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CENTURA BANKS INC. REPORTS HIGHER SECOND QUARTER EARNINGS

    ROCKY MOUNT, N.C., July 12 /PRNewswire/ -- Centura Banks Inc. (NYSE: CBC) today reported a 27 percent increase in earnings for the first six months of 1993.  Net income was $16.3 million, or $.98 per fully-diluted share, up from $12.9 million, or $.80 per share, for the same period last year.  For the second quarter, net income increased $2.1 million to $8.7 million, or $.51 per fully-diluted share.
    Return on equity for the first six months of 1993 increased to 15.05 percent from 13.13 percent, and return on assets increased to 1.08 percent from .91 percent.
    The company's financial performance continues to improve because of the acquisition of earning assets through mergers, an increase in loan demand, a significant improvement in the quality of the loan portfolio and continued reduction in nonperforming assets.  Earnings growth also reflects the stable interest rate environment, which continues to produce a strong net interest margin, and an increase in noninterest income from higher mortgage servicing fees and fees from sales of financial services such as insurance, stocks, mutual funds and annuities.
    "We are pleased by our improved financial performance to date, and we are even more committed to further improvement in order to meet or surpass the goals we have set for ourselves for 1993," said Robert R. Mauldin, chairman and president of Centura Banks Inc.  "Our ultimate goal is to be the primary financial services provider for our customers, and this definitely includes more than traditional banking services."
    Centura continues to pursue mergers and acquisitions as an additional way to improve financial performance and achieve growth.  On July 2, Centura announced an agreement to merge with Canton Savings Bank in Canton, N.C. (near Asheville).  In addition, the two previously announced mergers with Granite Savings Bank in Granite Falls, N.C., and First Savings Bank of Forest City are expected to close in the third and fourth quarters, respectively.  The three acquisitions will add approximately $243 million of assets and $26 million of capital.
    With assets of $3.2 billion, Centura Banks Inc. offers a broad range of financial services through its subsidiaries, Centura Bank and Mid-South Bank.  It operates 135 branches in 77 communities throughout North Carolina.
                         FINANCIAL HIGHLIGHTS
                          Three Months Ended         Six Months Ended
                               June 30,                   June 30,
    (In thousands,     1993     1992    Pct.     1993      1992    Pct.
     except per share                  Change                     Change
     data)
    EARNINGS
    Interest income  $56,631  $57,486   (1.5)  $111,056  $113,760  (2.4)
    Interest expense  22,032   25,988  (15.2)    43,357    52,690 (17.7)
    Net interest
     income           34,599   31,498    9.8     67,699    61,070  10.9
    Provision for
     loan losses       1,950    3,215  (39.3)     4,100     8,522 (51.9)
    Noninterest
     income           10,722    8,758   22.4     20,208    18,581   8.8
    Noninterest
     expense          29,752   27,399    8.6     58,106    52,195  11.3
    Income taxes       4,961    3,058   62.2      9,360     6,027  55.3
    Net income       $ 8,658  $ 6,584   31.5    $16,341   $12,907  26.6
    Net interest
     income, taxable
     equivalent      $36,039  $33,064    9.0    $70,593   $64,225   9.9
    AVERAGE BALANCES
    Assets       $3,152,966  $2,914,970  8.2 $3,060,499 $2,838,368  7.8
    Earning
     assets       2,897,252   2,671,997  8.4  2,811,856  2,596,131  8.3
    Loans         2,266,969   2,009,635 12.8  2,192,569  1,970,880 11.2
    Investment
     securities     611,683     557,225  9.8    592,689    551,987  7.4
    Core deposits 2,459,014   2,315,872  6.2  2,406,220  2,260,127  6.5
    Noninterest-
     bearing
     deposits       385,283     337,987 14.0    368,005    321,766 14.4
    Total
     deposits     2,724,342   2,549,029  6.9  2,655,169  2,490,315  6.6
    Shareholders'
     equity         225,302     200,389 12.4    219,000    197,633 10.8
    PERIOD END BALANCES
    Assets      $3,207,516   $2,922,366  9.8 $3,207,516 $2,922,366  9.8
    Earning
     assets      2,966,190   2,678,731  10.7  2,966,190  2,678,731 10.7
    Loans        2,306,889   2,052,468  12.4  2,306,889  2,052,468 12.4
    Investment
     securities    619,211     553,986  11.8    619,211    553,986 11.8
    Core
     deposits   2,502,814    2,341,996   6.9  2,502,814  2,341,996  6.9
    Noninterest-
     bearing
     deposits     412,713      358,275  15.2    412,713    358,275 15.2
    Total
     deposits   2,770,451    2,566,139   8.0  2,770,451  2,566,139  8.0
    Shareholders'
     equity       228,647      201,315  13.6     228,647   201,315 13.6
    PER COMMON SHARE
    Net income-
     primary       $ .53        $  .42  26.2       $1.01     $ .82 23.2
    Net income-
     fully diluted   .51           .41  24.4         .98       .80 22.5
    Cash dividends
     paid           .165          .155   6.5         .33       .31  6.5
    Book value     14.06         12.78  10.0       14.06     12.78 10.0
    Closing market
     price        20.875         18.00  16.0      20.875     18.00 16.0
    FINANCIAL RATIOS (PERCENT)
    Return on
     average
     assets         1.10           .91    19bp      1.08       .91  17bp
    Return on
     average
     shareholders'
     equity        15.41        13.21    220       15.05    13.13   192
    Equity to assets
     (period end)   7.13         6.89     24        7.13     6.89    24
    Equity to assets
     (average)      7.15         6.87     28        7.16     6.96    20
    Risk-based capital
     ratios:
      Tier I
       capital    10.11          9.46    65        10.11     9.46     65
      Total
       capital    11.97         11.41    56        11.97    11.41     56
      Tier I
       leverage
       ratio      7.09           6.74    35         7.09     6.74     35
    bp - Change is measured as difference in basis points.
                          OTHER FINANCIAL DATA
                        Three Months Ended     Six Months Ended
                           June 30,                June 30,
    (In thousands,     1993      1992   Pct.  1993        1992     Pct.
     except per share                  Change                     Change
     data)
    AVERAGE SHARES
     OUTSTANDING
    Primary        16,409,722 15,824,898 3.7 16,248,303 15,798,904   2.8
    Fully diluted  17,165,367 16,707,904 2.7 17,047,540 16,705,083   2.1
    COMPOSITION
     RATIOS (A) (PERCENT)
    Earning assets to
     assets             91.89      91.66 23bp     91.88      91.47  41bp
    Loans to earning
     assets             78.25      75.21  304     77.98      75.92   206
    Interest-bearing
     liabilities to
     earning assets     86.84      87.87 (103)    87.07      88.21 (114)
    Loans to total
     deposits           83.21      78.84  437     82.58      79.14   344
    Non-interest-bearing
     deposits to total
     deposits           14.14      13.26   88     13.86      12.92    94
    ALLOWANCE FOR LOAN LOSSES
    Beginning
     balance          $32,576    $30,002  8.6   $30,994    $26,930  15.1
    Provision for
     loan losses        1,950      3,215 (39.3)   4,100     8,522 (51.9)
    Allowance for merged
     financial
     institution        1,511         --  100.0   2,731       --   100.0
    Charge-offs        (1,424)    (2,898) (50.9) (3,947)  (5,626) (29.8)
    Recoveries            396        706  (43.9)  1,131    1,199   (5.6)
     Net charge-offs   (1,028)    (2,192) (53.1) (2,816)  (4,427) (36.4)
    Ending balance    $35,009    $31,025   12.8  35,009  $31,025    12.8
    COMPOSITION OF RISK ASSETS
    Nonaccural loans                            $18,366   $19,695  (6.7)
    Restructured loans                            1,240       637   94.7
     Nonperforming loans                         19,606    20,332  (3.6)
    Insubstance foreclosed
     property                                     2,066     6,984 (70.4)
    Foreclosed property                          10,337    12,312 (16.0)
     Total foreclosed property                   12,403    19,296 (35.7)
    Nonperforming assets                        $32,009   $39,628 (19.2)
    Loans 90 days past due                      $ 5,237   $ 5,277   (.8)
    ASSET QUALITY RATIOS (B) (PERCENT)
    Net charge-offs to average loans                .26       .45 (19)bp
    Nonaccrual loans to total loans                 .80       .96   (16)
    Nonperforming loans to total loans              .85       .99   (14)
    Nonperforming assets to:
     Loans and total foreclosed property           1.38      1.91   (53)
     Total assets                                  1.00      1.36   (36)
    Allowance for loan losses to total loans        1.52     1.51     1
    Allowance for loan losses to nonperforming
     assets (x)                                    1.09x      .78x   31
    Allowance for loan losses to nonperforming
     loans (x)                                     1.79x     1.53x   26
    (A) Balance sheet amounts used in calculations are based on average balances unless otherwise noted.
    (B) Balance sheet amounts used in calculations are based on period end balances unless otherwise noted.
    (C) Noninterest expense divided by sum of noninterest income plus net interest income, taxable equivalent basis.
    bp - Change is measured as difference in basis points.
                                Three Months Ended June 30,
                                                      As a Pct. of
                                                         Average
                                               Pct.      Assets
                              1993     1992  Change    1993  1992
    (Dollars in thousands)
    NONINTEREST INCOME
    Service charges on
     deposit accounts       $5,280  $ 4,704   12.2    .67    .65
    Credit card and
     related fees              583      558    4.5    .07    .08
    Insurance commissions      655      615    6.5    .08    .08
    Other service charges,
     commissions and
     fees                      352      374   (5.9)   .04    .05
    Fees for trust services  1,290    1,125   14.7    .16    .16
    Mortgage income          2,107    1,042  102.2    .27    .14
    Negative goodwill
     amortization              214      213     .5    .03    .03
    Other noninterest income    28       66  (57.6)   .02    .01
    Noninterest income,
     excluding securities
     transactions           10,509    8,697   20.8   1.34   1.20
    Securities gains, net      213       61  249.2    .02    .01
    Total noninterest
     income                $10,722   $8,758   22.4   1.36   1.21
    NONINTEREST EXPENSE
    Salaries and overtime  $12,123  $10,413   16.4   1.54   1.44
    Fringe benefits and
     other personnel costs   3,017    2,846    6.0    .38    .39
    Occupancy                1,896    1,790    5.9    .24    .25
    Equipment                2,054    2,013    2.0    .26    .28
    Foreclosed real estate
     losses and related
     operating expense         544      387   40.6    .07    .05
    Marketing                1,275    1,172    8.8    .16    .16
    Professional fees        1,108      779   42.2    .14    .11
    Other administrative     1,152    1,120    2.9    .15    .15
    FDIC insurance           1,428    1,356    5.3    .18    .19
    Deposit intangible
     and goodwill amortization 489      784  (37.6)   .06    .11
    Office supplies, postage
     and telephone           2,156    1,714   25.8    .27    .24
    Other operating          2,510    3,025  (17.0)   .33    .41
    Total noninterest
     expense               $29,752  $27,399    8.6   3.78   3.78
    OTHER PERFORMANCE RATIOS(A)
    Efficiency Ratio(C)    63.63pct 65.51pct (188)bp
    Net interest income
     analysis-taxable
     equivalent:
    Selected average
     yields/rates:
     Loans                  8.11     9.04     (93)
     Taxable securities     7.37     8.24     (87)
     Tax-exempt securities 10.29    10.67     (38)
     Earning assets         7.99     8.81     (82)
     Interest checking      2.23     3.11     (88)
     Money market           2.62     3.38     (76)
     Savings                2.66     3.45     (79)
     Time                   4.28     5.19     (91)
     Total interest-bearing
      deposits              3.51     4.45     (94)
     Total interest-bearing
      liabilities           3.51     4.45     (94)
     Interest rate spread   4.48     4.36      12
     Net interest margin    4.94     4.90       4
                                     Six Months Ended June 30,
                                                      As a Pct. of
                                                         Average
                                               Pct.      Assets
                              1993     1992  Change    1993  1992
    (Dollars in thousands)
    NONINTEREST INCOME
    Service charges on
     deposit accounts      $10,225   $8,995   13.7   .67       .64
    Credit card and
     related fees            1,180    1,132    4.2   .08       .08
    Insurance commissions    1,465    1,242   18.0   .10       .09
    Other service charges,
     commissions and
     fees                      805      791    1.8    .05      .06
    Fees for trust services  2,581    2,250   14.7    .17      .16
    Mortgage income          2,987    1,473  102.8    .20      .10
    Negative goodwill
     amortization              428      428    --     .03      .03
    Other noninterest income   243       31  683.9    .01       --
    Noninterest income,
     excluding securities
     transactions           19,914   16,342   21.9   1.31     1.16
    Securities gains, net      294    2,239  (86.9)   .02      .16
    Total noninterest
     income                 $20,208 $18,581    8.8   1.33     1.32
    NONINTEREST EXPENSE
    Salaries and overtime  $23,704  $20,349   16.5   1.56    1.44
    Fringe benefits and
     other personnel costs  6,060     5,590    8.4    .40    .40
    Occupancy               3,763     3,517    7.0    .25    .25
    Equipment               4,126     3,999    3.2    .27    .28
    Foreclosed real estate
     losses and related
     operating expense        771       788   (2.2)   .05    .06
    Marketing               2,384     2,052   16.2    .16    .15
    Professional fees       2,218     1,457   52.2    .15    .10
    Other administrative    2,169     2,052    5.7    .14    .15
    FDIC insurance          2,855     2,711    5.3    .19    .19
    Deposit intangible
     and goodwill
     amortization           1,196     1,312   (8.8)   .08    .09
    Office supplies, postage
     and telephone          4,252     3,369   26.2    .28    .24
    Other operating         4,608     4,999   (7.8)   .30    .35
    Total noninterest
     expense               $58,106  $52,195   11.3   3.83   3.70
    OTHER PERFORMANCE RATIOS(A)
    Efficiency Ratio(C)    63.99pct 63.03pct   96bp
    Net interest income
     analysis-taxable
     equivalent:
    Selected average
     yields/rates:
     Loans                  8.26     9.21     (95)
     Taxable securities     7.44     8.17     (73)
     Tax-exempt securities 10.37    10.59     (22)
     Earning assets         8.10     8.98     (88)
     Interest checking      2.28     3.12     (84)
     Money market           2.67     3.54     (87)
     Savings                2.71     3.56     (85)
     Time                   4.33     5.42    (109)
     Total interest-bearing
      deposits              3.56     4.63    (107)
     Total interest-bearing
      liabilities           3.57     4.63    (106)
     Interest rate spread   4.53     4.35      18
     Net interest margin    4.99     4.89      10
                         QUARTERLY FINANCIAL TRENDS
                     1993                     1992              2nd Qtr
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Date:Jul 12, 1993
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