AmSouth Reports Record First Quarter 2005 Earnings.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 record earnings for the first quarter ended March 31, 2005, of $.50 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 $.45 per diluted share reported for the first quarter of 2004. Net income for the first quarter of 2005 was $178.6 million versus $160.1 million for the same period in 2004, an increase of 11.6 percent. This first quarter performance resulted in an increased return on average equity of 20.5 percent, a higher return on average assets of 1.44 percent, and an improved efficiency ratio of 52.7 percent. "AmSouth's record first quarter performance reflects strong, broad-based broad-based Of or relating to an index or average that provides a good representation of the overall market. The S&P 500 and NYSE Composite are generally regarded as broad-based stock indexes, while the popular Dow Jones Industrial Average is biased growth in loans and even stronger growth in deposits," 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. "We are capitalizing on disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. caused by other banks' mergers in many of our largest markets and we expect to continue to take advantage of those opportunities." Net interest income was $379.7 million in the first quarter, a 5.6 percent increase compared with the same quarter in 2004. The net interest margin in the first quarter was 3.45 percent, which is an 11 basis point decline compared with the same period in 2004, but it has been stable for the past four quarters. The increase in net interest income reflects strong growth in average loans of $3.5 billion, an 11.8 percent increase over the same quarter in 2004. Average deposits grew by $4.2 billion, or 13.9 percent during the same period, led by the low cost category, which grew by $3.6 billion, or 17.9 percent. Noninterest revenue, which includes earnings from service charges, trust, investment management services, securities gains and other sources of fee income, was $215.4 million for the quarter. 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:
Net charge-offs were 0.23 percent of average net loans in the first quarter, declining 18 basis points compared with the fourth quarter of 2004. The ratio of loan loss reserves to total loans was 1.11 percent at March 31, 2005. The loan loss provision exceeded net charge-offs by $1.5 million in the quarter. 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 March 31, 2005, were $112.7 million, or 0.34 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 $110.6 million, or 0.34 percent, in the previous quarter. For supplemental financial information about the first 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 April 19, 2005, 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 $50 billion in assets, more than 685 branch banking offices and 1,240 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:
annuity Payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities. and mutual fund sales, and trust and investment management services. AmSouth also offers a complete line of banking products and services at its web site, www.amsouth.com. Forward Looking Statements Statements in this press release 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. Factors which could cause results to differ materially from current management expectations include, but are not limited to: the effects of 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. agreements on AmSouth's branch expansion plan; 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; the growth and profitability of AmSouth's mortgage banking business, including mortgage-related income and fees, being less than expected; 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 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; any specific factors mentioned above in the text of this press release; 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
------------------------------------
2005 2004
----------- ------------------------
March 31 December 31 September 30
----------- ----------- ------------
Net interest income $379,748 $379,212 $375,906
Provision for loan losses 20,600 44,250 28,800
----------- ----------- ------------
Net interest income after
provision 359,148 334,962 347,106
Noninterest revenues 215,436 380,289 213,171
Noninterest expenses 319,517 460,416 362,478
----------- ----------- ------------
Income before income taxes 255,067 254,835 197,799
Income taxes 76,422 77,978 78,220
----------- ----------- ------------
Net income $178,645 $176,857 $119,579
=========== =========== ============
Earnings per common share -
basic (a) $0.50 $0.50 $0.34
Earnings per common share -
diluted (a) 0.50 0.49 0.33
Average common shares
outstanding - basic 354,299 355,072 352,838
Average common shares
outstanding - diluted 358,812 360,286 358,272
End of period common shares
outstanding 353,051 356,310 354,635
EARNINGS SUMMARY Three Months Ended Percent
----------------------- Change
2004 Versus
----------------------- Prior
June 30 March 31 Year
----------- ----------- ------------
Net interest income $361,410 $359,497 5.6%
Provision for loan losses 26,600 28,100 (26.7%)
----------- -----------
Net interest income after
provision 334,810 331,397 8.4%
Noninterest revenues 218,252 220,430 (2.3%)
Noninterest expenses 311,770 322,274 (0.9%)
----------- -----------
Income before income taxes 241,292 229,553 11.1%
Income taxes 74,329 69,454 10.0%
----------- -----------
Net income $166,963 $160,099 11.6%
=========== ===========
Earnings per common share -
basic (a) $0.47 $0.46 8.7%
Earnings per common share -
diluted (a) 0.47 0.45 11.1%
Average common shares
outstanding - basic 351,602 351,196
Average common shares
outstanding - diluted 356,314 356,908
End of period common shares
outstanding 353,414 352,904
EARNINGS SUMMARY YTD Percent
----------------------- Change
Versus
2004 2003 Prior
December 31 December 31 Year
----------- ----------- ------------
Net interest income $1,476,025 $1,414,635 4.3%
Provision for loan losses 127,750 173,700 (26.5%)
----------- -----------
Net interest income after
provision 1,348,275 1,240,935 8.6%
Noninterest revenues 1,032,142 855,778 20.6%
Noninterest expenses 1,456,938 1,205,577 20.8%
----------- -----------
Income before income taxes 923,479 891,136 3.6%
Income taxes 299,981 265,015 13.2%
----------- -----------
Net income $623,498 $626,121 (0.4%)
=========== ===========
Earnings per common share -
basic (a) $1.77 $1.79 (1.1%)
Earnings per common share -
diluted (a) 1.74 1.77 (1.7%)
Average common shares
outstanding - basic 352,684 350,237
Average common shares
outstanding - diluted 357,952 354,308
End of period common shares
outstanding 356,310 351,891
KEY PERFORMANCE RATIOS Three Months Ended
------------------------------------
2005 2004
----------- ------------------------
March 31 December 31 September 30
----------- ----------- ------------
Average shareholders' equity to
average total assets 7.04% 7.05% 6.87%
End of period shareholders'
equity to end of period total
assets 6.98 7.20 6.94
Loans net of unearned income to
total deposits 94.82 95.82 101.83
Return on average assets
(annualized) (a) 1.44 1.42 0.98
Return on average shareholders'
equity (annualized) (a) 20.48 20.15 14.20
Book value per common share $9.89 $10.02 $9.73
Tangible book value per common
share $9.04 $9.17 $8.88
Net interest margin - taxable
equivalent 3.45% 3.43% 3.44%
Efficiency ratio (a) 52.72 59.77 60.44
KEY PERFORMANCE RATIOS Three Months Ended
------------------------
2004
------------------------
June 30 March 31
----------- ------------
Average shareholders' equity to
average total assets 6.92% 7.09%
End of period shareholders'
equity to end of period total
assets 6.82 7.11
Loans net of unearned income to
total deposits 97.55 94.77
Return on average assets
(annualized) (a) 1.41 1.40
Return on average shareholders'
equity (annualized) (a) 20.31 19.76
Book value per common share $9.32 $9.56
Tangible book value per common
share $8.46 $8.71
Net interest margin - taxable
equivalent 3.44% 3.56%
Efficiency ratio (a) 52.83 54.57
KEY PERFORMANCE RATIOS YTD
------------------------
2004 2003
December 31 December 31
----------- ------------
Average shareholders' equity to
average total assets 6.98% 7.30%
End of period shareholders'
equity to end of period total
assets 7.20 7.08
Loans net of unearned income to
total deposits 95.82 96.38
Return on average assets
(annualized) (a) 1.30 1.47
Return on average shareholders'
equity (annualized) (a) 18.60 20.08
Book value per common share $10.02 $9.18
Tangible book value per common
share $9.17 $8.32
Net interest margin - taxable
equivalent 3.47% 3.78%
Efficiency ratio (a) 57.12 52.08
(a) Ratios and earnings per share as adjusted for the third quarter
2004 settlement agreement and related professional fees are
provided in the following table. These expenses represent matters
which management believes are not indicative of AmSouth's legal
and regulatory affairs arising in the normal course of business.
2004
------------------------
Three Months
Ended YTD
September 30 December 31
------------ -----------
Earnings per common share -
basic, GAAP basis 0.34 1.77
Adjustment for settlement
agreement and related
professional fees 0.15 0.15
------------ -----------
Earnings per common share -
basic, as adjusted 0.49 1.92
Earnings per common share -
diluted, GAAP basis 0.33 1.74
Adjustment for settlement
agreement and related
professional fees 0.15 0.15
------------ -----------
Earnings per common share -
diluted, as adjusted 0.48 1.89
Return on average assets
(annualized), GAAP basis 0.98% 1.30%
Adjustment for settlement
agreement and related
professional fees 0.42% 0.11%
------------ -----------
Return on average assets
(annualized), as adjusted 1.40% 1.41%
Return on average shareholders'
equity (annualized), GAAP basis 14.20% 18.60%
Adjustment for settlement
agreement and related
professional fees 6.23% 1.57%
------------ -----------
Return on average shareholders'
equity (annualized), as
adjusted 20.43% 20.17%
Efficiency ratio, GAAP basis 60.44% 57.12%
Adjustment for settlement
agreement and related
professional fees (9.00)% (2.12)%
------------ -----------
Efficiency ratio, as adjusted 51.44% 55.00%
Unaudited
AmSouth Bancorporation
SUMMARY FINANCIAL INFORMATION
($ in thousands)
BALANCE SHEET INFORMATION
AVERAGE BALANCES Three Months Ended
--------------------------------------
2005 2004
------------ -------------------------
March 31 December 31 September 30
------------ ------------ ------------
Loans net of unearned income $33,208,549 $32,525,563 $32,079,701
Total investment securities
(b) 12,530,581 12,413,850 12,374,084
Interest-earning assets (b) 45,928,699 45,224,572 44,684,992
Total assets 50,296,110 49,535,521 48,786,314
Noninterest-bearing deposits 7,225,621 6,978,442 6,643,642
Interest-bearing deposits (c) 27,486,980 26,344,499 25,735,595
Total deposits (c) 34,712,601 33,322,941 32,379,237
Shareholders' equity 3,538,378 3,491,181 3,350,323
BALANCE SHEET INFORMATION
AVERAGE BALANCES Three Months Ended Percent
------------------------- Change
Versus
2004 Prior
June 30 March 31 Year
------------ ------------ ------------
Loans net of unearned income $30,633,629 $29,705,743 11.8%
Total investment securities
(b) 12,488,887 11,779,479 6.4%
Interest-earning assets (b) 43,500,751 41,771,105 10.0%
Total assets 47,742,291 45,953,093 9.5%
Noninterest-bearing deposits 6,516,977 6,103,216 18.4%
Interest-bearing deposits (c) 25,337,923 24,381,234 12.7%
Total deposits (c) 31,854,900 30,484,450 13.9%
Shareholders' equity 3,305,636 3,258,359 8.6%
BALANCE SHEET INFORMATION
AVERAGE BALANCES YTD Percent
------------------------- Change
Versus
2004 2003 Prior
December 31 December 31 Year
------------ ------------ ------------
Loans net of unearned income $31,241,987 $28,511,159 9.6%
Total investment securities
(b) 12,264,785 9,812,306 25.0%
Interest-earning assets (b) 43,801,691 38,598,165 13.5%
Total assets 48,010,625 42,730,516 12.4%
Noninterest-bearing deposits 6,561,938 5,486,016 19.6%
Interest-bearing deposits (c) 25,453,038 23,096,600 10.2%
Total deposits (c) 32,014,976 28,582,616 12.0%
Shareholders' equity 3,351,754 3,117,362 7.5%
(b) Excludes adjustment for market valuation on available-for-sale
securities and certain noninterest-earning marketable equity
securities.
(c) Statement 133 valuation adjustments related to time deposits and
other interest-bearing liabilities are included in other
liabilities.
BALANCE SHEET INFORMATION
ENDING BALANCES 2005 2004
------------ -------------------------
March 31 December 31 September 30
------------ ------------ ------------
Loans net of unearned income $33,025,437 $32,801,337 $32,502,221
Total investment securities
(b) 12,685,902 12,510,959 12,572,341
Interest-earning assets (b) 45,930,052 45,453,601 45,379,714
Total assets 50,011,458 49,548,371 49,687,862
Noninterest-bearing deposits 7,500,430 7,182,806 6,798,077
Interest-bearing deposits 27,328,090 27,049,973 25,121,339
Total deposits 34,828,520 34,232,779 31,919,416
Shareholders' equity 3,491,722 3,568,841 3,450,558
BALANCE SHEET INFORMATION
ENDING BALANCES 2004 Percent
------------------------- Change
Versus
Prior
June 30 March 31 Year
------------ ------------ ------------
Loans net of unearned income $31,351,497 $29,893,723 10.5%
Total investment securities
(b) 12,716,413 12,426,033 2.1%
Interest-earning assets (b) 44,439,782 43,253,884 6.2%
Total assets 48,295,813 47,414,968 5.5%
Noninterest-bearing deposits 6,636,325 6,544,028 14.6%
Interest-bearing deposits 25,502,919 25,000,664 9.3%
Total deposits 32,139,244 31,544,692 10.4%
Shareholders' equity 3,295,478 3,372,349 3.5%
(b) Excludes adjustment for market valuation on available-for-sale
securities and certain noninterest-earning marketable equity
securities.
Unaudited
AmSouth Bancorporation
SUMMARY FINANCIAL INFORMATION
($ in thousands)
NONPERFORMING ASSETS 2005 2004
--------- ---------------------------------------
March December September June March
31 31 30 30 31
--------- --------- --------- --------- ---------
Nonaccrual loans (d) $87,255 $88,488 $92,958 $102,670 $102,904
Foreclosed
properties 23,258 19,609 23,043 29,586 29,291
Repossessions 2,208 2,498 3,231 3,295 3,733
--------- --------- --------- --------- ---------
Total nonperforming
assets (d) $112,721 $110,595 $119,232 $135,551 $135,928
========= ========= ========= ========= =========
Nonperforming assets
to loans net of
unearned income,
foreclosed
properties and
repossessions 0.34% 0.34% 0.37% 0.43% 0.45%
Accruing loans 90
days past due $50,718 $51,117 $63,727 $52,972 $58,195
========= ========= ========= ========= =========
(d) Exclusive of accruing loans 90 days past due
ALLOWANCE FOR LOAN
LOSSES 2005 2004
--------- ---------------------------------------
1st 4th 3rd 2nd 1st
Quarter Quarter Quarter Quarter Quarter
--------- --------- --------- --------- ---------
Balance at beginning
of period $366,774 $381,255 $382,482 $382,450 $384,124
Loans charged off (29,679) (44,277) (39,799) (38,202) (44,412)
Recoveries of loans
previously charged
off 10,598 11,146 11,062 11,634 16,406
--------- --------- --------- --------- ---------
Net Charge-offs (19,081) (33,131) (28,737) (26,568) (28,006)
Addition to
allowance charged
to expense 20,600 44,250 28,800 26,600 28,100
Reduction of
allowance related
to sold loans (1,457) (25,600) (1,290) - (1,768)
--------- --------- --------- --------- ---------
Balance at end of
period $366,836 $366,774 $381,255 $382,482 $382,450
========= ========= ========= ========= =========
Allowance for loan
losses to loans net
of unearned income 1.11% 1.12% 1.17% 1.22% 1.28%
Net charge-offs to
average loans net
of unearned income
(e) 0.23% 0.41% 0.36% 0.35% 0.38%
Allowance for loan
losses to
nonperforming loans
(d) 420.42% 414.49% 410.14% 372.54% 371.66%
Allowance for loan
losses to
nonperforming
assets (d) 325.44% 331.64% 319.76% 282.17% 281.36%
(e) Annualized
(d) Exclusive of accruing loans 90 days past due
Unaudited
AmSouth Bancorporation
RECONCILIATION OF GAAP AMOUNTS TO ADJUSTED AMOUNTS
($ in thousands, except per share data)
Three Months Ended
September 30, 2004
-------------------------------------
Earnings
Income Earnings per
Before per common
Income Net common share -
Taxes Income share diluted
--------- --------- -------- --------
Results as reported on a GAAP
basis $197,799 $119,579 $0.34 $0.33
Costs incurred under settlement
agreement and related
professional fees (f) 53,972 52,443 0.15 0.15
--------- --------- -------- --------
Results as adjusted $251,771 $172,022 $0.49 $0.48
Year Ended
December 31, 2004
-------------------------------------
Earnings
Income Earnings per
Before per common
Income Net common share -
Taxes Income share diluted
--------- --------- -------- --------
Results as reported on a GAAP
basis $923,479 $623,498 $1.77 $1.74
Costs incurred under settlement
agreement and related
professional fees (f) 53,972 52,443 0.15 0.15
--------- --------- -------- --------
Results as adjusted $977,451 $675,941 $1.92 $1.89
(f) These expenses represent matters which management believes are not
indicative of AmSouth's legal and regulatory affairs arising in
the normal course of business.
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