Colonial BancGroup Announces Record Earnings.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)--Oct. 18, 1999-- 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 today announced earnings for the quarter ended September 30, 1999. Net income for the Montgomery based bank holding company was $30,436,000 compared to $11,444,000 for the previous year, a 166% increase. 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 for the quarter were $0.27 compared to $0.10 for the same period in 1998, a 170% increase. For the third quarter the company's return on average equity was 17.78% compared to 6.88% for the same period in 1998 and return on assets Return on assets (ROA) Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). was 1.13% for the quarter compared to 0.48% for the same period of the previous year. The third quarter of 1998 included a write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of mortgage servicing Mortgage servicing The collection of monthly payments and penalties, record keeping, payment of insurance and taxes, and possible settlement of default , involved with a mortgage loan. rights and acquisition related charges totaling $14.7 million after-tax. During the third quarter of 1999, the Company completed the sale of its Dalton, Georgia Dalton is a city in Whitfield County, Georgia, United States. It is the county seat of Whitfield CountyGR6 and the principal city of the Dalton, Georgia Metropolitan Statistical Area, which encompasses all of both Murray and Whitfield counties. branches and recognized an after-tax gain on the sale of $3.8 million. Also during the third quarter of 1999, Colonial Mortgage Company, a subsidiary of Colonial Bank Colonial Bank, a subsidiary of Colonial Bancgroup Inc. NYSE: CNB, is headquartered in Montgomery, Alabama. Colonial Bank has 300 branches in the states of Alabama, Georgia, Florida, Nevada and Texas. Its common stock is traded on the NYSE under the symbol CNB. , incurred an after tax loss of $2.7 million compared with after tax income of $1.8 million and $1.6 million during the first and second quarters of 1999, respectively. All financial results have been restated for material acquisitions accounted for as poolings of interests. Net income for the nine months ended September 30, 1999 was $88,847,000 compared to $59,092,000 for the same period in 1998, a 50% increase. Diluted earnings per share for the first nine months of 1999 was $0.79, a 49% increase over 1998 earnings per share of $.53. Also, for the year to date 1999 the company's return on assets was 1.13% and return on equity was 17.80% compared to 0.89% and 12.37%, respectively, for the same period in 1998. Loans increased $265.6 million from June 30, 1999 to September 30, 1999 representing a 16.8% 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. internal loan growth. Year to date internal loan growth has been 15.5%. Net interest income increased by $1.3 million in the September quarter from $94.5 million in the June quarter reflecting the above increase in loans and the increase in net interest margin from 3.96% to 3.98%. Asset quality remains excellent with non-performing assets at 0.45% of loans and other real estate owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most down from 0.60% at December 31, 1998 and 0.72% at September 30, 1998. Net charge-offs year to date remain among the lowest for Colonial's peer group at 0.20% of loans compared to 0.17% in 1998. During the third quarter of 1999, Colonial made several strategic decisions regarding Colonial Mortgage Company. The company announced that the "wholesale 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 " division of Colonial Mortgage Company, a subsidiary of Colonial Bank, would be sold to Union Planters Planters is an American snack food company under Kraft Foods manufacturing, best known for its nuts and the Mr. Peanut icon that symbolizes them. Started by Italian immigrants Amedeo Obici and Mario Peruzzi in Wilkes-Barre, Pennsylvania, in 1906, it was incorporated in 1908 Corporation and the sale was completed on October 8th. Colonial Mortgage's 13 retail offices were merged into the regional bank structure of Colonial Bank to increase the company's focus on providing a broad range of mortgage products and services to retail bank customers. In order to further streamline the operations of Colonial Mortgage, its other units such as servicing, accounting and secondary marketing will be merged into the corresponding holding company areas such as operations, accounting and treasury. Colonial BancGroup currently operates 241 offices 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. , Tennessee Tennessee, state, United States Tennessee (tĕn`əsē', tĕn'əsē`), state in the south-central United States. , Texas and Nevada 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. -0-
THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA (Unaudited)
(Dollars in thousands, except per share amounts)
% Change
Sept. 30, Dec. 31, Sept. 30, Sept. 30,
1999 1998 1998(a) 1998 to
1999
----------- ---------- ----------- ----
Statement of Condition Summary
Total assets $10,620,924 $10,456,285 $9,550,363 11%
Loans, net of unearned income 7,856,226 7,110,295 6,703,538 17%
Total earning assets 9,635,041 9,444,756 8,653,381 11%
Deposits 7,601,210 7,446,153 6,837,736 11%
Shareholders' equity 680,743 639,807 659,482 3%
Book value per share $6.08 $5.77 $5.95 2%
Nine Months Ended September 30,
% Change
1999 1998(a) 1998 to 1999
---- ------- ------------
Earnings Summary
Net interest income
(taxable equivalent) $283,644 $257,159 10%
Provision for loan losses 19,468 12,003 62%
Noninterest income 105,446 94,510 12%
Noninterest expense 226,215 244,450 -7%
Net income 88,847 59,092 50%
Average shares outstanding 111,580 109,955
Average diluted shares
outstanding 113,229 112,633
Earnings per share(b):
Net income:
Basic $0.80 $0.54 48%
Diluted $0.79 $0.53 49%
Selected Ratios:
Net income to:
Average assets 1.13% 0.89%
Average shareholders' equity 17.80% 12.37%
Net interest margin 3.96% 4.25%
Efficiency ratio 58.14% 69.51%
Non interest income
(annualized) to average
assets 1.33% 1.41%
Non interest expense
(annualized) to average
assets 2.86% 3.65%
Equity to assets 6.41% 6.91%
Tier one leverage 6.40% 6.84%
Three Months Ended September 30,
% Change
1999 1998(a) 1998 to 1999
---- ------- ------------
Earnings Summary
Net interest income
(taxable equivalent) $96,557 $89,068 8%
Provision for loan losses 7,014 4,088 72%
Noninterest income 37,434 32,437 15%
Noninterest expense 77,843 98,567 -21%
Net income 30,436 11,444 166%
Average shares outstanding 111,815 110,467
Average diluted shares
outstanding 113,433 112,830
Earnings per share(b):
Net income:
Basic $0.27 $0.10 170%
Diluted $0.27 $0.10 170%
Selected Ratios:
Net income to:
Average assets 1.13% 0.48%
Average shareholders' equity 17.78% 6.88%
Net interest margin 3.98% 4.15%
Efficiency ratio 58.10% 81.12%
Non interest income
(annualized) to average
assets 1.41% 1.37%
Non interest expense
(annualized) to average
assets 2.93% 4.16%
Equity to assets
Tier one leverage
Sept. 30, Dec. 31, Sept. 30,
1999 1998 1998(a)
-------- ------- --------
Nonperforming Assets
Total non-performing assets
ratio 0.45% 0.60% 0.72%
Loan loss reserve ratio 1.17% 1.18% 1.15%
Allowance as a percent of
nonperforming loans 311% 245% 203%
Net charge-offs ratio
(annualized):
Quarter to date 0.17% 0.49% 0.23%
Year to date 0.20% 0.26% 0.17%
(a) Restated financial results above reflect the business
combinations with FirstBank, First Macon Bank & Trust, Prime Bank
of Central Florida and Interwest Bancorp. These mergers were
accounted for as poolings of interests and the financial results
have been restated accordingly.
(b) Restated to reflect the two-for-one stock split effected in the
form of a 100% stock dividend paid on August 14, 1998.
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