Colonial BancGroup Announces Record EPS and Net Income.Business Editors MONTGOMERY Montgomery, city, United States Montgomery, city (1990 pop. 187,106), state capital and seat of Montgomery co., E central Ala., near the head of navigation on the Alabama River just below the confluence of the Coosa and Tallapoosa rivers, and in the rich , Ala ALA aminolevulinic acid. Ala alanine. ala (a´lah) pl. a´lae [L.] a winglike process. .--(BUSINESS WIRE)--Jan. 15, 2004 The Colonial BancGroup, Inc. (NYSE NYSE See: New York Stock Exchange :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) ) 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 results for the year ended December December: see month. 31, 2003. Record net income for the year was $149,927,000 compared to $140,025,000 for the year ended December 31, 2002, a 7% increase. The Company also earned record earnings per share for the year ended 2003 of $1.20, a 3% increase over the $1.16 for the previous year. Net income for the fourth quarter 2003 was $37,738,000 compared to net income of $34,661,000 for the fourth quarter of 2002, an increase of 9%. Earnings per share were $0.30 in the fourth quarter of 2003 compared to $0.28 per share in the fourth quarter of 2002, a 7% increase. "Overall, Colonial had a good quarter and a record year," said Mr. Lowder. "Our efforts to enhance our retail banking franchise are bearing fruit. In 2003 we achieved significant core deposit and noninterest income growth as well as good loan growth from the regional banks." Net interest income for the year rose 10% over 2002, while the fourth quarter 2003 was 9% over the prior year and 1% over the prior quarter. The net interest margin for the fourth quarter 2003 was 3.53%, an 18 basis point increase versus the fourth quarter 2002 and an 11 basis point improvement over the third quarter 2003. Colonial's core (non-time) deposits grew $422 million, or 8% during the fourth quarter 2003 and $917 million, or 19%, from December 31, 2002 to December 31, 2003. Total deposits, including time deposits, increased $449 million, or 5%, from December 31, 2002. In addition to core deposit growth, Colonial's retail banking franchise exceeded its targeted cross-sell ratio goal of 3.0 products and services per household and ended the year with a cross-sell ratio of 3.13. "This increase from 2.20 two years ago is another indication of our increasing retail franchise focus. We have targeted a 3.50 cross-sell ratio for 2004 as we continue to emphasize our broad product base and increasing convenience in high growth markets," said Mr. Lowder. In addition, the 2004 roll-out of Colonial's enhanced approach to small business customers should improve the cross-sell ratio as the Company expects the cross-sell ratio for this customer base to be over 4.0. Noninterest income for the year ended 2003 was $127 million, an increase of $25 million, or 25%, over 2002 primarily as the result of increases in revenues from service charges on deposit accounts, financial planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against services, electronic banking services and 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 of 19%, 37%, 23% and 23% respectively. Although mortgage origination income had strong year-over-year growth, with rising mortgage interest rates in the last half of 2003, as expected, noninterest income from mortgage loan originations 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. decreased dramatically in the second half of 2003. From the third quarter to the fourth quarter 2003, income from mortgage loan originations decreased by $2 million. The decrease in mortgage origination income was partially offset by increased gains on sales of securities and ORE of approximately $1.2 million resulting in a decline of $822,000, or 3%, in noninterest income from the third quarter to the fourth quarter 2003. Noninterest expense for 2003 increased 18% over 2002. This increase is primarily due to increases in salaries, incentive related compensation, pension and health benefit costs and expenses related to the strategic repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. of branches within the Company's markets and various other 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. such as legal, insurance, advertising and ORE expenses. For the fourth quarter 2003, noninterest expense increased $2 million over the prior quarter primarily due to the acquisition of Sarasota Sarasota (sâr'əsō`tə), city (1990 pop. 50,961), seat of Sarasota co., SW Fla., on Sarasota Bay; settled c.1884, inc. 1914. Bancorporation, investments in technology and marketing expenses. Loan balances, excluding mortgage warehouse loans, grew $585 million, or 6%, from December 31, 2002 to December 31, 2003 and $341 million, or 13% 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. , from the third to the fourth quarter 2003. The slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in mortgage lending over the latter part of 2003 caused a 41% decline in the Company's mortgage warehouse loan balances from year-end 2002, resulting in a decline of 1% in total loan balances at year-end 2003. Credit quality continues to be a priority for Colonial BancGroup. At year-end December 31, 2003, 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. as a percent of net loans and ORE were 0.65% and net charge-offs as a percent of average net loans were 0.30% for the quarter. The 0.65% nonperforming asset ratio for this period was the lowest the Company had recorded in six quarters. Nonperforming assets were down $6.9 million, or 8%, from September 30, 2003 and down $15.9 million, or 17%, from December 31, 2002. Net charge-offs of $8.7 million for the fourth quarter were down from the third quarter 2003 by 16% and were lower than the fourth quarter 2002 by 30%. Net charge-offs as a percent of average net loans for the year 2003 were 0.31% compared to 0.29% for the prior year. The allowance for loan losses as a percentage of net loans at December 31, 2003 was 1.20% compared to 1.16% at December 31, 2002. The allowance covered nonperforming assets by 184% at year-end 2003 compared to 148% at December 31, 2002. "These improvements in nonperforming assets are significant. We continue to focus on credit quality and these statistics prove that even during challenging economic times Colonial will not sacrifice its traditional focus on credit quality," said Mr. Lowder. Colonial continued its plans to expand in high-growth markets, specifically in Florida, in 2003 with the acquisition of Sarasota Bancorporation in October. This acquisition added a downtown Sarasota location with $161 million in assets, $129 million in loans and $128 million in deposits to Colonial's franchise. Also, during the fourth quarter Colonial announced the signing of a definitive agreement to acquire P.C p.c. (post cibum), n a Latin phrase meaning “after meals”; the abbreviation may be used in prescription writing. .B. Bancorp, Inc. (PCB PCB: see polychlorinated biphenyl. PCB in full polychlorinated biphenyl Any of a class of highly stable organic compounds prepared by the reaction of chlorine with biphenyl, a two-ring compound. ), headquartered in Clearwater, Florida Clearwater is a city located in central Pinellas County, Florida, USA, nearly due west of Tampa. As of the 2000 census, the city had a total population of 108,787; however, according to the 2005 U.S. Census Bureau's estimates, the city's population fell slightly to 108,687. , which currently operates four banking subsidiaries with sixteen offices on the east and west coasts of southern Florida. At December 31, 2003 PCB had approximately $662 million in assets, $475 million in loans and $523 million in deposits. This transaction is expected to be completed by the end of the second quarter of 2004 and based on year-end financials should position Colonial with 44% of assets, 55% of core deposits and 121 locations in the state of Florida. Colonial BancGroup currently operates 275 offices with $16 billion in assets in Florida, 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). , 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. In most newspapers the stock is listed as ColBgp. More detailed information on Colonial BancGroup's quarterly earnings was filed today 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. with the Securities and Exchange Commission and may be obtained from Colonial BancGroup's corporate website at www.colonialbank.com by clicking on the link entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: Colonial BancGroup Announces Record EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. and Net Income or under the Investor Relations Investor relations The process by which the corporation communicates with its investors. area of the website in the section labeled Press Releases. 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 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 2004 and beyond; (ii) increases in competitive pressure in the banking industry; (iii) general economic conditions, either internationally, 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) expected cost savings from recent and future acquisitions are not fully realized; (v) changes in the interest rate environment which may reduce margins; (vi) management's assumptions regarding allowance for loan losses may not be borne by subsequent events; (vii) changes which may occur in the regulatory environment and (viii) other factors more fully discussed in our periodic reports filed with the Securities and Exchange Commission. When used in this Report, the words "believes," "estimates," "plans," "expects," "should," "may," "might," "outlook," "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 % Change
(Dollars in millions, except December 31, December 31, December 31,
per share amounts) 2003 2002 '02 to '03
------------------------------ ------------ ------------ ------------
Total assets $16,273 $15,822 3%
Loans 11,589 11,692 -1%
Total earning assets 15,094 14,716 3%
Core (non-time) deposits 5,868 4,950 19%
Shareholders' equity 1,178 1,071 10%
Book value per share $9.28 $8.66 7%
------------------------------ ------------ ------------ ------------
Twelve Months Ended
-------------------------
Earnings Summary % Change
(In thousands, except per December 31, December 31, December 31,
share amounts) 2003 2002 '02 to '03
---------------------------- ------------ ------------ ------------
Net interest income (taxable
equivalent) $508,935 $464,078 10%
Provision for loan losses 37,378 35,980 4%
Noninterest income 127,449 102,332 25%
Noninterest expense 369,551 312,779 18%
Income from continuing
operations $149,927 $140,871 6%
Net income $149,927 $140,025 7%
----------------------------
EARNINGS PER SHARE:
----------------------------
Income from continuing
operations
Basic $1.20 $1.18 2%
Diluted $1.20 $1.17 3%
Net Income
Basic $1.20 $1.17 3%
Diluted $1.20 $1.16 3%
Average shares outstanding 124,615 119,583
Average diluted shares
outstanding 125,289 120,648
---------------------------- ------------ ------------ ------------
Three Months Ended
-------------------------
Earnings Summary % Change
(In thousands, except per December 31, December 31, December 31,
share amounts) 2003 2002 '02 to '03
---------------------------- ------------ ------------ ------------
Net interest income
(taxable equivalent) $131,339 $120,227 9%
Provision for loan losses 9,202 11,203 -18%
Noninterest income 31,441 29,978 5%
Noninterest expense 95,876 85,510 12%
Income from continuing
operations $37,738 $34,802 8%
Net income $37,738 $34,661 9%
---------------------------
EARNINGS PER SHARE:
---------------------------
Income from continuing
operations
Basic $0.30 $0.28 7%
Diluted $0.30 $0.28 7%
Net Income
Basic $0.30 $0.28 7%
Diluted $0.30 $0.28 7%
Average shares outstanding 126,290 123,683
Average diluted shares
outstanding 127,135 124,371
--------------------------- ------------ ------------ -------------
December 31, December 31,
Nonperforming Assets 2003 2002
-------------------------------------------- ------------ ------------
Total non-performing assets ratio 0.65% 0.78%
Allowance as a percent of nonperforming
loans 240% 191%
Net charge-offs ratio (annualized):
Quarter to date 0.30% 0.44%
Year to date 0.31% 0.29%
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