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SOCIETY CORPORATION REPORTS RECORD QUARTERLY EARNINGS

 CLEVELAND, Oct. 14 /PRNewswire/ -- Society Corporation (NYSE: SCY), today reported record earnings per common share of $0.83 for the 1993 third quarter, compared with $0.69 per common share in the year-ago quarter, and $0.82 in the 1993 second quarter. Third quarter results included several nonrecurring, though offsetting, items with the result that operating earnings per common share were also $0.83, up 20 percent from the year-ago quarter. Net income for the 1993 third quarter was $98.2 million.
 For the first nine months of 1993 earnings per common share totaled $2.44, up 27 percent from $1.92 reported for the same period last year. Operating earnings per common share were up 26 percent year-to-date after excluding from 1992 results two nonrecurring items related to the acquisition of Ameritrust: a $20.1 million gain on the sale of branch offices and loans and a $50.0 million restructuring charge. Net income for the first nine months of 1993 was $290.1 million.
 "The third quarter was an historic one for Society Corporation," said Robert W. Gillespie, chairman and chief executive officer. "During this quarter a decision was made to pursue a merger with KeyCorp of Albany, New York. We are extremely pleased that this effort culminated with the October 4, 1993 announcement of the signing of a definitive agreement to merge our two organizations. This merger will significantly redefine our franchise scope and dramatically broaden product delivery capabilities and opportunities for both merger partners. These are two strong, high performing companies and we are very excited about the potential this merger brings for expanded revenue sources and enhanced shareholder value."
 Commenting on third quarter performance, James W. Wert, vice chairman and chief financial officer said, "Third quarter and year-to- date performance remained especially strong. Our third quarter return on average assets of 1.55 percent and return on common equity of 19.8 percent is consistent with our expectations that Society will rank at the top of industry performance in these key financial measures. We were also pleased with the continued improvement in asset quality measures including declines in nonperforming loans, nonperforming assets, and the lowest net charge-off ratio since the 1989 third quarter.
 "Other notable factors during the quarter were the recognition of two sizable one-time gains and the write-down of certain assets. The quarter also included a retroactive one percent increase in the federal income tax rate, as well as the early adoption of the new postemployment accounting standard -- SFAS 112. Since these nonrecurring items basically offset, operating and reported net income for the third quarter and year-to-date period were approximately the same."
 Net interest income in the third quarter was up $12.6 million, or 4 percent, from the year-ago quarter reflecting a $1.9 billion, or 9 percent, increase in the level of average earning assets. Compared to the 1993 second quarter, net interest income declined $9.9 million reflecting a decrease in the net interest margin from 5.35 percent to 5.25 percent, as well as a $411 million decline in average earning assets. The decline in the net interest margin was in line with expectations reflecting the narrowing of spreads available on the replacement of maturing securities and interest rate swaps. Loans at September 30, 1993, totaled $17.3 billion, up $263 million from June 30, 1993. This increase reflected growth during the quarter in consumer and residential mortgage loans which was partially offset by a decline in commercial loans due in part to a continued decline in nonperforming and commercial real estate loans.
 Noninterest income in the 1993 third quarter was $170.9 million, up considerably from $120.6 million in the year-ago quarter and $114.4 million in the 1993 second quarter. However, third quarter results included a number of nonrecurring items. Excluding the effect of these items, 1993 third quarter noninterest income totaled $118.2 million, up $3.8 million from the prior quarter with the increase spread throughout a number of miscellaneous businesses. Significant nonrecurring items impacting noninterest income in the 1993 third quarter were:
 ($ in millions except EPS)
 Pre-tax After-tax
 Ameritrust Texas gain on sale $29.4 $12.2/$0.10 EPS
 Net securities gains 25.1 $16.3/$0.14 EPS
 Noninterest expense totaled $284.9 million, also up considerably from $246.1 million in the 1992 third quarter and $257.0 million in the 1993 second quarter. However, as noted earlier, this was also impacted by several nonrecurring items. Excluding the impact of these items, 1993 third quarter noninterest expense totaled $250.5 million, down $6.5 million from the prior quarter level. Significant nonrecurring items that impacted 1993 noninterest expense were:
 ($ in millions except EPS)
 Pre-tax After-tax
 System conversion write-downs $21.4 $13.9/$0.12 EPS
 Facilities related charges 7.0 $4.6/$0.04 EPS
 Adoption of SFAS 112 - Employer's
 Accounting for Postemployment
 Benefits 4.0 $2.6/$0.02 EPS
 The high tax provision expense in the current quarter reflected taxes associated with the above mentioned nonrecurring items, as well as a one time increase in the current quarter of $3.0 million or $0.03 per common share reflecting a retroactive one percent increase to January 1993 in the corporate federal income tax rate as a result of the recent tax law changes.
 The provision for loan losses in the 1993 third quarter was $17.0 million, down from $18.0 million in the 1993 second quarter. This decrease reflected a decline in net charge-offs during the current quarter to $21.1 million or 0.50 percent of average loans, down from $24.1 million, or a 0.56 percent ratio in the prior quarter. Given our improved asset quality and strong reserve position, it is anticipated the provision for loan losses will continue to fall below net charge- offs in the quarters ahead.
 Nonperforming loans at September 30, 1993, were $199.8 million and represented 1.15 percent of loans, down $22.7 million or 10 percent from the end of the 1993 second quarter when nonperforming loans represented 1.31 percent of loans. Compared with the year-ago quarter, NPLs at quarter end were down $196.1 million or 50 percent. Coverage of NPLs by the allowance for loan losses increased during the third quarter to 243 percent from 220 percent in the second quarter and was well above the 130 percent level at the end of the year-ago quarter.
 Nonperforming assets at the end of the third quarter were $304.3 million, down $31.4 million or 9 percent from the end of the 1993 second quarter and down $270.0 million or 47 percent from September 30, 1992. NPAs at September 30, 1993, represented 1.75 percent of total loans, plus other real estate owned and other nonperforming assets compared to 1.96 percent at June 30, 1993, and 3.57 percent at the end of the year-ago quarter.
 At September 30, 1993, Society Corporation had $25.8 billion in assets and $2.0 billion in total equity capital. The September 30, 1993 Tier 1 capital ratio was estimated at 8.52 percent and the Total Capital ratio was estimated at 12.74 percent.
 On October 4, 1993, Society Corporation and KeyCorp (NYSE: KEY) of Albany, New York, announced the signing of a definitive agreement to merge. The transaction, which requires approval of shareholders of both Society and KeyCorp, as well as the receipt of regulatory approvals, is expected to close about March 31, 1994. The new company, which would assume the KeyCorp name and be headquartered in Cleveland, would rank as the tenth largest bank holding company in the nation with more than $58 billion in total assets and nearly 1,400 branch and affiliate offices in 18 states.
 Society Corporation Financial Highlights
 (Amounts in thousands, except per share amounts)
 Three months ended
 9-30-93 6-30-93 9-30-92
 Performance measures
 Net income $98,220 $96,939 $82,806
 Earnings per Common Share 0.83 0.82 0.69
 Dividends per Common Share 0.28 0.28 0.245
 Return on assets 1.55 pct 1.52 pct 1.43 pct
 Return on total equity 19.81 20.39 18.74
 Return on common equity 19.81 20.39 19.03
 Net interest margin 5.25 5.35 5.51
 Efficiency ratio (A) 59.94 60.65 60.36
 Overhead ratio (A) 44.13 46.12 43.89
 Asset Quality
 Net charge-offs $21,089 $24,061 $45,311
 Provision for loan losses 17,037 18,042 33,877
 Net charge-offs
 to average loans 0.50 pct 0.56 pct 1.15 pct
 (A) Excludes net securities gains, gain on sale of subsidiary,
 and other non-recurring charges.
 Nine months ended
 9-30-93 9-30-92
 Performance measures
 Net income $290,146 $214,704
 Earnings per Common Share 2.44 1.79
 Dividends per Common Share 0.84 0.735
 Return on assets 1.52 pct 1.21 pct
 Return on total equity 20.26 16.74
 Return on common equity 20.32 16.97
 Net interest margin 5.31 5.33
 Efficiency ratio (B) 59.99 61.44
 Overhead ratio (B) 45.08 45.40
 Asset Quality
 Net charge-offs $77,681 $130,465
 Provision for loan losses 59,080 116,257
 Net charge-offs
 to average loans 0.61 pct 1.06 pct
 (B) Excludes net securities gains, gain on sale of branch offices
 and loans, gain on sale of subsidiary, restructuring charges a
 other non-recurring charges.
 Society Corporation Financial Highlights
 (Amounts in thousands, except per share amounts)
 9-30-93 6-30-93 9-30-92
 Asset Quality Data
 Nonaccrual loans $199,351 $221,511 $394,617
 Restructured loans 402 923 1,246
 Nonperforming loans 199,753 222,434 395,863
 Other real estate owned 90,897 99,283 161,877
 Other nonperforming assets 13,633 13,989 16,551
 Nonperforming assets $304,283 $335,706 $574,291
 Nonperforming loans
 to total loans 1.15 pct 1.31 pct 2.49 pct
 Nonperforming assets to loans
 plus OREO and other NPA 1.75 pct 1.96 pct 3.57 pct
 Nonperforming assets
 to total assets 1.18 1.30 2.35
 Allowance for loan losses $484,992 $489,044 $512,736
 Allowance for loan losses
 to loans 2.80 pct 2.87 pct 3.22 pct
 Allowance for loan losses
 to nonperforming loans 242.80 219.86 129.52
 Intangible Assets
 Goodwill $171,322 $198,991 $164,625
 Other intangibles 35,446 110,505 121,508
 Common Share Data
 Book value per share $17.15 $16.58 $14.97
 Stock price 32.00 35.13 28.25
 Shares outstanding 117,086 116,979 116,110
 Capital adequacy ratios
 Tier 1 risk-based (C) 8.52 pct 8.32 pct 8.16 pct
 Total risk-based (C) 12.74 12.67 11.15
 Leverage ratio (C) 7.34 6.86 7.16
 Tangible equity to
 tangible assets 7.05 6.36 6.28
 Equity to assets 7.79 7.48 7.38
 (C) 9-30-93 ratio is estimated.
 Society Corporation Consolidated Balance Sheet
 (Amounts in thousands)
 Assets 9-30-93 6-30-93 9-30-92
 Cash and due from banks $979,703 $996,461 $1,432,473
 Interest-bearing deposits
 with banks 252,191 1,150,328 537,424
 Federal funds sold and
 security resale agreements 526,200 278,300 103,887
 Trading account assets 13,188 11,090 22,402
 Securities 5,643,847 5,373,215 5,477,912
 Loans, net of unearned
 income 17,300,218 17,037,273 15,910,411
 Allowance for loan losses (484,992) (489,044) (512,736)
 Net loans 16,815,226 16,548,229 15,397,675
 Premises and equipment 430,253 433,392 406,570
 Customers' liability
 on acceptances 16,327 21,759 73,979
 Other assets 1,083,698 1,106,986 936,559
 Total assets $25,760,633 $25,919,760 $24,388,881
 Liabilities 9-30-93 6-30-93 9-30-92
 Noninterest-bearing
 deposits $3,090,748 $3,263,661 $2,982,442
 Interest-bearing deposits 14,674,240 14,883,306 14,344,752
 Total deposits 17,764,988 18,146,967 17,327,194
 Federal funds purchased 1,601,535 1,662,474 1,606,465
 Securities sold
 under repurchase
 agreements 1,529,235 1,525,034 1,769,092
 Other short-term borrowings 1,161,099 1,083,426 441,586
 Acceptances outstanding 16,327 21,759 73,979
 Other liabilities 601,621 448,968 684,741
 Long-term debt 1,077,832 1,091,596 687,121
 Total liabilities 23,752,637 23,980,224 22,590,178
 Shareholders' equity
 Preferred stock 0 0 60,000
 Common shareholders' equity 2,007,996 1,939,536 1,738,703
 Total liabilities and
 shareholders' equity $25,760,633 $25,919,760 $24,388,881
 Society Corporation Consolidated Quarterly Income Statement
 (Amounts in thousands, except per share amounts)
 Three months ended
 9-30-93 6-30-93 9-30-92
 Interest and fee income
 Loans $339,088 $345,301 $336,930
 Securities 114,528 123,099 117,448
 Short-term investments 4,248 6,286 3,364
 Total interest and
 fee income 457,864 474,686 457,742
 Interest expense
 Deposits 118,708 124,965 145,188
 Short-term borrowings 26,029 27,167 20,349
 Long-term debt 19,048 18,570 10,743
 Total interest expense 163,785 170,702 176,280
 Net interest income 294,079 303,984 281,462
 Provision for loan losses 17,037 18,042 33,877
 Net interest income after
 provision for loan losses 277,042 285,942 247,585
 Noninterest income
 Trust income 53,640 53,734 49,399
 Deposit service charges 25,118 24,552 24,482
 Credit card fees 12,390 12,296 13,963
 Net securities gains 25,102 114 963
 Gain on sale of subsidiary 29,410 0 0
 Other income 25,229 23,710 31,812
 Total noninterest income 170,889 114,406 120,619
 Noninterest expense
 Salaries and benefits 131,688 122,256 122,834
 Net occupancy 24,743 22,579 23,276
 Equipment 19,867 19,690 19,150
 FDIC insurance 9,808 9,723 10,659
 Professional fees 4,531 5,068 7,651
 Other expense 94,215 77,669 62,483
 Total noninterest expense 284,852 256,985 246,053
 Income before income taxes 163,079 143,363 122,151
 Provision for income taxes 64,859 46,424 39,345
 Net income $98,220 $96,939 $82,806
 Net income applicable
 to Common Shares $98,220 $96,939 $81,249
 Net income per Common Share 0.83 0.82 0.69
 Weighted average shares 118,497 118,305 117,299
 Taxable equivalent adjustment $5,495 $5,437 $6,517
 Society Corporation Consolidated Year-to-Date Income Statement
 (Amounts in thousands, except per share amounts)
 Nine months ended
 9-30-93 9-30-92
 Interest and fee income
 Loans $1,030,204 $1,084,528
 Securities 365,355 336,308
 Short-term investments 15,634 18,857
 Total interest and
 fee income 1,411,193 1,439,693
 Interest expense
 Deposits 375,794 510,651
 Short-term borrowings 80,051 62,827
 Long-term debt 53,953 26,712
 Total interest expense 509,798 600,190
 Net interest income 901,395 839,503
 Provision for loan losses 59,080 116,257
 Net interest income after
 provision for loan losses 842,315 723,246
 Noninterest income
 Trust income 160,744 159,428
 Deposit service charges 73,586 74,328
 Credit card fees 35,778 41,513
 Net securities gains 26,399 9,633
 Gain on sale of branch
 offices and loans 0 20,074
 Gain on sale of subsidiary 29,410 0
 Other income 70,230 82,676
 Total noninterest income 396,147 387,652
 Noninterest expense
 Salaries and benefits 372,544 375,084
 Net occupancy 70,575 65,436
 Equipment 58,918 56,993
 FDIC insurance 31,032 33,174
 Professional fees 14,898 21,101
 Restructuring charges 0 50,016
 Other expense 242,538 196,989
 Total noninterest expense 790,505 798,793
 Income before income taxes 447,957 312,105
 Provision for income taxes 157,811 97,401
 Net income $290,146 $214,704
 Net income applicable
 to Common Shares $289,108 $210,034
 Net income per Common Share 2.44 1.79
 Weighted average shares 118,376 117,200
 Taxable equivalent adjustment $16,746 $21,279
 Society Corporation Consolidated Quarterly Average Balance Sheet
 (Amounts in thousands)
 Three months ended
 9-30-93 6-30-93 9-30-92
 Assets
 Interest-bearing deposits
 with banks $387,255 $696,552 $274,991
 Federal funds sold and
 security resale agreements 84,899 37,161 73,229
 Trading account assets 15,634 15,737 19,895
 Securities 5,275,457 5,301,350 4,753,700
 Loans, net of unearned income 16,978,201 17,101,279 15,754,084
 Total earning assets 22,741,446 23,152,079 20,875,899
 Allowance for loan losses (491,479) (499,963) (523,178)
 Cash and due from banks 1,263,471 1,265,767 1,306,505
 Premises and equipment 438,453 433,423 405,464
 Customers' liability
 on acceptances 19,297 24,321 103,660
 Other assets 1,185,944 1,168,450 826,671
 Total assets $25,157,132 $25,544,077 $22,995,021
 Liabilities
 Noninterest-bearing deposits $3,148,712 $3,044,340 $2,957,872
 Interest-bearing deposits 14,947,576 15,390,456 14,426,809
 Total deposits 18,096,288 18,434,796 17,384,681
 Federal funds purchased 875,700 1,141,295 611,893
 Securities sold
 under repurchase agreements 1,493,117 1,605,181 1,514,817
 Other short-term borrowings 990,029 869,461 482,684
 Acceptances outstanding 19,297 24,321 103,660
 Other liabilities 624,099 534,311 452,195
 Long-term debt 1,091,383 1,027,500 686,924
 Total liabilities 23,189,913 23,636,865 21,236,854
 Shareholders' equity
 Preferred stock 0 0 60,000
 Common shareholders' equity 1,967,219 1,907,212 1,698,167
 Total liabilities and
 shareholders' equity $25,157,132 $25,544,077 $22,995,021
 Society Corporation Consolidated Year-to-Date Average Balance Sheet
 (Amounts in thousands)
 Nine months ended
 9-30-93 9-30-92
 Assets
 Interest-bearing deposits
 with banks $535,016 $321,536
 Federal funds sold and
 security resale agreements 54,286 213,035
 Trading account assets 17,777 21,270
 Securities 5,375,381 4,596,834
 Loans, net of unearned income 17,071,449 16,395,160
 Total earning assets 23,053,909 21,547,835
 Allowance for loan losses (499,522) (525,326)
 Cash and due from banks 1,282,352 1,222,027
 Premises and equipment 434,627 374,156
 Customers' liability
 on acceptances 24,035 99,326
 Other assets 1,144,540 897,477
 Total assets $25,439,941 $23,615,495
 Liabilities
 Noninterest-bearing deposits $3,120,909 $2,994,383
 Interest-bearing deposits 15,283,089 15,420,048
 Total deposits 18,403,998 18,414,431
 Federal funds purchased 1,084,295 595,149
 Securities sold
 under repurchase agreements 1,647,795 1,391,391
 Other short-term borrowings 786,914 386,816
 Acceptances outstanding 24,035 99,326
 Other liabilities 556,672 474,199
 Long-term debt 1,021,157 540,473
 Total liabilities 23,524,866 21,901,785
 Shareholders' equity
 Preferred stock 13,187 60,000
 Common shareholders' equity 1,901,888 1,653,710
 Total liabilities and
 shareholders' equity $25,439,941 $23,615,495
 -0- 10/14/93
 /CONTACT: John Fuller, media, 216-689-8140, or Jay Gould, analysts, 216-689-4721; both of Society/
 (SCY)


CO: Society Corporation ST: Ohio IN: FIN SU: ERN

BM -- CL005 -- 2009 10/14/93 08:23 EDT
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