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BANK SOUTH REPORTS PROFIT, IMPROVING LOAN QUALITY

 BANK SOUTH REPORTS PROFIT, IMPROVING LOAN QUALITY
 ATLANTA, July 16 /PRNewswire/ -- Bank South (NASDAQ: BKSO) announced


today net income of $1.6 million for the second quarter of 1992, or 4 cents per share, compared to a loss of $16.3 million, or 47 cents per share for the second quarter of 1991.
 Year-to-date, Bank South has earned $2.2 million, compared to a loss of $10.7 million for the first half of 1991.
 At the end of the second quarter of 1992, non-performing assets totaled $155.1 million, 13 percent less than the $178.7 million reported at the end of the first quarter. From their peak of $235.7 million in the third quarter of 1991, non-performing assets have declined by $80.6 million, or 34 percent, and are at their lowest level since the second quarter of 1990.
 At the end of the second quarter, non-performing assets represented 5.52 percent of total loans and other real estate owned (OREO), compared to 6.28 percent at the end of the first quarter, 7.59 percent at the end of the fourth quarter of 1991, and 8.06 percent at the end of the third quarter of 1991.
 Loans 90 days or more past due declined from $10.3 million to $7.1 million during the quarter -- their lowest level at quarter-end since March 1987.
 "The trends clearly are in the right direction for both problem loans and net income," said Patrick L. Flinn, chairman and chief executive officer. "We are ahead of schedule on our recovery -- and only because of the people throughout this organization who have worked extremely hard during the past year."
 Bank South reported a provision to the loan loss reserve of $8.0 million and OREO expenses of $4.5 million during the second quarter. This compares to a provision of $19.8 million and OREO expenses of $16.4 million during the second quarter of 1991. During the first quarter of 1992, the provision was $9.0 million and OREO expenses were $5.5 million. Net loan charge-offs for the second quarter totaled $13.7 million, compared to $4.3 million during the first quarter of 1992 and $17.5 million during the second quarter of 1991.
 "We still have work to do to improve loan quality and to bring in quality new assets," Flinn said. "The economy has shown some improvement, but loan demand has not increased to the degree we would like."
 Flinn continued, "In addition to the progress we have made in improving asset quality, we have been successful in attracting core deposits and raising capital."
 Core deposits increased $203 million from the end of the second quarter of 1991 to $3.4 billion, a 6 percent increase. This in part reflects the company's more aggressive marketing efforts, including the Rate Plus Age savings certificate promotion and the recent "Trade in Your Bank" campaign.
 Also during the quarter, Bank South completed the sale of 5 million new shares of its common stock in Great Britain and continental Europe. Proceeds are being used for general corporate purposes and the enhancement of capital ratios. On June 30, book value was $7.01 per share. Shareholders' equity as a percentage of total assets stood at 6.10 percent at June 30, compared to 5.33 percent on March 31.
 Among other results for the quarter:
 -- Taxable equivalent net interest income was $42.4 million, a 9 percent increase from the $38.9 million during the first quarter.
 -- The net interest margin was 4.25 percent, compared to 4.01 percent during the first quarter and 4.11 percent during the second quarter of 1991.
 -- Non-interest expense, not including OREO expense, declined $1.4 million, or 3 percent compared to the first quarter, due to the company's ongoing expense management effort.
 Also, Bank South introduced during the quarter a new Dividend Reinvestment and Stock Purchase Plan, through which shareholders can purchase Bank South shares at a 5 percent discount to market value. Shareholders who want more information on the plan should call 800-782-5936.
 Bank South Corporation is a $4.6 billion, two-bank holding company with 139 offices throughout Georgia and northwest Florida.
 BANK SOUTH CORPORATION AND SUBSIDIARIES
 Selected Financial Information (Unaudited)
 (Dollars in thousands, except per share data)
 1991
 1st qtr. 2nd qtr. 3rd qtr. 4th qtr.
 For the period:
 Net interest income,
 taxable equivalent $46,330 $ 45,908 $ 42,819 $40,410
 Net interest income 43,081 42,713 39,979 38,775
 Provision for loan losses 5,932 19,809 33,903 13,395
 Other income 22,746 22,956 21,859 30,337
 Other real estate expense 2,011 16,409 20,302 7,995
 Other expense 50,852 49,713 53,409 55,510
 Income tax expense (benefit) 1,386 (3,949) (8,983) (76)
 Net income (loss) $ 5,646 $(16,313) $(36,793) $(7,712)
 Year end 1992
 12/31/91 1st qtr. 2nd qtr.
 For the period:
 Net interest income,
 taxable equivalent $175,467 $38,941 $42,429
 Net interest income 164,548 38,148 41,670
 Provision for loan losses 73,039 9,000 8,000
 Other income 97,898 28,583 22,733
 Other real estate expense 46,717 5,470 4,489
 Other expense 209,484 51,440 50,025
 Income tax exp. (benefit) (11,622) 153 326
 Net income (loss) $(55,172) $ 668 $ 1,563
 YTD 2nd qtr 92 vs.
 6/30/92 2nd qtr. 91
 For the period: (pct.)
 Net interest income,
 taxable equivalent $81,370 (8)
 Net interest income 79,818 (2)
 Provision for loan losses 17,000 (60)
 Other income 51,316 (1)
 Other real estate expense 9,959 (73)
 Other expense 101,465 1
 Income tax exp. (benefit) 479 108
 Net income (loss) $ 2,231 110
 1991
 1st qtr. 2nd qtr. 3rd qtr. 4th qtr.
 Per common share:
 Net income (loss) $ 0.16 $ (0.47) $ (1.06) $ (0.22)
 Cash dividends declared 0.13 0.13 0.00 0.00
 Book value 8.69 8.07 7.04 6.82
 Common stock price:
 High $ 8.25 $ 7.75 $ 7.50 $ 6.88
 Low 5.00 5.50 5.50 5.38
 Quarter end 7.25 6.63 5.75 5.63
 Year end 1992
 12/31/91 1st qtr. 2nd qtr.
 Per common share:
 Net income (loss) $ (1.59) $ 0.02 $ 0.04
 Cash dividends declared 0.26 0.00 0.00
 Book value 6.82 6.84 7.01
 Common stock price:
 High $ 8.00 $ 10.00 $12.00
 Low 5.00 5.50 8.75
 Quarter end 5.63 8.75 10.88
 YTD 2nd qtr 92 vs.
 6/30/92 2nd qtr. 91
 Per common share: (pct.)
 Net income (loss) $ 0.06 109
 Cash dividends declared 0.00 (100)
 Book value 7.01 (13)
 Common stock price:
 High 12.00 55
 Low 5.50 59
 Quarter end 10.88 64
 1991
 1st qtr. 2nd qtr. 3rd qtr. 4th qtr.
 Quarter end balances:
 Loans, net of unearned
 income $3,197,265 $3,023,488 $2,837,491 $2,761,167
 Earning assets 4,656,235 4,372,689 4,223,500 3,879,562
 Total assets 5,167,467 4,896,430 4,886,629 4,444,825
 Core deposits 3,153,724 3,163,475 3,367,706 3,305,064
 Total deposits 4,005,021 3,898,019 3,935,602 3,634,185
 Long-term debt 62,667 62,623 62,580 62,452
 Shareholders' equity 299,677 279,802 244,778 237,711
 Common shares outst. 34,476,479 34,652,767 34,772,080 34,849,682
 Year end 1992
 12/31/91 1st qtr. 2nd qtr.
 Quarter end balances:
 Loans, net of unearned
 income $2,761,167 $2,776,450 $2,745,349
 Earning assets 3,879,562 3,914,323 4,077,538
 Total assets 4,444,825 4,479,182 4,600,258
 Core deposits 3,305,064 3,317,695 3,365,979
 Total deposits 3,634,185 3,565,677 3,564,657
 Long-term debt 62,452 61,829 60,263
 Shareholders' equity 237,710 238,653 280,510
 Common shares outst. 34,849,682 34,899,730 39,989,254
 YTD 2nd qtr 92 vs.
 6/30/92 2nd qtr. 91
 Quarter end balances: (pct.)
 Loans net of unearned
 income $2,745,349 (9)
 Earning assets 4,077,538 (7)
 Total assets 4,600,258 (6)
 Core deposits 3,365,979 6
 Total deposits 3,564,657 (9)
 Long-term debt 60,263 (4)
 Shareholders' equity 280,510 0
 Common shares outstanding 39,989,254 15
 1991
 1st qtr. 2nd qtr. 3rd qtr. 4th qtr.
 Average balances:
 Loans, net of unearned
 income $3,199,884 $3,123,459 $2,943,174 $2,837,905
 Earning assets 4,561,175 4,478,400 4,348,987 4,120,483
 Total assets 5,092,846 5,013,960 4,873,769 4,651,570
 Core deposits 3,106,310 3,142,736 3,212,468 3,259,322
 Total deposits 3,962,148 3,959,411 3,869,133 3,736,874
 Long-term debt 62,824 62,643 62,601 62,462
 Shareholders' equity 298,615 289,740 269,024 241,974
 Weighted average common
 shares outstanding 34,436,913 34,587,848 34,754,194 34,830,218
 Year end 1992
 12/31/91 1st qtr. 2nd qtr.
 Average balances:
 Loans, net of unearned
 income $3,025,046 $2,766,193 $2,757,422
 Earning assets 4,376,048 3,910,625 4,013,594
 Total assets 4,906,834 4,433,015 4,505,873
 Core deposits 3,180,837 3,261,830 3,325,884
 Total deposits 3,881,282 3,560,850 3,560,208
 Long-term debt 62,629 61,918 60,282
 Shareholders' equity 275,921 240,026 275,782
 Weighted average common
 shares outstanding 34,653,650 34,892,377 39,479,248
 YTD 2nd qtr 92 vs.
 6/30/92 2nd qtr. 91
 Average balances: (pct.)
 Loans, net of unearned
 income $2,761,807 (12)
 Earning assets 3,962,109 (10)
 Total assets 4,469,444 (10)
 Core deposits 3,293,857 6
 Total deposits 3,560,529 (10)
 Long-term debt 61,216 (4)
 Shareholders' equity 257,904 (5)
 Weighted average common
 shares outstanding 37,185,812 14
 1991
 1st qtr. 2nd qtr. 3rd qtr. 4th qtr.
 Key performance ratios:
 Return on avg. assets 0.45 pct. (1.31) pct. (3.00) pct.(0.66)pct.
 Return on avg. shareholders'
 equity 7.67 (22.58) (54.26) (12.64)
 Net interest margin,
 taxable equivalent 4.12 4.11 3.91 3.89
 Allowance for loan losses/
 total loans 2.72 2.96 3.42 3.02
 Shareholders' equity/
 total assets 5.80 5.71 5.01 5.35
 Year end 1992
 12/31/91 1st qtr. 2nd qtr.
 Key performance ratios:
 Return on avg. assets (1.12) pct. 0.06 pct. 0.14 pct.
 Return on avg. shareholders'
 equity (20.00) 1.12 2.28
 Net interest margin,
 taxable equivalent 4.01 4.01 4.25
 Allowance for loan losses/
 total loans 3.02 3.17 3.00
 Shareholders' equity/
 total assets 5.35 5.33 6.10
 YTD 2nd qtr 92 vs.
 6/30/92 2nd qtr. 91
 Key performance ratios: (pct.)
 Return on avg. assets 0.10 pct. 1.45
 Return on avg. shareholders'
 equity 1.74 24.86
 Net interest margin,
 taxable equivalent 4.13 0.14
 Allowance for loan losses/
 total loans 3.00 0.04
 Shareholders' equity/
 total assets 6.10 0.39
 BANK SOUTH CORPORATION AND SUBSIDIARIES
 Loan Quality Analysis
 (Dollars in thousands)
 1991
 1st qtr. 2nd qtr. 3rd qtr. 4th qtr.
 Analysis of Allowance for Loan Losses
 Beginning balance $ 89,520 $ 87,017 $ 89,369 $ 97,038
 Provision for loan losses 5,932 19,809 33,903 13,395
 Net loan charge-offs (8,435) (17,457) (26,234) (27,175)
 Ending balance $ 87,017 $ 89,369 $ 97,038 $ 83,258
 Non-Performing Assets
 Non-accrual loans $129,012 $135,297 $141,964 $126,349
 Renegotiated loans 13,801 9,393 4,800 7,721
 Other real estate owned 89,566 82,149 85,325 77,924
 Other non-performing assets --- --- 3,646 3,646
 Total non-performing
 assets $232,379 $226,839 $235,735 $215,640
 Loans 90 days or more past
 due on accrual status $ 27,268 $ 20,268 $ 11,324 $ 12,151
 Year-end 1992
 12/31/91 1st qtr. 2nd qtr.
 Analysis of Allowance for Loan Losses
 Beginning balance $ 89,520 $ 83,258 $ 87,975
 Provision for loan losses 73,039 9,000 8,000
 Net loan charge-offs (79,301) (4,283) (13,704)
 Ending balance $ 83,258 $ 87,975 $ 82,271
 Non-Performing Assets
 Non-accrual loans $126,349 $101,923 $ 78,648
 Renegotiated loans 7,721 7,100 11,529
 Other real estate owned 77,924 66,079 61,276
 Other non-performing assets 3,646 3,646 3,646
 Total non-performing
 assets $215,640 $178,748 $155,099
 Loans 90 days or more past
 due on accrual status $ 12,151 $ 10,321 $ 7,065
 1991
 1st qtr. 2nd qtr. 3rd qtr. 4th qtr.
 Loan Quality Ratios
 Allowance for loan losses
 as a percent of total loans
 at end of period 2.72 pct. 2.96 pct. 3.42 pct. 3.02 pct.
 Allowance for loan losses
 as a percent of non-performing
 loans at end of period 60.93 pct. 61.77 pct. 66.12 pct. 62.10 pct.
 Net loan charge-offs as
 a percent of average
 loans outst. during
 period (annualized) 1.07 pct. 2.24 pct. 3.54 pct. 3.80 pct.
 Non-performing assets as
 a percent of total loans,
 other real estate owned &
 other non-performing assets
 at end of period 7.07 pct. 7.30 pct. 8.06 pct. 7.59 pct.
 Loans 90 days or more
 past due as a percent of
 total loans, other real
 estate owned & other non-
 performing assets at end of
 period 0.83 pct. 0.65 pct. 0.39 pct. 0.43 pct.
 Non-performing assets &
 loans 90 days or more
 past due as a percent of
 total loans, other real
 estate owned & other non-
 performing assets at end of
 period 7.90 pct. 7.95 pct. 8.45 pct. 8.02 pct.
 Year end 1992
 12/31/91 1st qtr. 2nd qtr.
 Loan Quality Ratios
 Allowance for loan losses
 as a percent of total loans
 at end of period 3.02 pct. 3.17 pct. 3.00 pct.
 Allowance for loan losses
 as a percent of non-performing
 loans at end of period 62.10 pct. 80.69 pct. 91.23 pct.
 Net loan charge-offs as
 a percent of average
 loans outst. during
 period (annualized) 2.62 pct. 0.62 pct. 2.00 pct.
 Non-performing assets as
 a percent of total loans,
 other real estate owned &
 other non-performing assets
 at end of period 7.59 pct. 6.28 pct. 5.52 pct.
 Loans 90 days or more
 past due as a percent of
 total loans, other real
 estate owned & other non-
 performing assets at end of
 period 0.43 pct. 0.36 pct. 0.25 pct.
 Non-performing assets &
 loans 90 days or more
 past due as a percent of
 total loans, other real
 estate owned & other non-
 performing assets at end of
 period 8.02 pct. 6.64 pct. 5.77 pct.
 -0- 7/16/92
 /CONTACT: Bo Spalding of Bank South, 404-529-4238/
 (BKSO) CO: Bank South Corporation ST: Georgia IN: FIN SU: ERN


BR-BN -- AT012 -- 9928 07/16/92 16:07 EDT
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