Colonial BancGroup Announces Record Earnings Per Share of $1.33 and a 17% Increase in Net Income Over 2003.MONTGOMERY, Ala ALA aminolevulinic acid. Ala alanine. ala (a´lah) pl. a´lae [L.] a winglike process. . -- 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 E. Lowder, announced today that the Company had record earnings for 2004 of $1.33 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, an 11% increase over the $1.20 recorded in the previous year. Net income for the year was $175.3 million, a 17% increase over the $149.9 million recorded in 2003. Net income for the fourth quarter 2004 was $47.2 million compared to net income of $37.7 million for the fourth quarter of 2003, an increase of 25%. Earnings per share were $0.35 in the fourth quarter of 2004 compared to $0.30 per share in the fourth quarter of 2003, a 17% increase. "Colonial's record performance in 2004 clearly demonstrates the results of locating the franchise in some of the most attractive and fastest growing markets in America," said Mr. Lowder. Net interest income for the year increased by 15% over 2003, while net interest income for the fourth quarter of 2004 increased 5.4% over the prior quarter. The net interest margin increased to 3.63% for 2004, an 18-basis-point increase over 2003 and was 3.68% for the fourth quarter of 2004, a four basis point improvement over the third quarter of 2004, representing the fifth consecutive quarter of net interest margin expansion. Colonial's average non-time deposits grew by $1.4 billion, or 26% (21% excluding the effects of the acquisition of 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. )), from 2003, and by $284 million, or 16% 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 quarter to the fourth quarter of 2004. Total deposits increased by $1.9 billion, or 19% (14% excluding PCB), from December 31, 2003 and by $464.5 million or 16.6% annualized from September 30, 2004. "Colonial's retail banking franchise gained tremendous momentum this year. Finishing the year with 21% internal growth in average non-time deposits and with 57% of the Company's non-time deposits in Florida represent significant milestones for Colonial," said Mr. Lowder. Total loans, excluding mortgage warehouse loans, increased by $1.1 billion, or 10.7% (6.1% excluding PCB), from December 31, 2003 to December 31, 2004. Total loans, excluding mortgage warehouse loans, grew by $232 million or 8% annualized from September 30, 2004 to December 31, 2004. Mortgage warehouse loans increased 13.5% from December 31, 2003 and by 24.3% annualized from September 30, 2004. "We are pleased with our loan growth and are extremely proud that we achieved good growth while improving upon already excellent credit quality. Colonial's nonperforming asset Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. ratio reached a record low of 0.29% at December 31, 2004, improving by four basis points from its previous record low at September 30, 2004. We have consistently improved our nonperforming asset ratio every quarter since the third quarter of 2003. Net charge-offs of 0.19% of average loans for 2004 is expected to be among the lowest reported for banks our size," said Mr. Lowder. "Additionally, we believe that Colonial's primarily floating or adjustable rate Adjustable rate Applies mainly to convertible securities. Refers to interest rate or dividend that is adjusted periodically, usually according to a standard market rate outside the control of the bank or savings institution, such as that prevailing on Treasury bonds or notes. loan portfolio positions the bank well for increasing interest rates in the months ahead," added Mr. Lowder. Noninterest income for the year ended 2004 was $138 million, an increase of 3.8% over 2003. Increases in deposit service charges, fees for electronic banking services, gains on sales of securities and other income were offset by decreases in 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 and 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 revenues. Noninterest income for the fourth quarter 2004 increased 2.9% over the third quarter primarily due to an increase in income from the purchase of additional bank owned life insurance and net gains on the sale of property held for sale and ORE. Noninterest expense for 2004 increased 12.6% over the prior year, excluding net losses on early extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt. Colonial enhanced its franchise by adding 30 new locations including 16 through acquisitions during 2004. These new locations and acquisition related expenses accounted for one-third of the total increase in noninterest expense. Noninterest expense for the fourth quarter 2004 increased 6.8% over third quarter 2004, excluding losses on early extinguishment of debt. Increases in noninterest expense, other than for new branches, for the year and the quarter relate to salaries and benefits, legal costs, occupancy expenses for branch closures, technology initiatives and accounting fees associated with Sarbanes-Oxley Section 404 compliance. In December 2004, Colonial prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. $50 million of a Federal Home
Loan Bank (FHLB FHLB Federal Home Loan Bank ) advance bearing interest at 5.69% resulting in a
prepayment Prepayment1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. fee of $1.25 million. As previously announced, in the first quarter of 2004, Colonial prepaid $462 million in FHLB advances resulting in a prepayment fee of $6.18 million. Total prepayment fees incurred in 2004 were $7.4 million. Colonial also announced today, in a separate release, that it has entered into a definitive agreement to acquire First Federal Savings Bank Noun 1. federal savings bank - a federally chartered savings bank FSB savings bank - a thrift institution in the northeastern United States; since deregulation in the 1980s they offer services competitive with many commercial banks of Lake County (FFLC). FFLC, headquartered in Leesburg, Florida Leesburg is a city in Lake County, Florida, United States. The population was 15,956 at the 2000 census. As of 2005, the population recorded by the U.S. Census Bureau is 19,086.[1]. , had total assets of $1 billion, total deposits of $795 million and total loans of $884 million at December 31, 2004. FFLC currently operates 16 full-service offices in Lake, Sumter, Citrus and Marion counties Marion County is the name of seventeen counties in the United States of America, mostly named for General Francis Marion:
Central Florida is the central region of the United States state of Florida, on the East Coast. . Once completed, this transaction coupled with Colonial's pending acquisition of Union Bank of Florida (Broward County), will make Colonial the fifth largest commercial bank in Florida with 161 branches, approximately $7.4 billion in deposits and $11.0 billion in assets in that state. Colonial BancGroup currently operates 292 branches 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 and Texas with $18.9 billion in assets. The Company's common stock 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 Reports Fourth Quarter Earnings 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 2005 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 out by subsequent events; (vii) changes which may occur in the regulatory environment (viii) costs of certain strategic initiatives and (ix) 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)
% Change
Statement of Condition Summary December 31, December 31, December 31,
(Dollars in millions) 2004 2003 '03 to '04
------------------------------ ------------ ------------ ------------
Total assets $18,897 $16,273 16%
Total loans, net:
Mortgage warehouse loans 1,115 982 14%
All other loans 11,743 10,606 11%
Securities available for sale
and investment securities 3,654 3,111 17%
Non-time deposits 7,331 5,868 25%
Total deposits 11,647 9,769 19%
Shareholders' equity 1,394 1,178 18%
------------------------------ ------------ ------------ ------------
Twelve Months Ended % Change
Earnings Summary -------------------------
(In thousands, except per December 31, December 31, December 31,
share amounts) 2004 2003 '03 to '04
------------------------------- ------------ ------------ ------------
Net Income:
Net interest income (taxable
equivalent) $586,326 $508,935 15%
Provision for loan losses 26,994 37,378 -28%
Noninterest income excluding
security gains(losses)(1) 130,483 128,209 2%
Security gains(losses), net 7,544 4,813 57%
Noninterest expense excluding
loss on ext. of debt(1) 422,434 375,124 13%
Loss on early extinguishment
of debt 7,436 - -
Net Income $175,348 $149,927 17%
EARNINGS PER SHARE:
-------------------------------
Net Income
Basic $1.34 $1.20 12%
Diluted $1.33 $1.20 11%
Average shares outstanding 131,144 124,615
Average diluted shares
outstanding 132,315 125,289
------------------------------- ------------ ------------ ------------
KEY RATIOS:
-------------------------------
Net interest margin 3.63% 3.45% 5%
Book value per share $10.41 $9.28 12%
Dividends paid per share $0.58 $0.56 4%
------------------------------- ------------ ------------ ------------
Three Months Ended % Change
Earnings Summary -------------------------
(In thousands, except per December 31, December 31, December 31,
share amounts) 2004 2003 '03 to '04
------------------------------- ------------ ------------ ------------
Net Income:
Net interest income (taxable
equivalent) $158,332 $131,339 21%
Provision for loan losses 5,388 9,202 -41%
Noninterest income excluding
security gains(losses)(1) 33,893 31,973 6%
Security gains(losses), net 127 954 -87%
Noninterest expense excluding
loss on ext. of debt(1) 113,762 97,362 17%
Loss on early extinguishment
of debt 1,253 - -
Net Income $47,227 $37,738 25%
EARNINGS PER SHARE:
-------------------------------
Net Income
Basic $0.35 $0.30 17%
Diluted $0.35 $0.30 17%
Average shares outstanding 133,755 126,290
Average diluted shares
outstanding 135,017 127,135
------------------------------- ------------ ------------ ------------
KEY RATIOS:
-------------------------------
Net interest margin 3.68% 3.53% 4%
Book value per share $10.41 $9.28 12%
Dividends paid per share $0.145 $0.14 4%
------------------------------- ------------ ------------ ------------
December 31, December 31,
Nonperforming Assets 2004 2003
-------------------------------------------- ------------ ------------
Total non-performing assets ratio 0.29% 0.65%
Allowance as a percent of nonperforming
loans 548% 240%
Net charge-offs ratio:
Quarter to date (annualized) 0.12% 0.30%
Year to date 0.19% 0.31%
-------------------------------------------- ------------ ------------
(1) Certain reclassifications have been made to the 2003 financial
statements to conform to the 2004 presentations.
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