AmSouth Reports Record Fourth Quarter Net Income of $158.6 Million on Higher Revenues; 2003 Earnings Reach Record $626.1 Million.Business Editors To hear a webcast of the conference call with analysts at 2 p.m. CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. , Jan. 13, go to www.amsouth.com and click on the webcast link under "Message Center." For supplemental financial information about the fourth quarter and 2003 results, visit the Investor Relations 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)--Jan. 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 in the fourth quarter ended Dec. 31, 2003, 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, a 2.3 percent increase from $.44 per diluted share in the fourth quarter of 2002. Net income for the fourth quarter of 2003 was $158.6 million versus $155.2 million for the same period in 2002. For the year, reported earnings were $626.1 million compared with $609.1 million in 2002. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $1.77 for the year, a 5.4 percent increase from $1.68 per share in 2002. Return on equity for 2003 was 20 percent, return on assets Return on assets (ROA) Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). was 1.47 percent and the efficiency ratio was 52 percent. "AmSouth delivered solid results throughout 2003, driven by improving loan demand and strong deposit growth," 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. "With good momentum in all of our lines of business, we enter 2004 focused on growth opportunities and enhanced performance." AmSouth's fourth quarter performance resulted in a return on average equity of 20 percent, a return on average assets of 1.41 percent and an efficiency ratio of 52 percent. Net interest income for the quarter increased 17.9 percent on an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis compared to the third quarter, reaching $358.8 million. The net interest margin rose to 3.61 percent in the fourth quarter, compared to 3.60 percent in the third quarter. Total revenue increased 6.9 percent annualized compared with the previous quarter. Average loans grew by $2.4 billion in the fourth quarter, or 9 percent, to $29.3 billion compared with the same quarter in 2002, while total deposits grew $2.9 billion, or 11 percent. Noninterest income, which includes earnings from trust, investment management services and other sources of fee income, was $223.4 million, an increase of $31.2 million or 16 percent compared with the same quarter in 2002. Fourth quarter noninterest expenses were $310.8 million, an increase of 12 percent compared with the same quarter in 2002. Net charge-offs were .60 percent of average net loans in the fourth quarter of 2003, compared with .58 percent in the previous quarter. The ratio of loan loss reserves to total loans was 1.31 percent, down one basis point from the previous 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 Dec. 31, 2003, were $147.8 million, or .50 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 $161.8 million or .55 percent in the previous quarter. About AmSouth AmSouth is a regional bank holding company with $46 billion in assets, more than 650 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, 2002, and quarterly reports on Form 10-Q Form 10-Q See 10-Q. for the quarters ended March 31, June June: see month. 30, and September September: see month. 30, 2003, describe 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 authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities ; 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
----------------------------------
2003
December 31 September 30 June 30
----------------------------------------------------------------------
Net interest income $358,784 $343,453 $349,356
Provision for loan losses 44,500 41,800 42,700
----------------------------------
Net interest income after provision 314,284 301,653 306,656
Noninterest revenues 223,390 228,785 210,718
Noninterest expenses 310,793 306,556 298,622
----------------------------------
Income before income taxes 226,881 223,882 218,752
Income taxes 68,329 66,494 63,927
----------------------------------
Net income $158,552 $157,388 $154,825
==================================
Earnings per common share $0.45 $0.45 $0.44
Earnings per common share - diluted 0.45 0.45 0.44
Average common shares outstanding 350,067 349,421 349,509
Average common shares outstanding -
diluted 355,306 353,317 353,354
End of period common shares
outstanding 351,891 350,622 350,477
Percent
EARNINGS SUMMARY Three Months Ended Change
------------------------- Versus
2003 2002 Prior
March 31 December 31 Year
----------------------------------------------------------------------
Net interest income $363,042 $360,483 (0.5%)
Provision for loan losses 44,700 53,450 (16.7%)
-------------------------
Net interest income after provision 318,342 307,033 2.4%
Noninterest revenues 192,885 192,234 16.2%
Noninterest expenses 289,606 276,684 12.3%
-------------------------
Income before income taxes 221,621 222,583 1.9%
Income taxes 66,265 67,376 1.4%
------------- -----------
Net income $155,356 $155,207 2.2%
============= ===========
Earnings per common share $0.44 $0.44 2.3%
Earnings per common share - diluted 0.44 0.44 2.3%
Average common shares outstanding 351,981 353,792
Average common shares outstanding -
diluted 355,265 356,784
End of period common shares
outstanding 351,645 353,424
Percent
EARNINGS SUMMARY YTD Change
------------------------ Versus
2003 2002 Prior
December 31 December 31 Year
------------------------------------------------ ---------------------
Net interest income $1,414,635 $1,472,640 (3.9%)
Provision for loan losses 173,700 213,550 (18.7%)
------------ -----------
Net interest income after provision 1,240,935 1,259,090 (1.4%)
Noninterest revenues 855,778 739,361 15.7%
Noninterest expenses 1,205,577 1,126,622 7.0%
------------ -----------
Income before income taxes 891,136 871,829 2.2%
Income taxes 265,015 262,682 0.9%
------------ -----------
Net income $626,121 $609,147 2.8%
============ ===========
Earnings per common share $1.79 $1.70 5.3%
Earnings per common share - diluted 1.77 1.68 5.4%
Average common shares outstanding 350,237 358,176
Average common shares outstanding -
diluted 354,308 362,329
End of period common shares
outstanding 351,891 353,424
KEY PERFORMANCE RATIOS Three Months Ended
--------------------------------
2003
December 31 September 30 June 30
----------------------------------------------------------------------
Average shareholders' equity to
average total assets 7.05% 7.14% 7.43%
End of period shareholders' equity to
end of period total assets 7.08 7.11 7.18
Loans net of unearned income to total
deposits 96.38 98.85 96.99
Return on average assets (annualized) 1.41 1.44 1.48
Return on average shareholders' equity
(annualized) 19.96 20.18 19.95
Book value per common share $9.18 $8.99 $8.98
Tangible book value per common share $8.32 $8.13 $8.12
Net interest margin - taxable
equivalent 3.61% 3.60% 3.84%
Efficiency ratio 52.43 52.58 52.26
KEY PERFORMANCE RATIOS Three Months Ended YTD
--------------------- -----------------------
2003 2002 2003 2002
March 31 December 31 December 31 December 31
-------------------------------------------- ------------------------
Average shareholders'
equity to average total
assets 7.60% 7.73% 7.30% 7.86%
End of period
shareholders' equity to
end of period total
assets 7.42 7.68 7.08 7.68
Loans net of unearned
income to total
deposits 98.92 100.13 96.38 100.13
Return on average assets
(annualized) 1.54 1.55 1.47 1.58
Return on average
shareholders' equity
(annualized) 20.26 20.01 20.08 20.10
Book value per common
share $8.89 $8.82 $9.18 $8.82
Tangible book value per
common share $8.03 $7.96 $8.32 $7.96
Net interest margin -
taxable equivalent 4.11% 4.12% 3.78% 4.37%
Efficiency ratio 51.02 48.98 52.08 49.78
Unaudited
AmSouth Bancorporation
SUMMARY FINANCIAL INFORMATION
($ in thousands)
BALANCE SHEET INFORMATION Three Months Ended
AVERAGE BALANCES --------------------------------------
2003
December 31 September 30 June 30
----------------------------------------------------------------------
Loans net of unearned income $29,263,749 $28,667,773 $28,265,837
Total investment securities(a) 11,158,897 10,008,025 9,086,673
Interest-earning assets(a) 40,609,843 39,075,134 37,708,903
Total assets 44,697,830 43,315,707 41,917,998
Noninterest-bearing deposits 5,855,497 5,605,708 5,329,351
Interest-bearing deposits(b) 23,952,276 23,598,915 22,766,452
Total deposits(b) 29,807,773 29,204,623 28,095,803
Shareholders' equity 3,151,106 3,094,790 3,112,945
Percent
BALANCE SHEET INFORMATION Three Months Ended Change
AVERAGE BALANCES ------------------------- Versus
2003 2002 Prior
March 31 December 31 Year
----------------------------------------------------------------------
Loans net of unearned income $27,829,798 $26,817,982 9.1%
Total investment securities(a) 8,969,417 8,523,874 30.9%
Interest-earning assets(a) 36,953,359 35,911,164 13.1%
Total assets 40,942,836 39,837,967 12.2%
Noninterest-bearing deposits 5,144,378 5,050,493 15.9%
Interest-bearing deposits(b) 22,042,248 21,815,373 9.8%
Total deposits(b) 27,186,626 26,865,866 11.0%
Shareholders' equity 3,110,406 3,077,837 2.4%
Percent
BALANCE SHEET INFORMATION YTD Change
AVERAGE BALANCES ------------------------- Versus
2003 2002 Prior
December 31 December 31 Year
----------------------------------------------------------------------
Loans net of unearned income $28,511,159 $25,921,769 10.0%
Total investment securities(a) 9,812,306 8,402,103 16.8%
Interest-earning assets(a) 38,598,165 34,842,384 10.8%
Total assets 42,730,516 38,564,568 10.8%
Noninterest-bearing deposits 5,486,016 4,907,143 11.8%
Interest-bearing deposits(b) 23,096,600 21,036,391 9.8%
Total deposits(b) 28,582,616 25,943,534 10.2%
Shareholders' equity 3,117,362 3,030,901 2.9%
(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 Three Months Ended
ENDING BALANCES -------------------------------------
2003
December 31 September 30 June 30
----------------------------------------------------------------------
Loans net of unearned income $29,339,364 $29,128,404 $28,222,542
Total investment securities(a) 12,036,854 11,011,789 10,522,760
Interest-earning assets(a) 41,521,449 40,341,180 39,296,146
Total assets 45,615,516 44,342,699 43,784,207
Noninterest-bearing deposits 6,273,835 5,839,977 5,849,456
Interest-bearing deposits 24,166,518 23,628,246 23,249,370
Total deposits 30,440,353 29,468,223 29,098,826
Shareholders' equity 3,229,669 3,152,834 3,145,575
Percent
BALANCE SHEET INFORMATION Three Months Ended Change
ENDING BALANCES ------------------------- Versus
2003 2002 Prior
March 31 December 31 Year
----------------------------------------------------------------------
Loans net of unearned income $27,698,948 $27,350,918 7.3%
Total investment securities(a) 9,623,430 8,966,778 34.2%
Interest-earning assets(a) 37,811,324 36,475,398 13.8%
Total assets 42,099,499 40,571,272 12.4%
Noninterest-bearing deposits 5,569,319 5,494,657 14.2%
Interest-bearing deposits 22,431,130 21,820,967 10.7%
Total deposits 28,000,449 27,315,624 11.4%
Shareholders' equity 3,125,179 3,115,997 3.6%
(a) Excludes adjustment for market valuation on available-for-sale
securities and certain noninterest-earning marketable equity
securities.
Unaudited
AmSouth Bancorporation
SUMMARY FINANCIAL INFORMATION
($ in thousands)
NONPERFORMING
ASSETS 2003 2002
December 31 September 30 June 30 March 31 December 31
---------------------------------------------------------- -----------
Nonaccrual
loans(c) $110,153 $120,793 $127,645 $149,551 $158,829
Foreclosed
properties 32,616 35,163 40,656 34,622 33,828
Repossessions 4,986 5,890 7,058 7,082 4,346
------------------------------------------ -----------
Total
nonperforming
assets(c) $147,755 $161,846 $175,359 $191,255 $197,003
========================================== ===========
Nonperforming
assets to loans
net of unearned
income, foreclosed
properties and
repossessions 0.50% 0.55% 0.62% 0.69% 0.72%
Accruing loans 90
days past due $67,460 $72,588 $67,454 $80,585 $91,045
========================================== ===========
(c) Exclusive of accruing loans 90 days past due
ALLOWANCE FOR
LOAN LOSSES 2003 2002
4th 3rd 2nd 1st 4th
Quarter Quarter Quarter Quarter Quarter
---------------------------------------------------------- -----------
Balance at
beginning of
period $384,059 $384,011 $383,936 $381,579 $379,878
Loans charged off (56,403) (55,102) (55,565) (52,988) (61,334)
Recoveries of
loans previously
charged off 11,968 13,350 12,940 10,645 9,585
------------------------------------------ -----------
Net Charge-offs (44,435) (41,752) (42,625) (42,343) (51,749)
Addition to
allowance
charged to
expense 44,500 41,800 42,700 44,700 53,450
------------------------------------------ -----------
Balance at end
of period $384,124 $384,059 $384,011 $383,936 $381,579
========================================== ===========
Allowance for
loan losses to
loans net of
unearned income 1.31% 1.32% 1.36% 1.39% 1.40%
Net charge-offs
to average
loans net of
unearned income(d) 0.60% 0.58% 0.60% 0.62% 0.77%
Allowance for
loan losses to
nonperforming
loans(c) 348.72% 317.95% 300.84% 256.73% 240.25%
Allowance for
loan losses to
nonperforming
assets(c) 259.97% 237.30% 218.99% 200.75% 193.69%
(c) Exclusive of accruing loans 90 days past due
(d) Annualized
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