First Tennessee reports record earnings for third quarter 1995.MEMPHIS Memphis, city, ancient Egypt Memphis (mĕm`fĭs), ancient city of Egypt, capital of the Old Kingdom (c.3100–c.2258 B.C.), at the apex of the Nile delta and 12 mi (18 km) from Cairo. , Tenn.--(BUSINESS WIRE)--Oct. 16, 1995--First Tennessee Tennessee, state, United States Tennessee (tĕn`əsē', tĕn'əsē`), state in the south-central United States. National Corp. (First Tennessee This article or section has multiple issues: * Its neutrality is disputed. * It reads like an advertisement and needs to be rewritten in a neutral point of view. * It may require general cleanup to meet Wikipedia's quality standards. ) reported record earnings of $43.8 million for the third quarter of 1995, an increase of 17 percent from the $37.6 million for the third quarter of 1994. Earnings per share for the third quarter increased to $1.30 compared with $1.11 for the third quarter of 1994. Return on average assets for the quarter ended Sept. 30, 1995, improved to 1.50 percent, and return on average equity improved to 21.32 percent. These financial ratios compare with return on average assets of 1.42 percent and return on average equity of 19.41 percent for the quarter ended Sept. 30, 1994. For the first nine months, net income totaled $119.2 million, a 4 percent increase from $114.2 million for the first nine months of 1994. Earnings per share for the nine month period were $3.51 in 1995 compared to $3.34 in 1994. For the nine month period, return on average assets was 1.43 percent and return on average equity was 19.84 percent, compared with 1.45 percent and 20.21 percent, respectively, for the same period in 1994. Ralph Horn, president and chief executive officer, said, "We are pleased to report another quarter of record earnings. In addition, we achieved an unprecedented 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). of 1.50 percent and a return on equity in excess of 21 percent. These results were attained at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. with double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. loan growth in all loan categories and improving results in the majority of our business lines." Noninterest income Total noninterest income (excluding securities gains in both periods), which accounted for 56 percent of total revenues in the quarter, was $126.4 million, a 20 percent increase from the previous year. All categories of noninterest income, excluding securities gains, increased from the 1994 third quarter levels. Mortgage banking noninterest income, as a result of increased originations and the benefit of new accounting rules related to originated servicing rights, increased 29 percent. Noninterest income in the bond division rose 16 percent, reflecting increased volumes over 1994. Noninterest income from trust services increased 25 percent, demonstrating continued growth in managed assets and the benefits of an accounting change earlier in 1995; bank card income, which includes credit card and merchant processing fees, increased 17 percent solely due to a $1.5 million increase in merchant processing fees from an expansion in our customer base; and income from deposit transactions and cash management increased 8 percent. During the third quarter of 1995, First Tennessee's mortgage banking entities originated $2.5 billion compared with $1.4 billion in 1994. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. 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. in 1995 were $5.0 billion compared to $5.8 billion in 1994. At Sept. 30, 1995, the combined servicing portfolio was $15.4 billion compared with $14.5 billion at Sept. 30, 1994. Year-to-date, total noninterest income, excluding securities gains in both periods, increased 5 percent from 1994 levels to $354.8 million. For the nine month period, noninterest income in mortgage banking was relatively flat while noninterest income in the bond division decreased four percent, primarily due to unusually favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. environments experienced by both business units in the first quarter of 1994. Additionally, bank card income increased 21 percent, trust service income increased 31 percent, and income from deposit transactions and cash management increased 12 percent over the same nine month period in 1994. Net Interest Earnings For the third quarter of 1995, net interest income, on a fully taxable equivalent basis, was $99.8 million, which was relatively flat compared with the previous year. Average earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin , net of unearned income Unearned Income Any income that comes from investments and other sources unrelated to employment services. Notes: Examples of unearned income include interest from a savings account, bond interest, tips, alimony, and dividends from stock. , increased 11 percent from the previous year and included an 18 percent increase in average loans, net of unearned income, with a 2 percent decrease in investment securities. The growth in earning assets was supported by a 32 percent increase in purchased funds and a 5 percent increase in interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid core deposits. The net interest margin decreased 44 basis points to 3.85 percent from the third quarter of 1994, but has remained relatively stable during 1995. The six basis point decrease in the margin from the second quarter to the third quarter reflects the impact on the margin of increased activities in the bond division and in the mortgage warehouse, which were partially mitigated mit·i·gate v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates v.tr. To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve. v.intr. To become milder. by improvement in the "core" (bank) margin. For the first nine months of 1995, net interest income, on a fully taxable equivalent basis, decreased $12.6 million or 4 percent, from the same period last year. Noninterest operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. Total noninterest 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. increased 4 percent from the third quarter of 1994. Employee compensation, incentives and benefits, the largest component of noninterest operating expense, increased 9 percent. The effect of the lower FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). premiums (from $.23 to $.04 per $100 of deposits) and the refund TO REFUND. To pay back by the party who has received it, to the party who has paid it, money which ought not to have been paid. 2. On a deficiency of assets, executors and administrators cum testamento annexo, are entitled to have refunded to them legacies from the FDIC reduced deposit insurance expense $4.4 million in the third quarter. In addition, current legislative discussion associated with the undercapitalized Undercapitalized A business has insufficient capital to carry out its normal functions. undercapitalized Of, relating to, or being a firm that has insufficient long-term equity to support its assets. Savings Association Insurance Funds Savings Association Insurance Fund (SAIF) A government organization that replaced the Federal Savings and Loan Insurance Corporation as the provider of deposit insurance for thrift institutions. (SAIF) could potentially result in a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. assessment on First Tennessee's SAIF-insured deposits. The timing of this assessment may be as early as the fourth quarter of 1995 and the maximum pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta cost to First Tennessee is estimated to be approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $6.5 million, which would potentially offset the benefit of the FDIC premium reduction realized in the last half of 1995. For the first nine months of 1995, total noninterest operating expenses have declined 7 percent, with an 8 percent decrease in employee compensation, incentives and benefits. The other expense category declined 17 percent, reflecting the cost of establishing the charitable foundation in 1994. Income Taxes The effective tax rate increased from 32 percent in the third quarter of 1994 to 35.6 percent in the third quarter of 1995, primarily due to a $1.9 million tax reduction in the third quarter of 1994 for the elimination of a deferred tax valuation allowance related to the acquisition of SNMC SNMC Sunday Night Movie Club Management Corporation, parent company of Sunbelt Sunbelt Region, south and southwestern U.S. It is characterized by a warm climate, rapid population growth since 1970, and relatively conservative voting patterns. Comprising 15 states, it extends from Virginia and Florida in the southeast through Nevada in the southwest, National Mortgage Company. General First Tennessee, one of the 60 largest bank holding companies in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , reported total assets of $11.6 billion and shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. of $824.7 million at Sept. 30, 1995. The corporation's common stock is traded over-the-counter on the NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on Stock Market's national market system under the symbol FTEN FTEN Forum des technologies de l'écosystem numérique FTEN Financial Technology Exchange Network (trademark of FTEN, Inc.) . -0-
FIRST TENNESSEE NATIONAL CORPORATION
FINANCIAL HIGHLIGHTS
(Unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
1995 1994 1995 1994
Per Share Data:
Net income $1.30 $1.11 $3.51 $3.34
Dividends declared .47 .42 1.41 1.26
Book value 24.78 22.76 24.78 22.76
Selected Financial Ratios:
Return on average assets 1.50% 1.42% 1.43% 1.45%
Return on average equity 21.32 19.41 19.84 20.21
Net interest margin 3.85 4.29 3.89 4.32
Asset Quality (Dollar amounts in thousands):
Three Months Ended Nine Months Ended
September 30 September 30
1995 1994 1995 1994
Net charge-offs: 5,933 4,395 13,290 13,460
September 30
1995 1994
Nonperforming assets:
Nonaccrual loans $16,274 $17,877
Restructured loans 365 459
Total nonperforming loans 16,639 18,336
Foreclosed real estate 13,714 23,085
Other assets 1,094 2,087
Total nonperforming assets $31,447 $43,508
Nonperforming loans to total
loans (net of unearned income) .22% .27%
Nonperforming assets to total
loans (net of unearned income)
plus foreclosed real estate and
other assets .41% .64%
Allowance for loan losses $110,882 $110,178
Allowance for loan losses to
total loans 1.43% 1.62%
Allowance for loan losses to
nonperforming loans 666.40% 600.88%
Allowance for loan losses to
nonperforming assets 352.60% 253.24%
Non-government guaranteed past
due loans $16,542 $12,589
Government guaranteed past due
loans $ 9,984 $10,827
FINANCIAL HIGHLIGHTS
(Unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
1995 1994 1995 1994
Summary Statements of Income (Thousands)
Interest income $211,531 $178,975 $605,667 $515,409
Less interest
expense 112,924 79,697 319,389 216,594
Net interest income 98,607 99,278 286,278 298,815
Provision for loan
losses 5,921 4,231 13,285 12,918
Net interest income
after provision
for loan losses 92,686 95,047 272,993 285,897
Noninterest income:
Mortgage banking 55,276 42,767 144,941 146,719
Bond division 20,341 17,562 61,362 63,759
Deposit transactions
and cash management 17,888 16,530 53,300 47,600
Bank card 9,978 8,505 27,385 22,619
Trust service 8,562 6,877 27,097 20,738
Securities gains 25 238 512 22,580
Other 14,327 13,207 40,750 35,323
Total noninterest
income 126,397 105,686 355,347 359,338
Adjusted gross income
after provision for
loan losses 219,083 200,733 628,340 645,235
Noninterest expense:
Employee compensation,
incentives and
benefits 86,889 79,652 247,850 268,748
Occupancy 9,264 8,993 27,053 25,253
Equipment rentals,
depreciation and
maintenance 7,613 7,205 23,226 21,170
Other 47,286 49,615 146,341 165,166
Total noninterest
expense 151,052 145,465 444,470 480,337
Income before income
taxes 68,031 55,268 183,870 164,898
Applicable income
taxes 24,201 17,669 64,680 50,744
Net income $ 43,830 $ 37,599 $119,190 $114,154
Net interest income - FTE $ 99,761 $100,574 $289,825 $302,471
FINANCIAL HIGHLIGHTS
(Unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
1995 1994 1995 1994
Average Balance Sheet
(thousands)
Loans, net of unearned
income:
Commercial $ 3,172,722 $ 2,784,382 $ 3,098,201 $ 2,730,394
Consumer 2,383,262 2,146,356 2,321,667 2,034,362
Credit card
receivables 490,650 440,270 470,580 425,633
Real estate
construction 229,144 137,416 209,094 105,403
Permanent mortgage 670,663 567,821 645,319 548,217
Mortgage warehouse
loans held for
sale 983,328 619,943 638,020 843,868
Nonaccruing loans 15,618 16,490 16,118 19,073
Total loans, net of
unearned income 7,945,387 6,712,678 7,398,999 6,706,950
Investment securities 2,144,216 2,197,645 2,174,497 2,230,070
Other earning assets 264,914 436,972 367,688 416,343
Total earning assets 10,354,517 9,347,295 9,941,184 9,353,363
Cash and due from
banks 650,407 646,451 645,571 653,067
Other assets 611,972 500,984 559,214 519,874
Total assets $11,616,896 $10,494,730 $11,145,969 $10,526,304
Interest-bearing deposits $ 6,297,677 $ 6,004,723 $ 6,294,307 $ 5,919,590 Short-term borrowed funds 2,234,879 1,687,614 1,873,735 1,731,425 Term borrowings 201,489 91,719 198,450 91,828 Total interest- bearing liabilities 8,734,045 7,784,056 8,366,492 7,742,843 Demand deposits 1,755,619 1,698,545 1,702,478 1,736,118 Other liabilities 311,758 243,630 273,840 292,283 Shareholders' equity 815,474 768,499 803,159 755,060 Total liabilities and shareholders' equity $11,616,896 $10,494,730 $11,145,969 $10,526,304 Average shares outstanding 33,465,059 34,002,397 33,935,982 34,206,231
September 30
Period-End Balance Sheet (Thousands) 1995 1994
Loans, net of unearned income:
Commercial $ 3,167,155 $ 2,882,671
Consumer 2,434,438 2,193,887
Credit card receivables 497,794 448,248
Real estate construction 227,889 146,669
Permanent mortgage 678,789 573,466
Mortgage warehouse loans
held for sale 714,856 559,308
Nonaccruing loans 16,639 17,877
Total loans, net of
unearned income 7,737,560 6,822,126
Investment securities 1,989,457 2,247,065
Other earning assets 328,169 411,487
Total earning assets 10,055,186 9,480,678
Cash and due from banks 709,133 713,525
Other assets 816,749 637,280
Total assets $11,581,068 $10,831,483
Interest-bearing deposits $ 6,265,252 $ 6,070,311 Short-term borrowed funds 1,880,892 1,786,528 Term borrowings 201,057 91,701 Total interest-bearing liabilities 8,347,201 7,948,540 Demand deposits 1,809,031 1,723,653 Other liabilities 600,156 376,386 Shareholders' equity 824,680 782,904 Total liabilities and shareholders' equity $11,581,068 $10,831,483 Period-end shares outstanding 33,282,284 34,400,749-0- During 1995, First Tennessee acquired Carl I. Brown and Company and Community Bancshares, Inc. These acquisitions were accounted for as poolings of interests, and accordingly the financial position and results of operations of these companies are reflected on a combined basis from the earliest period presented. First Tennessee also acquired Peoples Commercial Services Corporation on April 1, 1995. This acquisition was accounted for as a purchase and accordingly the financial position and results of operations are reflected on a combined basis from the date of this acquisition. CONTACT: First Tennesse National Corp., Memphis Teresa Teresa of Ávila, St. religious contemplation brought her spiritual ecstasy. [Christian Hagiog.: Attwater, 318] See : Mysticism Fehrman, 901/523-4161 Kim Kim orphan wanders streets of India with lama. [Br. Lit.: Kim] See : Adventurousness Cherry cherry, name for several species of trees or shrubs of the genus Prunus (a few are sometimes classed as Padus) of the family Rosaceae (rose family) and for their fruits. , 901/523-4726 Marty Mosby Mos·by , John Singleton 1833-1916. American Confederate soldier who led a small cavalry unit, Mosby's Rangers, on raids against advanced Union positions. , 901/523-5620 REPEATS: New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of 212-575-8822 or 800-221-2462; Boston Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. 617-236-4266 or 80 |
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