%
Noninterest expenses 336,905 314,942 7.8%
------------ ------------
Income before income taxes 262,677 269,152 0.5%
Income taxes 82,349 84,553 1.6%
------------ ------------
Net income $ 180,328 $ 184,599 0.0%
============ ============
Earnings per common share - basic $ 0.52 $ 0.52 3.8%
Earnings per common share - diluted 0.51 0.52 1.9%
Cash dividends declared per common
share 0.25 0.25 4.0%
Weighted-average common shares
outstanding - basic 349,346 352,054
Weighted-average common shares
outstanding - diluted 354,654 357,026
End of period common shares
outstanding 348,562 352,349
KEY PERFORMANCE RATIOS Three Months Ended
-------------------------
2005
-------------------------
September 30 June 30
------------ ------------
Average shareholders' equity to
average total assets 7.06% 7.03%
End of period shareholders' equity
to end of period total assets 7.00 7.20
Return on average assets
(annualized) 1.41 1.47
Return on average shareholders'
equity (annualized) 20.02 20.92
Net interest margin - taxable
equivalent 3.31 3.40
Efficiency ratio 52.22 51.41
Loans net of unearned income to
total deposits 96.23 94.96
Book value per common share $ 10.26 $ 10.33
Tangible book value per common share 9.41 9.48
Percent
EARNINGS SUMMARY YTD Change
------------------------- Versus
2006 2005 Prior
June 30 June 30 Year
------------ ------------ -------
Net interest income $ 800,505 $ 758,391 5.6%
Provision for loan and lease losses 51,300 38,300 33.9%
------------ ------------
Net interest income after provision 749,205 720,091 4.0%
Noninterest revenues 451,064 438,587 2.8%
Noninterest expenses 669,557 634,459 5.5%
------------ ------------
Income before income taxes 530,712 524,219 1.2%
Income taxes 165,040 160,975 2.5%
------------ ------------
Net income $ 365,672 $ 363,244 0.7%
============ ============
Earnings per common share - basic $ 1.06 $ 1.03 2.9%
Earnings per common share - diluted 1.04 1.01 3.0%
Cash dividends declared per common
share 0.52 0.50 4.0%
Weighted-average common shares
outstanding - basic 345,038 353,170
Weighted-average common shares
outstanding - diluted 350,192 357,914
End of period common shares
outstanding 343,484 352,349
KEY PERFORMANCE RATIOS YTD
-------------------------
2006 2005
June 30 June 30
------------ ------------
Average shareholders' equity to
average total assets 6.77% 7.03%
End of period shareholders' equity
to end of period total assets 6.64 7.20
Return on average assets
(annualized) 1.39 1.46
Return on average shareholders'
equity (annualized) 20.56 20.70
Net interest margin - taxable
equivalent 3.41 3.42
Efficiency ratio 52.59 52.06
Loans net of unearned income to
total deposits 100.04 94.96
Book value per common share $ 10.42 $ 10.33
Tangible book value per common share 9.56 9.48
Unaudited
AmSouth Bancorporation
SUMMARY FINANCIAL INFORMATION
($ in thousands)
BALANCE SHEET INFORMATION Three Months Ended
AVERAGE BALANCES --------------------------------------
2006 2005
------------------------- ------------
June 30 March 31 December 31
------------ ------------ ------------
Loans net of unearned income $37,012,965 $36,344,524 $34,993,552
Total investment securities(a) 11,526,166 11,530,789 11,792,136
Interest-earning assets(a) 48,937,299 48,394,488 47,373,341
Total assets 53,182,063 52,708,707 51,673,254
Noninterest-bearing deposits 7,948,217 7,956,264 7,949,605
Interest-bearing deposits(b) 29,118,925 28,790,160 28,166,662
Total deposits(b) 37,067,142 36,746,424 36,116,267
Shareholders' equity 3,597,112 3,576,492 3,548,566
Three Months Ended Percent
BALANCE SHEET INFORMATION ------------------------- Change
AVERAGE BALANCES 2005 Versus
------------------------- Prior
September 30 June 30 Year
------------ ------------ -------
Loans net of unearned income $33,765,529 $33,361,522 10.9%
Total investment securities(a) 11,969,618 12,374,769 (6.9%)
Interest-earning assets)(a) 46,276,262 46,007,898 6.4%
Total assets 50,635,581 50,341,297 5.6%
Noninterest-bearing deposits 7,565,672 7,454,032 6.6%
Interest-bearing deposits(b) 27,848,894 27,403,908 6.3%
Total deposits(b) 35,414,566 34,857,940 6.3%
Shareholders' equity 3,572,805 3,540,078 1.6%
YTD Percent
BALANCE SHEET INFORMATION ------------------------- Change
AVERAGE BALANCES 2006 2005 Versus
------------ ------------ Prior
June 30 June 30 Year
------------ ------------ -------
Loans net of unearned income $36,680,591 $33,285,458 10.2%
Total investment securities(a) 11,528,465 12,452,245 (7.4%)
Interest-earning assets(a) 48,667,393 45,968,517 5.9%
Total assets 52,946,693 50,318,828 5.2%
Noninterest-bearing deposits 7,952,219 7,340,457 8.3%
Interest-bearing deposits(b) 28,955,450 27,445,215 5.5%
Total deposits(b) 36,907,669 34,785,672 6.1%
Shareholders' equity 3,586,859 3,539,233 1.3%
(a) Excludes adjustment for market valuation on available-for-sale
securities and certain noninterest-earning marketable equity
securities.
(b) Statement 133 valuation adjustments related to time deposits and
other interest-bearing liabilities are included in other
liabilities.
BALANCE SHEET INFORMATION
ENDING BALANCES 2006 2005
------------------------- ------------
June 30 March 31 December 31
------------ ------------ ------------
Loans net of unearned income $37,454,093 $36,737,948 $35,897,939
Total investment securities 11,389,462 11,394,687 11,669,483
Interest-earning assets 49,372,999 48,491,173 48,072,394
Total assets 53,929,814 52,858,162 52,607,110
Noninterest-bearing deposits 8,188,068 8,291,134 8,233,137
Interest-bearing deposits 29,249,432 28,828,184 28,115,245
Total deposits 37,437,500 37,119,318 36,348,382
Shareholders' equity 3,579,061 3,617,742 3,634,577
Percent
BALANCE SHEET INFORMATION Change
ENDING BALANCES 2005 Versus
------------------------- Prior
September 30 June 30 Year
------------ ------------ -------
Loans net of unearned income $34,335,169 $33,533,382 11.7%
Total investment securities 11,855,712 12,245,731 (7.0%)
Interest-earning assets 46,779,359 46,191,133 6.9%
Total assets 51,105,385 50,546,831 6.7%
Noninterest-bearing deposits 8,022,022 7,687,525 6.5%
Interest-bearing deposits 27,658,103 27,626,183 5.9%
Total deposits 35,680,125 35,313,708 6.0%
Shareholders' equity 3,577,455 3,638,225 (1.6%)
Unaudited
AmSouth Bancorporation
SUMMARY FINANCIAL INFORMATION
($ in thousands)
NONPERFORMING ASSETS 2006 2005
------------------- -----------------------------
June March December September June
30 31 31 30 30
--------- --------- --------- --------- ---------
Nonaccrual loans(a) $ 94,892 $ 84,150 $102,981 $ 80,421 $ 70,421
Foreclosed
properties 12,684 14,566 17,667 15,853 17,791
Repossessions 1,833 1,599 2,274 1,869 1,755
--------- --------- --------- --------- ---------
Total nonperforming
assets(a) $109,409 $100,315 $122,922 $ 98,143 $ 89,967
========= ========= ========= ========= =========
Nonperforming assets
to loans net of
unearned income,
foreclosed
properties and
repossessions 0.29% 0.27% 0.34% 0.29% 0.27%
Accruing loans 90
days past due $ 43,542 $ 49,208 $ 54,005 $ 52,404 $ 49,185
========= ========= ========= ========= =========
(a) Exclusive of accruing loans 90 days past due
ALLOWANCE FOR LOAN
AND LEASE LOSSES 2006 2005
------------------- -----------------------------
2nd 1st 4th 3rd 2nd
Quarter Quarter Quarter Quarter Quarter
--------- --------- --------- --------- ---------
Balance at beginning
of period $352,242 $366,695 $384,647 $365,626 $366,836
Loans charged off (25,926) (50,571) (47,314) (23,926) (27,170)
Recoveries of loans
previously charged
off 8,776 8,818 8,512 8,147 9,528
--------- --------- --------- --------- ---------
Net Charge-offs (17,150) (41,753) (38,802) (15,779) (17,642)
Addition to
allowance charged
to expense 24,000 27,300 20,850 34,800 17,700
Reduction of
allowance related
to sold loans 0 0 0 0 (1,268)
--------- --------- --------- --------- ---------
Balance at end of
period $359,092 $352,242 $366,695 $384,647 $365,626
========= ========= ========= ========= =========
Allowance for loan
and lease losses to
loans net of
unearned income 0.96% 0.96% 1.02% 1.12% 1.09%
Net charge-offs to
average loans net
of unearned
income(a) 0.19% 0.47% 0.44% 0.19% 0.21%
Allowance for loan
and lease losses to
nonperforming
loans(b) 378.42% 418.59% 356.08% 478.29% 519.20%
Allowance for loan
and lease losses to
nonperforming
assets(b) 328.21% 351.14% 298.32% 391.93% 406.40%
(a) Annualized
(b) Exclusive of accruing loans 90 days past due
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