AmSouth Reports Record First Quarter Earnings of $160.1 Million or $.45 Per Share.Business Editors To hear a webcast of the conference call with analysts at 2 p.m. CDT CDT abbr. Central Daylight Time CDT Central Daylight Time CDT n abbr (US) (= Central Daylight Time) → hora de verano del centro; (BRIT , April 13, go to www.amsouth.com and click on the webcast link under "Message Center." For supplemental financial information about the first quarter results, 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/irrc. 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. .--(BUSINESS WIRE)--April 13, 2004 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 first quarter ended March 31, 2004, of $.45 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 $.44 per diluted share reported for the first quarter of 2003. Net income for the first quarter of 2004 was a record $160.1 million versus $155.4 million for the same period in 2003. AmSouth's first quarter performance resulted in a return on average equity of 19.8 percent, a return on average assets of 1.40 percent and an efficiency ratio of 54.6 percent. "Solid growth in loans and deposits, continued improvement in credit quality and growth in core categories of noninterest revenues were key contributors to the quarter's results," 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 confident that as the economy improves, our continued focus on growth and expansion in some of the best markets in the country will serve us well and further enhance our performance." Net interest income was $359.5 million in the first quarter, higher compared with the previous quarter, and the net interest margin was 3.56 percent. Average loans for the quarter grew by $1.9 billion, a 6.7 percent increase over the same quarter in 2003. Average deposits were higher by $3.3 billion, or 12.1 percent during the same period, including a 10.9 percent increase in average low-cost deposits. Noninterest revenue, which includes earnings from service charges, trust, investment management services, securities gains and other sources of fee income, was $220.4 million for the quarter, an increase of $27.5 million, or 14.3 percent, compared with the same quarter in 2003. Service charges increased 23.4 percent compared with the first quarter of 2003, trust income grew 11.0 percent over the same period, and investment service income rose 25.1 percent compared with the previous year. Noninterest expenses in the first quarter were $322.3 million, up 11.3 percent compared with the first quarter of 2003 and reflected higher personnel related costs and continuing investments in branch expansion and other revenue producing initiatives. Net charge-offs were .38 percent of average net loans in the first quarter, improving 22 basis points from .60 percent in the fourth quarter of 2003, marking the lowest level of charge-offs since the second quarter of 2000. The ratio of loan loss reserves to total loans was 1.28 percent at March 31, 2004, and continued to reflect improvement in credit quality trends and a shift in the loan portfolio mix to include a greater proportion of residential mortgages. 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. continued to decline during the first quarter. Total nonperforming assets at March 31, 2004, were $135.9 million, or .45 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 $147.8 million, or .50 percent, in the previous quarter. For supplemental financial information about the first quarter results, you may 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 13, 2004, or visit the Investor Relations Resource Center on AmSouth's web site at www.amsouth.com. About AmSouth AmSouth is a regional bank holding company with $47 billion in assets, more than 660 branch banking offices and over 1,200 ATMs. AmSouth operates in 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). , 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 , 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 made in this document which 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 significantly from those described in the forward-looking statements. AmSouth's most recent annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December December: see month. 31, 2003, describes factors which could cause results to differ materially from management's current expectations. 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; 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 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. ; 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; unexpected judicial actions and developments; results of investigations, examinations, and reviews of regulatory and law enforcement authorities; and 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. To the extent that terrorist attacks or other hostilities hos·til·i·ty n. pl. hos·til·i·ties 1. The state of being hostile; antagonism or enmity. See Synonyms at enmity. 2. a. A hostile act. b. hostilities Acts of war; overt warfare. , including geopolitical ge·o·pol·i·tics n. (used with a sing. verb) 1. The study of the relationship among politics and geography, demography, and economics, especially with respect to the foreign policy of a nation. 2. a. conflicts, cause a prolonged pro·long tr.v. pro·longed, pro·long·ing, pro·longs 1. To lengthen in duration; protract. 2. To lengthen in extent. negative impact on the economy, the effects may include: adverse changes in customers' borrowing, investing or spending patterns; market disruptions Market Disruption A situation where markets cease to function in a regular manner, typically characterized by rapid and large market declines. Market disruptions can result from both physical threats to the stock exchange or a unusual trading (as in a crash). ; adverse effects on the performance of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and foreign equity markets; currency fluctuations; exchange controls; restriction restriction - A bug or design error that limits a program's capabilities, and which is sufficiently egregious that nobody can quite work up enough nerve to describe it as a feature. of asset growth; negative effects on credit quality; and other effects that could adversely impact the performance, earnings and revenue growth of the financial services industry, including AmSouth. 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
----------------------------------
2004
March 31 December 31 September 30
--------- ----------- ------------
Net interest income $359,497 $358,784 $343,453
Provision for loan losses 28,100 44,500 41,800
--------- ----------- ------------
Net interest income after provision 331,397 314,284 301,653
Noninterest revenues 220,430 223,390 228,785
Noninterest expenses 322,274 310,793 306,556
--------- ----------- ------------
Income before income taxes 229,553 226,881 223,882
Income taxes 69,454 68,329 66,494
--------- ----------- ------------
Net income $160,099 $158,552 $157,388
========= =========== ============
Earnings per common share $0.46 $0.45 $0.45
Earnings per common share - diluted 0.45 0.45 0.45
Average common shares outstanding 351,196 350,067 349,421
Average common shares outstanding -
diluted 356,908 355,306 353,317
End of period common shares
outstanding 352,904 351,891 350,622
EARNINGS SUMMARY
Percent
Change
Versus
2003 Prior
June 30 March 31 Year
--------- --------- -------
Net interest income $349,356 $363,042 (1.0%)
Provision for loan losses 42,700 44,700 (37.1%)
--------- ---------
Net interest income after provision 306,656 318,342 4.1%
Noninterest revenues 210,718 192,885 14.3%
Noninterest expenses 298,622 289,606 11.3%
--------- ---------
Income before income taxes 218,752 221,621 3.6%
Income taxes 63,927 66,265 4.8%
--------- ---------
Net income $154,825 $155,356 3.1%
========= =========
Earnings per common share $0.44 $0.44 4.5%
Earnings per common share - diluted 0.44 0.44 2.3%
Average common shares outstanding 349,509 351,981
Average common shares outstanding -
diluted 353,354 355,265
End of period common shares outstanding 350,477 351,645
EARNINGS SUMMARY YTD
-------------------
Percent
Change
Versus
2004 2003 Prior
March 31 March 31 Year
--------- --------- -------
Net interest income $359,497 $363,042 (1.0%)
Provision for loan losses 28,100 44,700 (37.1%)
--------- ---------
Net interest income after provision 331,397 318,342 4.1%
Noninterest revenues 220,430 192,885 14.3%
Noninterest expenses 322,274 289,606 11.3%
--------- ---------
Income before income taxes 229,553 221,621 3.6%
Income taxes 69,454 66,265 4.8%
--------- ---------
Net income $160,099 $155,356 3.1%
========= =========
Earnings per common share $0.46 $0.44 4.5%
Earnings per common share - diluted 0.45 0.44 2.3%
Average common shares outstanding 351,196 351,981
Average common shares outstanding -
diluted 356,908 355,265
End of period common shares outstanding 352,904 351,645
KEY PERFORMANCE RATIOS Three Months Ended
---------------------------------
2004
March 31 December 31 September 30
-------- ----------- ------------
Average shareholders' equity to
average total assets 7.09% 7.05% 7.14%
End of period shareholders' equity
to end of period total assets 7.11 7.08 7.11
Loans net of unearned income to
total deposits 94.77 96.38 98.85
Return on average assets
(annualized) 1.40 1.41 1.44
Return on average shareholders'
equity (annualized) 19.76 19.96 20.18
Book value per common share $9.56 $9.18 $8.99
Tangible book value per common share $8.71 $8.32 $8.13
Net interest margin - taxable
equivalent 3.56% 3.61% 3.60%
Efficiency ratio 54.57 52.43 52.58
KEY PERFORMANCE RATIOS
2003
June 30 March 31
--------- --------
Average shareholders' equity to
average total assets 7.43% 7.60%
End of period shareholders' equity to
end of period total assets 7.18 7.42
Loans net of unearned income to total
deposits 96.99 98.92
Return on average assets (annualized) 1.48 1.54
Return on average shareholders'
equity (annualized) 19.95 20.26
Book value per common share $8.98 $8.89
Tangible book value per common share $8.12 $8.03
Net interest margin - taxable
equivalent 3.84% 4.11%
Efficiency ratio 52.26 51.02
KEY PERFORMANCE RATIOS YTD
------------------
2004 2003
March 31 March 31
--------- --------
Average shareholders' equity to
average total assets 7.09% 7.60%
End of period shareholders' equity
to end of period total assets 7.11 7.42
Loans net of unearned income to
total deposits 94.77 98.92
Return on average assets
(annualized) 1.40 1.54
Return on average shareholders'
equity (annualized) 19.76 20.26
Book value per common share $9.56 $8.89
Tangible book value per common share $8.71 $8.03
Net interest margin - taxable
equivalent 3.56% 4.11%
Efficiency ratio 54.57 51.02
Unaudited
AmSouth Bancorporation
SUMMARY FINANCIAL INFORMATION
($ in thousands)
BALANCE SHEET INFORMATION
AVERAGE BALANCES Three Months Ended
------------------------- --------------------------------------
2004
March 31 December 31 September 30
------------ ------------ ------------
Loans net of unearned income $29,705,743 $29,263,749 $28,667,773
Total investment securities (a) 11,779,479 11,158,897 10,008,025
Interest-earning assets (a) 41,771,105 40,609,843 39,075,134
Total assets 45,953,093 44,697,830 43,315,707
Noninterest-bearing deposits 6,103,216 5,855,497 5,605,708
Interest-bearing deposits (b) 24,381,234 23,952,276 23,598,915
Total deposits (b) 30,484,450 29,807,773 29,204,623
Shareholders' equity 3,258,359 3,151,106 3,094,790
BALANCE SHEET INFORMATION
AVERAGE BALANCES Percent
------------------------- Change
2003 Versus Prior
June 30 March 31 Year
------------ ------------ ------------
Loans net of unearned income $28,265,837 $27,829,798 6.7%
Total investment securities (a) 9,086,673 8,969,417 31.3%
Interest-earning assets (a) 37,708,903 36,953,359 13.0%
Total assets 41,917,998 40,942,836 12.2%
Noninterest-bearing deposits 5,329,351 5,144,378 18.6%
Interest-bearing deposits (b) 22,766,452 22,042,248 10.6%
Total deposits (b) 28,095,803 27,186,626 12.1%
Shareholders' equity 3,112,945 3,110,406 4.8%
BALANCE SHEET INFORMATION
AVERAGE BALANCES YTD
------------------------- ------------------------- Percent
Change
2004 2003 Versus Prior
March 31 March 31 Year
------------ ------------ ------------
Loans net of unearned income $29,705,743 $27,829,798 6.7%
Total investment securities (a) 11,779,479 8,969,417 31.3%
Interest-earning assets (a) 41,771,105 36,953,359 13.0%
Total assets 45,953,093 40,942,836 12.2%
Noninterest-bearing deposits 6,103,216 5,144,378 18.6%
Interest-bearing deposits (b) 24,381,234 22,042,248 10.6%
Total deposits (b) 30,484,450 27,186,626 12.1%
Shareholders' equity 3,258,359 3,110,406 4.8%
(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,
certificates of deposit of $100,000 or more and other interest-
bearing liabilities are included in other liabilities.
BALANCE SHEET INFORMATION
ENDING BALANCES
-------------------------------
Loans net of unearned income $29,893,723 $29,339,364 $29,128,404
Total investment securities (a) 12,426,033 12,036,854 11,011,789
Interest-earning assets (a) 43,253,884 41,521,449 40,341,180
Total assets 47,414,968 45,615,516 44,342,699
Noninterest-bearing deposits 6,544,028 6,273,835 5,839,977
Interest-bearing deposits 25,000,664 24,166,518 23,628,246
Total deposits 31,544,692 30,440,353 29,468,223
Shareholders' equity 3,372,349 3,229,669 3,152,834
BALANCE SHEET INFORMATION
ENDING BALANCES Percent
------------------------- Change
Versus Prior
Year
------------
Loans net of unearned income $28,222,542 $27,698,948 7.9%
Total investment securities (a) 10,522,760 9,623,430 29.1%
Interest-earning assets (a) 39,296,146 37,811,324 14.4%
Total assets 43,784,207 42,099,499 12.6%
Noninterest-bearing deposits 5,849,456 5,569,319 17.5%
Interest-bearing deposits 23,249,370 22,431,130 11.5%
Total deposits 29,098,826 28,000,449 12.7%
Shareholders' equity 3,145,575 3,125,179 7.9%
(a) Excludes adjustment for market valuation on available-for-sale
securities and certain noninterest-earning marketable equity
securities.
Unaudited
AmSouth Bancorporation
SUMMARY FINANCIAL INFORMATION
($ in thousands)
NONPERFORMING ASSETS 2004 2003
March December September June March
31 31 30 30 31
--------- --------- --------- --------- ---------
Nonaccrual loans (c) $102,904 $110,153 $120,793 $127,645 $149,551
Foreclosed
properties 29,291 32,616 35,163 40,656 34,622
Repossessions 3,733 4,986 5,890 7,058 7,082
--------- --------- --------- --------- ---------
Total nonperforming
assets (c) $135,928 $147,755 $161,846 $175,359 $191,255
========= ========= ========= ========= =========
Nonperforming assets
to loans net of
unearned income,
foreclosed
properties and
repossessions 0.45% 0.50% 0.55% 0.62% 0.69%
Accruing loans 90
days past due $58,195 $67,460 $72,588 $67,454 $80,585
========= ========= ========= ========= =========
(c) Exclusive of accruing loans 90 days past due
ALLOWANCE FOR LOAN LOSSES
2004 2003
1st 4th 3rd 2nd 1st
Quarter Quarter Quarter Quarter Quarter
-------------------- --------- --------- --------- --------- ---------
Balance at beginning
of period $384,124 $384,059 $384,011 $383,936 $381,579
Loans charged off (44,412) (56,403) (55,102) (55,565) (52,988)
Recoveries of loans
previously charged
off 16,406 11,968 13,350 12,940 10,645
--------- --------- --------- --------- ---------
Net Charge-offs (28,006) (44,435) (41,752) (42,625) (42,343)
Addition to
allowance charged
to expense 28,100 44,500 41,800 42,700 44,700
Allowance sold (1,768) - - - -
--------- --------- --------- --------- ---------
Balance at end of
period $382,450 $384,124 $384,059 $384,011 $383,936
========= ========= ========= ========= =========
Allowance for loan
losses to loans net
of unearned income 1.28% 1.31% 1.32% 1.36% 1.39%
Net charge-offs to
average loans net
of unearned income (d) 0.38% 0.60% 0.58% 0.60% 0.62%
Allowance for loan
losses to nonperforming
loans (c) 371.66% 348.72% 317.95% 300.84% 256.73%
Allowance for loan
losses to nonperforming
assets (c) 281.36% 259.97% 237.30% 218.99% 200.75%
(d) Annualized
(c) Exclusive of accruing loans 90 days past due
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion