Colonial BancGroup Announces Record First Quarter 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)--April 16, 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 first quarter of 2004. Record net income for the quarter ended March 31, 2004 was $39.1 million, a 10% increase over the $35.6 million recorded for the same period of the previous year. 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 ended March 31, 2004 were $0.31 per share compared to $0.29 for the quarter ended March 31, 2003, a 7% increase. "Our record net income in the first quarter set the stage for a good year. Our Florida franchise is driving impressive growth in deposits and loans. Colonial reached a significant milestone by ending the quarter with over $10 billion in deposits," said Mr. Lowder. Net interest income grew 10% from the first quarter of 2003 to the first quarter of 2004. The net interest margin for the first quarter of 2004 was 3.57%, a 15 basis point increase over the first quarter of 2003 and a 4 basis point increase over the fourth quarter of 2003. "While a number of banks have reported a decline in their net interest margin from the prior year, we are pleased to report a 15 basis point increase in our net interest margin over the prior year," said Mr. Lowder. Colonial's non-time deposits grew $902 million, or 17% from the first quarter of 2003 to the first quarter of 2004 or 18% 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 end of 2003. Total deposits increased 7% from March 31, 2003 and increased 12% annualized from December 31, 2003. "Colonial's outstanding deposit growth demonstrates that the Company's focus on its sales force and growth markets is paying off," said Mr. Lowder. At the end of the quarter, 52% of the Company's non-time deposits were located in Florida and Colonial had become the seventh largest bank, as measured by deposits, in Florida in just seven years. Upon the completion of the pending merger with P.C p.c. (post cibum), n a Latin phrase meaning “after meals”; the abbreviation may be used in prescription writing. .B. Bancorp it is anticipated that 54% of the Company's non-time deposits will be located in Florida. During the first quarter of 2004, Colonial sold $710 million in investment securities earning interest at 4.37% and reinvested the proceeds in securities earning interest at 4.59%. Colonial also paid off $462 million in FHLB FHLB Federal Home Loan Bank advances early which bore interest at an average rate of 4.37%. The advances were refinanced at a blended rate of 1.44% with an average term of one year. These transactions resulted in securities gains of $7.4 million and net losses from 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 of $6.2 million. Noninterest income for the first quarter of 2004, excluding securities gains, increased 4% over the first quarter of 2003. Contributors to noninterest income growth were deposit service charges increasing 21% over the first quarter of 2003, bank-owned life insurance income increasing 79% and losses on sales of other real estate decreasing 70% which more than offset a 57% decline 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 revenue. Noninterest expense, excluding net losses on the early extinguishment of debt, increased 8% over the prior year. Colonial expanded its presence in existing markets by adding 15 new locations over the course of the past fifteen months - 14 new branches and one acquisition. The 15 new locations increased noninterest expense by 3% over the first quarter of 2003. Other increases in noninterest expense relate primarily to salaries and benefits, a new information technology center with expanded capacity, technology enhancements, advertising and legal expenses. Loan balances, excluding mortgage warehouse loans, grew $726 million, or 7%, from March 31, 2003 to March 31, 2004 and $153 million, or 6% annualized, from December 31, 2003 to March 31, 2004. Mortgage warehouse loans decreased 27% from March 31, 2003 and grew 36%, annualized, from December 31, 2003. Colonial recorded another quarter of excellent credit quality ratios 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. at March 31, 2004 of 0.64% of net loans and other real estate compared to 0.68% for the same period in 2003. Net charge-offs for the first quarter were $6 million or 0.21% of net loans and other real estate as compared to 0.20% a year ago. Colonial has continued its planned branch expansion with the opening of six new locations during the first four months of the year in Tampa, Orange City, Ft. Myers (2), Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. and Montgomery. Another eight new locations are planned to open throughout the remainder of the year with six in Florida and one each in 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. and Texas. In addition to these planned de novo [Latin, Anew.] A second time; afresh. A trial or a hearing that is ordered by an appellate court that has reviewed the record of a hearing in a lower court and sent the matter back to the original court for a new trial, as if it had not been previously heard nor decided. branches, the Company will add another 16 locations to its Florida franchise with the expected completion of the P.C.B. Bancorp merger in May. Colonial BancGroup currently operates 280 offices with over $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, Nevada, 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 First 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 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)
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% Change
Statement of Condition March 31, December 31, March 31, March 31,
Summary 2004 2003 2003 '03 to '04
(Dollars in millions)
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Total assets $16,499 $16,273 $15,754 5%
Total loans, net:
Mortgage warehouse loans 1,070 982 1,471 -27%
All other loans 10,759 10,606 10,033 7%
Total earning assets 15,232 15,094 14,682 4%
Core (non-time) deposits 6,126 5,868 5,224 17%
Total deposits 10,050 9,769 9,377 7%
Shareholders' equity 1,230 1,178 1,080 14%
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Three Months Ended % Change
----------------------
Earnings Summary March 31, March 31, March 31,
(In thousands, except per 2004 2003 '03 to '04
share amounts)
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Net interest income
(taxable equivalent) $133,613 $121,724 10%
Provision for loan losses 7,934 8,060 -2%
Noninterest income
excluding security
gains(1) 30,261 29,114 4%
Security gains 7,442 1,770 -
Noninterest expense
excluding loss on ext. of
debt(1) 97,429 89,941 8%
Loss on extinguishment of
debt 6,183 - -
Net Income $39,114 $35,630 10%
EARNINGS PER SHARE:
-------------------
Net Income
Basic $0.31 $0.29 7%
Diluted $0.31 $0.29 7%
Average shares outstanding 127,066 123,735
Average diluted shares
outstanding 128,029 124,367
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KEY RATIOS:
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Net interest margin 3.57% 3.42% 4%
Book value per share $9.67 $8.72 11%
Dividends paid per share $0.145 $0.14 4%
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March 31, December 31, March 31,
Nonperforming Assets 2004 2003 2003
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Total non-performing
assets ratio 0.64% 0.65% 0.68%
Allowance as a percent of
nonperforming loans 235% 240% 236%
Net charge-offs ratio
(annualized):
Quarter to date 0.21% 0.30% 0.20%
Year to date 0.21% 0.31% 0.20%
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(1) Certain reclassifications have been made to the 2003 financial
statements to conform to the 2004 presentations.
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