Colonial BancGroup Announces Record 2nd Quarter.Business Editors The Colonial BancGroup, Inc. Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. E. Lowder, announced today record earnings for the second quarter ended June 30, 2002 of $36.1 million or $0.30 per share. This represents an 18% increase in earnings and a 15% increase in 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 over the second quarter of 2001. Return on average assets was 1.08% and return on average equity was 14.78% for the quarter. Cash basis return on average tangible assets Tangible Asset An asset that has a physical form such as machinery, buildings and land. Notes: This is the opposite of an intangible asset such as a patent or trademark. Whether an asset is tangible or intangible isn't inherently good or bad. was 1.12% and cash basis return on average tangible equity was 18.74%. For the six months ended June 30, 2002, net income was $70.2 million, an 18% increase over the same period in 2001, translating into $0.59 per share for the six months ended June 30, 2002, a 14% increase over earnings per share in the same period of 2001. Asset quality remains very good and has improved over the first quarter of 2002, with 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. totaling $62.4 million or 0.60% of loans and other real estate. This compares with $67.3 million or 0.66% of loans and other real estate at March 31, 2002. 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. net charge-offs were 0.19% of average loans for the second quarter of 2002 and 0.22% for the year to date. "We believe these asset quality statistics again will be among the best for banks with over $10 billion in assets," said Mr.Lowder. Loan provision expense for the quarter was $8.5 million compared to $7.5 million in the second quarter of 2001, and $9.5 million in the first quarter of 2002. Loan balances increased $134 million from March 31, 2002 to June 30, 2002. Colonial's regional bank loans increased $110 million and volume in Colonial's mortgage warehouse unit increased $55 million. These increases were partially offset by a decrease of $31 million in the bank's single family real estate portfolio of mostly adjustable rate mortgage This article is about the US mortgage type. For an international perspective, see Variable rate mortgage. An adjustable rate mortgage (ARM) is a mortgage loan where the interest rate on the note is periodically adjusted based on an index. loans. "We continue to focus on our strengths, lending to solid customers with sound collateral, primarily real estate. As a result of that strategy we reported for this quarter the best earnings in the company's history. We believe the investments we are making in expanding our existing markets, improving technology and delivery systems and enhancing our products will continue to build on that sound earnings basis," said Mr. Lowder. Core (non-time) deposits continue to increase, reflecting Colonial's emphasis on building customer relationships in its growth markets. Average core deposits increased $265 million or 27%, annualized, in the second quarter of 2002 compared to the first quarter of 2002 and $587 million or 16%, compared to the second quarter of 2001. Included in these increases were approximately $220 million in non-time deposits from the First Mercantile Relating to trade or commerce; commercial; having to do with the business of buying and selling; relating to merchants. A mercantile agency is an individual or company in the business of collecting data about the financial status, ability, and credit of individuals acquisition in the Texas market completed on March 28, 2002. Colonial's Florida markets continue to provide the strongest growth with core deposits increasing 19%, annualized, from the first quarter of 2002, and 20%, annualized, from the second quarter of 2001. Total noninterest income, excluding security gains, increased $1.3 million or 6% in the second quarter of 2002 compared to the same period in 2001. The principal areas of increase include mortgage origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real income up $809,000 or 39%, electronic banking services up $479,000 or 29%, cash management services up $169,000 or 24% and wealth management services up $152,000 or 7%. Noninterest expenses were $76.4 million in the current quarter compared to $71.8 million in the second quarter of 2001, reflecting the Company's continued investment in retail banking and information technology. This increase also includes approximately $2.7 million in additional operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. from the First Mercantile acquisition. The efficiency ratio continued to improve to 54.55% from 56.53% in the second quarter of 2001. During the quarter, Colonial announced the signing of a definitive agreement to acquire Palm Beach National Holding Company with approximately $356 million in assets and eight branch locations in Palm Beach County, Florida Palm Beach County is a county located in the state of Florida. As of 2007, the county had a population of 1,351,236 according to the University of Florida, Bureau of Economic and Business Research[1]. , in a stock for stock transaction valued at approximately $105.5 million. Colonial BancGroup currently operates 269 offices with $13.7 billion in assets in 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, Georgia Georgia, country, Asia Georgia (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. , Nevada, Tennessee Tennessee, state, United States Tennessee (tĕn`əsē', tĕn'əsē`), state in the south-central United States. and Texas and is traded on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol CNB CNB Czech National Bank CNB Centro Nacional de Biotecnologia CNB City National Bank CNB Citizens National Bank CNB Croatian National Bank CNB Chloronitrobenzene CNB Corresponsales No Bancarios (Spanish, Colombia) . In most newspapers the stock is listed as ColBgp. More detailed information on Colonial BancGroup's quarterly earnings is available on the company's website at www.colonialbank.com or in the Current Report on 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 today with the Securities and Exchange Commission. Copies of the Form 8-K are also available from the contact persons listed above. This release and the above referenced Current Report on Form 8-K of which this release forms a part contain "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. " within the meaning of the federal securities laws. The forward-looking statements in this release are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by the statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among other things, the following possibilities; (i) an inability of the company to realize elements of its strategic plans for 2002 and beyond; (ii) increases in competitive pressure in the banking industry; (iii) general economic conditions, either nationally or regionally, that are less favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. than expected; (iv)and changes which may occur in the regulatory environment. When used in this Report, the words "believes," "estimates,", "plans," "expects," "should," "may," "might," "outlook," and "anticipates," and similar expressions as they relate to BancGroup (including its subsidiaries) or its management are intended to identify forward-looking statements. Forward-looking statements speak only as to the date they are made. BancGroup does not undertake 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.
THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS (Unaudited)
Statement of Condition Summary
(Dollars in millions, except per share amounts)
% Change
June 30, December 31, June 30, June 30,
2002 2001 2001 '01 to '02
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Total Assets $13,673 $13,185 $12,570 9%
Loans 10,370 10,368 10,003 4%
Total earning assets 12,764 12,301 11,796 8%
Deposits 8,654 8,323 8,540 1%
Shareholders' equity 961 865 826 16%
Book value per share $8.13 $7.50 $7.35 11%
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Earnings Summary
(Dollars in thousands, except per share amounts)
----------------------------------------------------------------------
Six Months Ended % Change Three Months Ended % Change
---------------- ------------------
June 30, June 30, June 30, June 30, June 30, June 30,
2002 2001 '01 to '02 2002 2001 '01 to '02
Net interest income
(taxable
equivalent) $227,249 $209,124 9% $116,862 $105,601 11%
Provision for
loan losses 17,974 16,942 6% 8,496 7,478 14%
Noninterest
income 46,358 43,042 8% 23,428 22,204 6%
Noninterest
expense 146,908 140,189 5% 76,400 71,829 6%
Net
income $70,235 $59,729 18% $36,055 $30,534 18%
EARNINGS PER SHARE:
Net Income
Basic $0.59 $0.52 14% $0.30 $0.27 11%
Diluted $0.59 $0.52 14% $0.30 $0.26 15%
Average shares
outstanding 117,554 114,598 119,702 114,711
Average diluted
shares
outstanding 118,747 115,731 120,956 115,886
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June 30, December 31, June 30,
Nonperforming Assets 2002 2001 2001
----------------------------------------------------------------------
Total non-performing
assets ratio 0.60% 0.64% 0.71%
Allowance as a percent
of nonperforming loans 325% 239% 194%
Net charge-offs ratio
(annualized):
Quarter to date 0.19% 0.34% 0.28%
Year to date 0.22% 0.28% 0.22%
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